Modern Food Processing - September 2010 by Infomedia18

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Modern Food Processing

September 2010

EDITORIAL

On a high 5!

elcome to the 5th Anniversary Edition of ‘Modern Food Processing’! In hindsight, while the whole world was reeling under an unprecedented economic slump last year, the food & beverage sector was not impacted as adversely as some other domains. At the same time, this industry has its fair share of challenges to deal with. Some of these include regulatory and/or policy changes, trade barriers, demographic changes, the growing need for health & wellness solutions and the surge in sensitivity towards food safety & sustainability issues, among others. Given this scenario, the present phase could be an inflection point… As the world economy (more precisely, emerging nations) begins to ride on a new wave of growth and dynamic development, here is our attempt to further boost the content offerings. Besides generous helpings of rich and diverse information in this special edition, the endeavour has been to make the dissemination more reader-friendly. Going by some of the recent trends, there is a gradual shift in the food habits eg, from high carb food to organic food and diet food. Especially in the Indian context, one can foresee a greater need for public-private partnerships in addition to private investments in various facilities such as storage, processing, distribution systems, etc.

Published in association with Editor : Manas R Bastia Assistant Editor: Rakesh Rao Senior Features Writer: Prasenjit Chakraborty Features Writers: KTP Radhika Jinoy (Delhi), Mahua Roy Senior Correspondent: Shivani Mody (Bengaluru) Correspondent: Geetha Jayaraman (Delhi) Copy Desk: Marcilin Madathil Products Desk: A Mohankumar Group Photo Editor & Creative Head: Shiresh R Karrale Design: Mahendra Varpe Production: Vikas Bobhate, Pravin Koyande, Dnyaneshwar Goythale, Ravikumar Potdar, Ravi Salian, Sanjay Shelar, Lovey Fernandes, Pukha Dhawan, Varsha Nawathe, Akshata Rane, Abhay Borkar Marketing & Branding: Jagruti Shah, Ganesh Mahale CEO-Publishing: Sandeep Khosla Associate Vice President: Sudhanva Jategaonkar Subscription: Sunder Thiyagarajan, General Manager - Copy Sales Sheetal Kotawadekar, Senior Manager Tel: 91-22-3003 4631/4633 Email: customercare@infomedia18.in

As the government gears up to achieve the goal of trebling the size of food processing industry to $ 300 billion by 2015, it will be interesting to watch several developments unfolding in this space. This is precisely the content objective behind the theme of ‘Sector Watch’, wherein 20 captains of the industry share their views and analysis. Besides, the ‘Industry Update’ section is a valued collection of 10 special articles contributed by who’s who of industry. Plus, there is much more interesting and useful content inside with brand new design elements… Have a good read and yes, do write-in your feedback on this New Avatar - content and design elements - to make it even better. On the occasion of 5th Anniversary, here’s a Big ‘Thank You’ to all our internal and external stakeholders for this wonderful journey! Believe, you will enjoy reading this special edition as much as we enjoyed putting it together. Cheers to our 5th year of journey together!

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

Manas R Bastia Editor manas@infomedia18.in

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

September 2010 | Modern Food Processing

CONTENTS

ROUNDTABLE FDI in retail: A game-changing proposition

FACILITY VISIT Vista Processed Foods Pvt Ltd: Opening new vistas in food services

SECTOR WATCH MARKET UPDATE Global food & beverage market: On a healthy growth path Christopher J Shanahan, Sr Food Industry Analyst and Consultant - Global Chemicals, Materials & Foods Practice, Frost & Sullivan

TREND ANALYSIS Indian food processing sector: Blending the right ingredients D R Dogra, Managing Director & CEO, CARE Ratings

STATUS REVIEW 20 Experts speak on latest trends, opportunities, challenges & more…

INDUSTRY UPDATE

R EG U L A R S EC TI O N S Editorial ...................................................... 9 National News ......................................... 12 World News............................................. 16

Processed foods: Need to unload the tax burden Piruz Khambatta, President, All India Food Processors’ Association and CMD, Rasna Pvt Ltd

Organised retailing: Panacea for the agri-business sector Limji Nanabhoy, Director, Agri-Science (India) Ltd

From farm to plate: FSSAI makes the journey simpler Prabodh Halde, Head – Regulatory Affairs, Marico Ltd

Functional foods: Leveraging growth in the Indian market Rashmi Upadhya, Managing Consultant (Strategy) , PricewaterhouseCoopers India

Food ingredients: Unravelling the natural wealth Parveen Dang, Director (Sales) and R&D (South Asia), Orana India Pvt Ltd

Agri-commodity trading: Hedging risk, gaining profits Anil K Mishra, Managing Director, National Multi Commodity Exchange

Better productivity: Smart solutions for better process control Deepak Kudtarkar, F&B Sector In-Charge, Siemens Ltd

Automated solution: An integrated approach to efficiency Holger Schmidt, Global Industry Manager - Food and Beverage, Endress+Hauser Messtechnik GmbH+Co KG

Gluten-free product: A food category at crossroads Mark Whalley, Analyst - Consumer Business Unit, Datamonitor

Success in food safety: Adoption of best practices is the key Kathleen Wybourn, Director – Food Safety Solutions, DNV

SMART LOGISTICS Beating inflation: Tide over uncertainties strategically Abhijit Upadhye, Director, McDonald’s India

CURTAIN RAISER International Foodtec India 2010: A forum for novelty in processing

India Foodex 2010: Bringing technology to the fore

Product Update...................................... 110

FF&B 2010: A knowledge platform to nurture growth

Advertisers’ List ..................................... 131

106 108

Highlights of Next Issue

Product Inquiry ...................................... 125

Product Index......................................... 129

102

REPORT

Events Calendar ..................................... 104

Advertisement Inquiry............................ 127

100

Sector Watch Industry Update Market Insight

: : :

Food additives & ingredients Food processing machinery Best practices for food industry

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

Modern Food Processing | September 2010

NATIONAL NEWS NEW FACILITY

Coca-Cola to set up plant in Karnataka

Coca-Cola plans to establish a manufacturing base in Karnataka, with an outlay of ` 500 crore. The company is in negotiations with the state government for allotment of FOOD CLUSTERS

Maharashtra plans agri-processing clusters The Maharashtra Government is planning to give a boost to the agro-processing industry by adopting a separate agroindustrial policy for the state. The policy aims to attract new investments by offering incentives and promoting processing clusters. According to the draft policy document, the state EXPANSION

Aarey dairy capacity to be raised

The Government of Maharashtra plans to raise the production capacity of Aarey dairy by 7.5 lakh litre daily. ENVIRONMENT

HTW to launch a major global recycling movement Hindustan Tin Works Ltd (HTW) has initiated the first ‘Global Metal Can Recycling Movement’. The week from November 10-17, 2010, will be marked as the ‘Canvironment Week’, which aims at spreading awareness about the eco-friendly benefits of cans by conducting activities across the world for

land in Yadgir district. “The market for beverages is growing, and CocaCola is poised to witness 20 per cent growth this year. Last few quarters also illustrate this growth pattern. Going by the market requirements and launch of more fruit-based drinks, we are in the process of finalising plans for a manufacturing base in Karnataka,” said Deepak Kaul, VicePresident (South), Hindustan Coca-Cola Beverages. He revealed that the

investments would be spread over a 35 year period. The new manufacturing base is planned for fruit-based drinks. The market for drinks served in PET bottles is expected to witness a huge surge and the plant aims to address that demand. At present, the company has 52 bottling plants, of which 25 are franchise-owned and the rest are company-owned. The plant in Karnataka will be company-owned.

government is looking at setting up agriprocessing clusters for fruits, vegetables, cashew, cereals, pulses, oilseeds and dairy products. The document has indicated that clusters could be set up at 57 locations across the state. Each cluster would have support infrastructure for producers and processors. It will promote availability of raw materials & other inputs; gain aid from the government, agriculture

universities & research institutions and would enhance access to market information. This would help farmers and processors to come together and offer higher value-added products.

Nitin Raut, State Minister for Dairy Development, said, “Talks are at an advanced stage with the National Dairy Development Board (NDDB), which would provide the necessary expertise for raising the capacity from the current level of 2.5 lakh litre to 10 lakh litre a day. The national body would also help in formulating the milk procurement policy of the state.” Raut added, “As the machinery at the dairy is over 30 years old, it

could not take additional raw milk for processing. An expert group has already been formed, which will submit its preliminary report for the revamp of the dairy. The number of milk booths across Mumbai will also be increased.” Aarey dairy and the surrounding colony is spread over 3,166 acre of prime land at Goregaon. It also has smaller processing units at Kurla and Worli. Aarey Milk Colony at Goregaon was established in 1949.

the promotion of metal can recycling. In addition to the International Packaging Association (IPA), an association of 16 major can-makers from Europe, America, Asia and Australia; can-makers from Korea and Brazil have also pledged their support to the Canvironment Week. birth Celebrating the 200th anniversary of cans and paying tribute to the father of canning, Nicholas Appert, is another significant feature of the event. To mark this landmark year in India,

medicare incentives are being provided to 200 rag pickers. “Rag pickers are the basic link in the recycling chain. By providing medical facilities to them, we are ensuring the continuity of recycling and its sustainability,” said Atit Bhatia, Sr Vice-President, HTW, and President, Canvironment Week.

Modern Food Processing | September 2010

NATIONAL NEWS EVENT

Industry gears up for drink technology India

International PackTech India and drink technology India (dtI) will be held together for the first time from November 18-20, 2010, at the Bombay Exhibition Centre, RETAIL

Amul to increase its retail outlets two-fold India’s largest milk producer, Gujarat Co-operative Milk Marketing Federation (GCMMF), which markets Amul brand of dairy products, is reportedly planning to double its retail outlets panIndia, by 2012. Debashis Chattopadhayay, National Head (Retail), Amul India, said, “We aim to double the count of Amul Preferred Outlets (APOs) across India from NEW LOOK

Parle agro unveils ‘Appy’ in a brand new look

Parle Agro recently revamped the look of its still apple drink, Appy. The product APPOINTMENT

Avery Dennison names Anil Sharma as MD Avery Dennison Materials (South Asia) recently announced a key leadership change and named Anil Sharma as its new Managing Director. He will succeed Raj Srinivasan, who is now Vice-President - New Product Introduction at the Avery Research Center, Pasadena, California.

Goregaon (E), Mumbai. Messe München GmbH and Messe Düsseldorf GmbH are the organisers of the joint trade fair. Around 200 exhibitors from 15 countries will be presenting beverage and liquid-food technology along with packaging technology, offering the Indian customers the opportunity to experience the latest developments in these arenas. The German food processing and packaging machinery industry has exported nearly

Euro 52.5 million worth machinery to India in 2009, which is approximately 15 per cent of total export volume of Euro 347 million. India is one of the top export destinations in Asia. Hence, the event holds great significance for all stakeholders in beverage and packaging industries in India as well as abroad. The participants can gain access to knowledge on the technological advancements in the areas of drink technology and packaging.

the existing 5,000 to 10,000 by 2012. By the end of this fiscal, we would add close to 2,000 such outlets.” Contribution from the retail segment in GCMMF’s turnover of over ` 8,000 crore stood at ` 300 crore, in the year-ending March 2010. Through this segment, the company is targeting contribution of at least ten per cent of Federation’s total turnover, Chattopadhayay said. According to the company, in the past three years, the Federation has been

adding close to 1,500 to 2,000 APOs per annum. “The sale of our dairy products from each outlet has been brisk, ranging between ` 10,000 and 50,000 per day,” Chattopadhayay added.

retains the black packaging, while the logo takes on the golden-yellow colour of apple juice. Nadia Chauhan, Joint Managing Director & CMO, Parle Agro, said, “The changes in design will enable us to strengthen Appy’s brand image of being a premium apple drink made from the finest, juicy apples. We are excited about the new look, which we feel, will appeal to all existing Appy fans, while generating a high recall amongst young, modern consumers.”

In addition to the new look, Appy will now be available in a 250 ml PET bottle as well, besides the existing Stock Keeping Units (SKUs) of 200 ml and 1 litre Tetra. “Appy, in this format, will enable us to further drive volume sales for the brand and strengthen our position in the ‘still apple drinks’ category. This move is also in line with our overall strategy to increase sales by addressing ‘on-the-go’ consumption, targeting primarily the youth and adults,” added Chauhan.

In his new role, Sharma will assume full strategic and operational responsibility for driving growth, productivity and profitability in the Roll Materials business in India, Pakistan, Bangladesh, Sri Lanka and Nepal. He also has a shared responsibility in the management of the graphics, reflective and specialty tape business in the South Asia region.

Modern Food Processing | September 2010

Anil Sharma

Anil Sharma was previously with Diversey Inc, a global leader in industrial detergents and sanitisers, where he served as Vice-President of Sales - Food & Beverages.

WORLD NEWS INVESTMENT

PepsiCo to invest $ 250 million in Vietnam

PepsiCo Inc has recently announced its plans to invest $ 250 million in Vietnam during the next three QUALITY TESTING

Mettler Toledo Safeline’s new metal detector for contaminant detection Processors and packagers of bulk food products can strengthen quality with new product inspection equipment from Mettler Toledo Safeline. The company has unveiled its new RB Series Profile, a metal detector that is specially designed to detect contaminants. Equipped with an advanced Safeline detection coil and new detector head PRODUCTION GROWTH

Wild Fig triples ice cream production

Welsh ice cream manufacturer Wild Fig has trebled its production after SALE

Northern Foods sells Dalepak for £ 6.4 million Northern Foods is selling Dalepak Frozen Foods to the Irish Food Processors (IFP) Group in a £ 6.4 million deal. Dalepak makes frozen meat and meat-free grills and owns the Dalepak, Ross & Grassington’s brands. “The business is not one of our core segments, and

years. The investment will be aimed at increasing manufacturing capacity, product innovation as well as infrastructure expansion such as adding coolers and other equipment. “Vietnam represents one of PepsiCo’s most exciting growth opportunities. Therefore, this investment is a reflection of our confidence in this dynamic country & the talented people who live and work here. We believe there

are huge growth prospects here,” said Saad Abdul-Latif, Chief Executive Officer, PepsiCo-Asia, the Middle East and Africa. PepsiCo’s international investment has been significant during the past few years. In May, 2010, the company announced its plans to invest $ 2.5 billion in China during the next three years. In 2008, PepsiCo announced its investment plans of $ 3 billion in Mexico.

geometry, the new RB Series Profile provides high detection sensitivity with a large aperture configuration, to ensure safety. The RB Series Profile, with an aperture of 650 mm x 400 mm, can typically detect contaminants smaller than 1.8 mm in diameter, including ferrous, non-ferrous and even difficult to identify non-magnetic stainless steel grades. “With the new RB Series Profile, we are surpassing previous limitations with regard to inspection of bulk products.

No longer is high detection sensitivity only associated with metal detectors with small apertures,” said David Barber, Head-Products, Mettler Toledo Safeline. The flexible metal detection system can be configured to inspect bulk bags and sacks of granular and powdered products from 25 kg to 50 kg.

picking up a major contract to supply ice cream tubs to the Wales Millennium Centre. The family-owned firm, which makes ice cream and sorbets using fruit grown at its own farm at Peterson super-Ely in the Vale of Glamorgan, has invested heavily in new equipment to meet growing demands. Lucy George, MD, Wild Fig, noted, “In the last 12 months, the business has been transformed. We have invested in the ice cream production area with an additional batch freezer and an

ageing vat. Moreover, we have opened a parlour where visitors can watch the ice cream being made,” she added. The company first started making ice-creams in 1989 using strawberries, raspberries and blackcurrants grown in its own fruit garden and acquired milk and double cream from neighbouring farms. Following the launch of the Wild Fig brand in 2005, it has won several awards and received mentoring support from the Welsh Assembly Government, said George.

probably provides a better fit with IFP,” said Northern Foods officials. Dalepak will operate within the IFP Convenience Food Division, said IFP official. “The Dalepak product range is an excellent fit for our growing convenience food operations in the UK,” the official added. IFP is one of the largest beef processors in Europe, owning and

operating Anglo Beef Processors Holdings and Anglo Irish Beef Processors. It also owns burger-maker Wessex Foods; sausage supplier Freshlink Foods, and sandwich-maker Eatwell UK.

Modern Food Processing | September 2010

WORLD NEWS

ACQUISITION

Kerry Group buys Springthyme Oils

EXPANSION

Swiss group to increase global presence Swiss food group Aryzta has announced the full purchase of Canadian bakery firm, Maidstone Bakeries. Earlier, Maidstone had been a 50:50 partnership between Aryzta and Tim Hortons Inc, and will continue to supply the Tim Hortons network until at least the year 2016. ANNOUNCEMENT

First monograph on isomaltulose published in Food Chemicals Codex

ACQUISITION

German investment group to acquire Kamps ECM Equity Capital Management GmbH, a Frankfurt-based investment group, has agreed to acquire the German bakery chain Kamps AG from Barilla, the world’s largest producer of pasta. Under terms of the transaction, Barilla will retain the company’s industrial bread unit that now generates the majority of the bakery’s sales.

The Kerry Group has acquired Lancashire-based infused oil-maker Springthyme Oils. Springthyme makes intensely flavoured oils which are steeped with fresh ingredients, heated rapidly for maximum flavour release and then filtered. These have gradually replaced dried herbs and flavoured oils in many soups & dressings owing to their clean-label status. They are also sold to bottling companies for own-label and branded

oil ranges for the retail market. Springthyme recently scored an industry first with the development of unusual semi-solid infused fats (bakery shortenings) that have been heated up, infused with fresh herbs and spices, and then cooled down again. These enable food manufacturers to develop more unusual premium products such as chilli-flavoured pastry for sausage rolls and herb-flavoured pizza bases.

The deal is worth $ 454 million and is Aryzta’s third North American buy-out since early June when it paid a combined $ 1.08 billion for Fresh Start Bakeries and Great Kitchens. The Swiss company also confirmed that its US subsidiary was completing investments worth $ 48 million for bakeries in Taiwan, Singapore and Malaysia, besides building a new bakery in Brazil.

“These investments significantly enhance our bakery capabilities in North America, as well as in Latin America and Asia,” said Owen Killian, Chief Executive Officer, Aryzta.

BENEO-Institute announced the publication of the first monograph on the functional carbohydrate, isomaltulose (brand name Palatinose), in the Seventh Edition of Food Chemicals Codex (FCC). For more than a year, analytical and regulatory experts of the BENEO-Institute have contributed to the development of the monograph in close collaboration with FCC.

The new FCC monograph will set a worldwide industry benchmark for this ingredient. Clients with products containing FCC-approved isomaltulose will benefit from the quality status it provides. Anke Sentko, Vice President-Regulatory Affairs and Nutrition Communication, commented, “We are delighted to support FCC in its development of a monograph, and thus, set the quality standard of isomaltulose.”

In May, Barilla had said that it was evaluating offers for the bakery chain. At the time, Guido Barilla, Chairman, Barilla, told that Kamps was not a ‘strategic business’. “It is worth a lot, and we are not interested in giving it away,” he added. Barilla had tried, without success, to sell Kamps a year earlier. Kamps, which was acquired by Barilla in mid-2002, is Germany’s largest craft bakery chain with five craft bakeries and 900 locations. Kamps

would be the fifth portfolio company within ECM Equity’s GEP III portfolio. Two of the companies in GEP III are food-related, including KADI AG, a Swiss-based maker of frozen foods, like French fries and snack products.

Modern Food Processing | September 2010

ROUNDTABLE

FDI in retail

A game-changing proposition

Courtesy: Winkelcentrum De Terp

Mohit Khattar Managing Director, Godrej Natureâ&#x20AC;&#x2122;s Basket The macro-economic benefits of FDI are many. To begin with, it is good news for Indian consumers. It will give them a wider choice of quality products across different categories, at affordable prices. More competition will also spur better service levels for consumers. It will lead to better logistics & back-end retail operations, and thereby, improve efficiencies & profitability. Investments in warehousing will help stem the wastage in farm production and will also result in quantum improvements in the food processing industry in general. Countries like China had opened its retail doors way back in 1992 and have benefitted immensely. Several organised food retail stores have opened in the last couple of years, but have consumers really stopped visiting mom and pop stores? No. If consumers prefer a particular retail store, it is because that store offers them something of relevance â&#x20AC;&#x201C; either a better product/value or better service levels or ambience. Despite having been around for the last five years or more, organised retailers are hard pressed to

Modern Food Processing | September 2010

The government is reportedly contemplating on allowing foreign direct investment (FDI) in retail. While this initiative will provide more choice to consumers as well as improve the food industry infrastructure, there is an apprehension that it might adversely affect the farmers and the unorganised retail sector, which provides employment to millions in the country. While speaking to industry experts, Shivani Mody finds out the pros and cons of this step.

match the service levels of mom and pop stores. They may be better when it comes to offering a larger assortment, but are hard-pressed to match personalised services like home delivery, credit or catchment-specific products that mom and pop stores offer effortlessly. Even their stock rotation is immaculate. Since the consumer wants diverse things at different times, we have seen consumers adopt both formats simultaneously. That is precisely the reason why we believe that both can co-exist and the growth of one does not necessarily imply the demise of the other. Adoption of appropriate strategies will enable both to complement each other. One must also remember that India is a large and rapidly growing market where organised food retailers still contribute a miniscule 4-5 per cent of the overall market. Mom and pop stores or traditional kirana stores in the immediate catchments of the organised retailers could suffer temporary loss of business, if they continue to remain undifferentiated or do not promise attractive offerings for the consumer. FDI is good news for the retail sector in India. With the government committed to upgrading the back-end infrastructure as well as boosting rural employment, FDI will surely help in the achievement of these objectives apart from providing benefits to the end-consumers and the retail industry, in general.

ROUNDTABLE

Vineet Kapila President, Spencer’s Retail Ltd FDI in the country is a welcome move. Capital drives investment, which in turn triggers consumption, and consumption drives further economic growth. Currently, there is a paucity of capital in the economy. Retail requires long-term equity because it is a long-term business. FDI would usher in the necessary investments in this sector, which will facilitate further growth and development. As the industry develops, there would be better accessibility in terms of manufacturers and producers finding more windows to sell their products, greater

Bejon Misra Chairman, Cell for Consumer Education & Advocacy (CCEA) Society FDI in food retailing will encourage competition and allow the customers to assert their rights, especially the right to informed choice. This will enable access to quality food at the most affordable price and attain value for money in terms of quality and price. However, it should be allowed only after putting in place an effective regulatory mechanism, which is transparent, accountable and would also protect the rights of customers and retailers. Such a mechanism will also ensure fair trade practices. The initiative will help retailers to grow and get organised. It will also encourage them to adopt best practices and integrate themselves with technology. Moreover, they would be able to offer products at a

Devinder Sharma Food Policy Analyst Lessons need to be drawn from a study entitled ‘Wal-Mart and Poverty’ by Stephen J Goetz and Hema Swaminathan from the Department of Agricultural Economics and Rural Sociology, at Pennsylvania State University, US. The authors measured the impact of Wal-Mart’s massive retail boom on poverty in various American states. The comprehensive study revealed that those American states that had more Wal-Mart stores in 1987 had higher poverty rates by 1999 than the states where fewer stores were set up. Equally important, the countries (districts) that built new Wal-Mart stores between 1987-1998 also had high poverty rates, the report concludes. Interestingly, increased poverty growth from Wal-Mart operations came at a time when poverty rates nationally were otherwise declining. At stake is the livelihood security of 12 million small shopkeepers, 40 million hawkers and at least 200 million (of

availability in terms of consumers finding more options to shop and hence affordability, since healthy competition would ensure that the customers get a good deal. It will be a win-win situation for all. From the government’s point of view also, revenue and tax collections will be higher. Here, in terms of the cap, let the government decide what is best for all.

competitive price to enable better margins through elimination of unwanted intermediaries and provide quality service to customers. Small and unorganised retailers will also become more vibrant due to healthy competition. In addition, customers would continue to patronise the smaller and neighbourhood stores, as these provide convenience and special purpose value-addition compared to the organised and big retailers. However, the policy must ensure the best market prices based on open competition; and ascertain sale of healthy and safe products to the consumers.

the 600 million) small farmers. Is it a small sacrifice to be made for ensuring success of the organised retail boom? If big retail was so good for farmers, there is no reason why the US/EU should be providing direct income support to farmers. Farmers in US/EU survive not because of big retail/commodity trading but because they receive direct income support. Regarding employment, big retail does not squeeze out middlemen from the food chain. In fact, it only replaces the plethora of small middlemen, which comprise the quality controller, certification agencies, packaging industry, processors, wholesalers, etc. By taking into account all facts, one should tread the path cautiously.

September 2010 | Modern Food Processing

ROUNDTABLE

Ramesh Srinivas Executive Director, Head Consumer Markets, KPMG India Recent consideration by the government to allow FDI in food retailing can be attributed to supply-side constraints in the food-related retail chains. If approved, we can expect improvement in back-end infrastructure, and thereby, reduction in post-harvest losses & other wastage that currently stand at about 30 per cent. More importantly, it is likely to benefit the end-consumers to some extent. The real impact of FDI in the sector would be the associated expertise that large global brands would bring into the Indian market. Although the emergence of organised players is expected to offer consumers a wider choice of products, reduce inefficiencies in the supply chain and offer a better

R S Sodhi Incharge Managing Director, Gujarat Cooperative Milk Marketing Federation (GCMMF) There are arguments both in favour and against FDI in food retailing. Supporters argue that FDI in retail will ensure foreign money being pumped into creation of post-harvest and supply chain infrastructure. Employment opportunities will also be created on a large scale, besides providing better shopping ambience to the consumers. However, because of their higher bargaining power, organised retailers would lure farmers initially in providing their produce at lucrative prices; but after establishing their monopoly, they would exploit the farmers in order to maximise their profits. Large retailers will demand for longer credit period, higher margins, longer balance shelf-life etc, which means that remunerative returns to farmers are not guaranteed. Organised retailers mainly push their private labels to the consumers and on attaining monopoly on that front too, demand higher prices from consumers. In terms of employment too, they would drive out farmers from their field by adopting contract farming. On the other hand, the traditional retailers are the second-largest employers in the country followed by agriculture, and organised retailers would never be able to match these volumes at any point, thus driving large part of the semi-skilled population out of employment.

Modern Food Processing | September 2010

shopping experience, small and unorganised retailers will continue to benefit from their own set of advantages like proximity, familiarity, favourable credit terms and home delivery. While there can be some challenges like intensified competition, margin pressure, etc for small retailers, unorganised retailers would continue to co-exist alongside organised ones. In the past, infrastructure bottlenecks have obstructed the growth of business in India and FDI allowance appears to be a positive option to promote the industry. The investments from international players are expected to give a boost to the infrastructure and generate employment opportunities. Moreover, allowing FDI in retail is likely to raise the quality standards and intensify the competition in the current market. The major development in food retail is consideration of FDI with a limitation that all companies would have to meet mandated export obligations. Also, regulations need to be more stringent and restrictive in order to safeguard small and unorganised stores.

As far as procurement and supply chain infrastructure & its efficiency is concerned, it can be managed independently by co-operatives or government/private sector, and organised retailing is not the only alternative. In terms of margins too, with high cost of retail infrastructure, organised retailers incur nearly 15-20 per cent of the price of produce on their operational expenditure as compared to the wafer thin margins provided by wholesalers and traditional retailers. Therefore, allowing FDI in retailing would be fatal for the nation not only from the farmersâ&#x20AC;&#x2122; point of view, but also from the consumersâ&#x20AC;&#x2122; aspect as well. Hence, we are strongly against the proposal. It is estimated that there are around 120 lakh traditional food outlets in the country, with the highest number of outlets per person in the world. They also provide employment to millions of people. Further, in India, consumers are reluctant to travel long distance to shop for routine purchases; they prefer to purchase fresh food from bazaars, groceries from neighbourhood kirana stores. They also prefer home delivery, credit facilities among other conveniences. In this scenario, it is difficult for organised retailers to make a large dent in the traditional food retail segment. However, because of their size and deep pockets, they may lure the consumers, but only for the short term. This way, both organised retail and traditional stores would exist simultaneously. The government should exercise extreme caution in allowing FDI in food retailing and should ensure that interests of both farmers and consumers are well-protected in the long run.

ROUNDTABLE

Nagarajan Narasimhan Director, CRISIL Research Foreign direct investments (FDI) in multi-brand retail hold the potential to reduce the prices of perishable food such as fruits and vegetables in India, over the long term. This measure is likely to fuel a flow of investments from organised retailers and logistics companies for establishing quality supply chain infrastructure for fresh fruits and vegetables. An efficient supply chain will enable large retailers to source vegetable and fruit produce directly from agricultural co-operatives; lower annual wastages â&#x20AC;&#x201C; about ` 630 billion in 2009-10; and reduce commissions of trade intermediaries. This, in turn, will improve realisations to farmers, reduce consumer prices of fruits and vegetables, and increase operating margins of large retailers. About 30 per cent of Indiaâ&#x20AC;&#x2122;s total production of fruits and vegetables go waste every year due to inadequate cold storage and transportation facilities. According to CRISIL Research estimates, almost 50 per cent of the annual wastages can be prevented, if fruit and vegetable retailers have access to specialised cold storage facilities and refrigerated trucks. Further, large retailers will be able to save on commissions, amounting to 10-15 per cent of the retail-selling price of fruits and vegetables, while trading with intermediaries

such as commission agents and wholesalers, if they are able to source the produce directly from agricultural co-operatives. The wastage in the supply chain and the commission to trade with intermediaries inflate the final price paid by Indian consumers for fruits and vegetables. Indian consumers pay nearly 2 to 2.5 times the price paid to a farmer as compared to 1 to 1.5 times in developed markets, where the penetration of organised retail is much higher. The research also estimates that ` 650 billion will have to be invested over the medium term to build the supply chain infrastructure for fruits and vegetables. The fruit and vegetable segment has so far not attracted adequate investments since organised retailers account for less than 1 per cent of the total sales of fruits and vegetables in India. Hence, allowing FDI in multi-brand retail spells good news for the industry to reduce the prices of perishable food produce such as fruits and vegetables in India, over the long term.

September 2010 | Modern Food Processing

FACILITY VISIT

Vista Processed Foods Pvt Ltd

Opening new vistas in food services Vista Processed Foods is expanding its horizons by creating technology-driven products. Besides, it has adopted several international practices to help the company maintain consistent quality. However, the cornerstone of its success is team-effort – it always invites, encourages and recognises innovative ideas from team members for enhancing quality and productivity. Prasenjit Chakraborty traces the growth path of the company.

he Mumbai-based Vista Processed Foods (the US-based OSI Group company) is well-placed as a food solution company. Its state-of-the-art plant is located in Navi Mumbai. Currently, the annual production capacity of the plant exceeds 10,000 MT. Its association with the reputed OSI Group gives some major leverage points to Vista.

Modern Food Processing | September 2010

Manufacturing standards & technologies The manufacturing standards of Vista are based on Individually Quick Frozen (IQF) technology. The company has a sustainable and competitive supply chain of raw materials from farm to fork. “Our company is ISO 22000/ISO14001/ SQMS certified and our vision is to be the best convenient frozen and chilled food processing company in India,” says Bhupinder Singh, CEO, Vista Processed Foods Pvt Ltd. He further adds that they have succeeded so far in this direction because high standards are ensured in every aspect of the cold chain, be it procurement, processing or delivery. The company has a clear mission when it comes to satisfying customer expectations. Providing more insights on this, Singh asserts, “We maintain our competitive edge in the market by developing and inculcating the best value, which helps us to offer high quality processed frozen &

FACILITY VISIT

chilled food products.” This has become possible through team approach, which is instrumental to grow and achieve success. The company believes in the power of innovation, and hence, encourages novel ideas from the team members that would help in improving productivity and quality. “Building human resource capabilities to achieve excellence has been our prime focus,” says Singh.

Quality practices and policies The company strongly believes that high quality standards can be achieved by encouraging a quality culture aiming at error-free performance through continuous improvement and Hazard Analysis and Critical Control Point (HACCP) plan. The incorporation of ISO 22000, EMS (Environmental Management System), and social responsibility into the quality management system are some examples in this direction. “It has been our constant endeavour to deliver hygienically packed, consistent quality products to our customers. Clearly, the approach is to build business success through customer satisfaction by complying with customer specification and meeting their expectations. Vista believes in this principle and practices it to the core,” states Singh. This is not all. Vista even works with farmers, primary processors, transporters and suppliers to incorporate such initiatives. “Scientists and managers of our organisation are credited with helping farmers in implementing Good Agriculture Practices (GAP). This has enabled in procurement of

Processing facility

quality products, which is maintained throughout the cold chain,” says Singh. Raw materials determine the quality of any product. In this regard, the company follows strict rules by undertaking stringent quality checks – physical, chemical and microbiological. The process does not end here; raw materials go through screening and sorting before being used for production. To make the product absolutely flawless, continued monitoring is done during the production and packaging stages, which is documented and analysed towards the end of production shift. “Each batch of the finished product is evaluated for its sensory attributes and tested for food safety. Customer complaints, if any, are analysed to their root cause and corrective action is taken immediately,” claims Singh.

Productivity enhancement programmes Using sophisticated technology is a forgone conclusion for Vista. In order to augment productivity, the company has installed state-of-the-art machinery & equipment and also perfected various operational systems. The company has deployed the best machinery available, based on references from other OSI Group of Companies and undertaken a thorough testing to determine performance levels. “Upon recommendation from the operations team and proper evaluations by experts, new equipment is purchased to enhance the existing productivity,” asserts Singh. Lately, the company has increased efficiency by procuring high capacity

Bhupinder Singh CEO

Scientists and managers of our organisation are credited with helping farmers in implementing good agriculture practices (GAP). This has enabled in procurement of quality products, which is maintained throughout the cold chain. mixer. The new mixer was designed for quality improvement. Apart from this, the new forming machine has replaced the old for improving quality and reducing rejects. A 750 KVA DG set had replaced the 125 KVA sets, which could only maintain the temperature in the cold room. “With this, now the plant can run in the event of electricity failure. We have also doubled the capacity of our effluent treatment plant (ETP),” says Singh. Not only that, the plant has been remodelled for better man & material movement and utilisation of storage capacity. Productivity depends on many internal and external factors like quality of manpower, availability of raw materials, equipment efficiency, downtime and rejects. To make the whole process efficient, it is documented and reported in each shift. “We also analyse data, which helps us to detect the root cause of any problem, and accordingly corrective action is implemented. Our process engineers are always on the look-out for

Packing area

September 2010 | Modern Food Processing

FACILITY VISIT

improvements,” observes Singh. Besides, product specification control and product capability data are continuously recorded to reduce rejects. Last but not the least, inventories of raw materials, packaging materials and spare parts are closely monitored to avoid stock-outs.

World-class management tools & systems In its endeavour to maintain leadership position in the market, Vista has implemented many systems in their plant. The major management tools employed by the company include Suppliers Quality Management System (SQMS); Process Performance Improvement Team (PPIT); and 8D programmee (8 Dimensional) for Root Cause Analysis (RCA). “SQMS is designed by McDonald’s for its suppliers. It is a powerful quality management system that incorporates ISO22000, EMS and social accountability. It is a sound system that ensures safe and hygienic food manufacturing. The programmee

is audited once a year by a third party auditor,” informs Singh. Similarly, PPIT is a process management reporting system wherein production and quality parameters are reported along side with the 13 other APMEA (Asia-Pacific Middle East and Africa) OSI manufacturing facilities. The reports are used to do GAP analysis. Issues are addressed and solutions are found in a team environment where all APMEA member plants pitch in. The 8D plan for RCA is another powerful tool to get to the root cause of any problem. It consists of a series of questions aiming towards narrowing down to the basic cause responsible for error. “The origin of 8D plan is from the automobile industry. We have used the fundamentals to design our own plant that is suitable for the food industry,” reveals Singh.

Key innovations In the last one-and-a-half decade, the new product development division at

Modern Food Processing | September 2010

Vista has developed several products for McDonald’s that are rated high. The sensory attributes and product integrity have been maintained & improved since the origin. It has many firsts to its credit. The company has developed coating material and spice mix locally that were earlier imported. Besides, processes were developed to produce ethnic Indian products at high speed. “Lettuce that was once alien to Indian consumers is now being grown successfully with the help of our scientists,” claims Singh. Contract farmers were trained to grow lettuce with its original texture and flavour.

Expansion plans The company has plans to expand its footprint in other parts of the country. “Plans are afoot to set up new factories in the northern and southern regions of India. We have been growing as a team and would continue to grow in the years to come,” avers Singh.

SECTOR WATCH

Vision 2015

Roadmap to unleash Indian food industry’s potential

MARKET UPDATE Global food & beverage market: On a healthy growth path ......................... 28 TREND ANALYSIS Indian food processing sector: Blending the right ingredients....................... 34 STATUS REVIEW 20 Experts speak on latest trends, opportunities, challenges & more… ........ 38

September 2010 | Modern Food Processing

MARKET UPDATE

Global food & beverage market

On a healthy growth path There is a general shift in the global demand for healthy food & beverages, opening up new avenues for food ingredient suppliers. Given the increasing globalisation coupled with the rising demand for health & wellness solutions and the growing consumer sensitivity to food safety & sustainability issues, the food & beverage industry has a long way to go to reach the pinnacle of success. Courtesy: Flickr.com

Christopher J Shanahan

he global demand for food & beverage products reached $ 11.6 trillion in 2009 and is likely to reach $ 15 trillion by 2014. Accounting for a significant share of the global economy, this industryâ&#x20AC;&#x2122;s well-being is critical and intricately tied to the health of the entire economy as a whole. Within the food & beverage industry, companies currently (and will continue to) face external challenges that have a direct impact on the industryâ&#x20AC;&#x2122;s overall performance and are beyond the control of each individual company. Some of these challenges include regulatory and/or policy changes, trade barriers, demographic changes and alterations in the competitive landscape. It is increasingly important that companies effectively identify, track & react to their everchanging business environment and implement strategies to ensure that they stay on the top. These challenges can pose as threats to some companies that are incapable or unwilling to adapt to changes in their external environment, and as a result, may lose their marketshare.

Modern Food Processing | September 2010

However, these same external challenges may act as opportunities for some companies that are willing to proactively resolve them.

Primary challenges With respect to the global food & beverage industry, the three primary challenges faced by companies include: increasing globalisation & changing economics; the growing need for health and wellness solutions; and the growing sensitivity to food safety & sustainability issues. By 2020, companies that have a truly global market & product strategy; fully exploit the growing demand for health & wellness solutions; and have adopted an all-encompassing sustainability & safety strategy will be the global leaders in the food & beverage industry.

Globalisation & changing economics One of the biggest global economic stories of 2008 was the exponential increase in feedstock, food and other commodity prices. This phenomenon had induced the growing occurrence of food-related social, political and business instability in many parts of the world. The continuing price rise trend is the result of the

MARKET UPDATE

synergy of multiple challenges affecting the food economy as a whole. For example, the 2008 price bubble resulted from the rise in consumer demand in developing economies; multiple shocks to feedstock supply due to weather conditions; and changing demand patterns for bio-based feedstock. Once the global economy is back to its historic steady-state growth rates and the demand for petroleum again outstrips production, food prices will be on the rise again. The domestic demand for food is accelerating in emerging markets, which is driving global food feedstock prices. From 2002 to 2009, food & beverage spending in the Asia-Pacific region grew at compounded annual growth rate of over 11 per cent due to economic rise of China and India over the last decade. The region will surpass $ 5 trillion by 2013, accounting for over a third in global food & beverage consumption. Nearly one-quarter of this spending will come from China alone. By 2014, the demand for food products in the Asia-Pacific region is likely to surpass consumer demand in North America and Europe combined. Not only will the region consume increasing levels of grains, but also meat and dairy products, further putting a strain on future feedstock inventories. In addition, the current and future supply of food is highly dependent on

climatic impacts. During the 2008 food price bubble, the US summer storms resulted in a huge loss of corn and soya products. With Europe facing unusually high summer temperatures and the current wild fires in Russia devastating a significant portion of its wheat crop, it is likely that global feedstock prices will again be on the rise through 2011. The largest factor impacting the food prices will be the rise in petroleum costs. Agricultural production is heavily dependent on the need for fuel.

By 2014, the demand for food products in the Asia-Pacific region is likely to surpass consumer demand in North America and Europe combined. With the re-emergence of the economy from the recent recession, the worldwide growth in demand for petroleum will rise and in turn will drive agricultural input costs. Given these external factors, the shift to biofuels from food feedstocks appears to be an attractive option in order to mitigate current and potential geopolitical risk related to petroleum. Consequently, increased volatility in feedstock prices will

2009 NA 11%

EU 22%

LA 14%

2014 MEAF 21%

NA 10%

LA 15%

MEAF 22%

EU 20% APAC 32%

APAC 33%

NA: North America, EU: European Union, APAC: Asia Pacific, LA: Latin America, MEAF: Middle East & Africa Note: All figures are rounded; the base year is 2009 Source: Frost & Sullivan

Figure 1: Food & beverage retail sales by region in 2009 and 2014

continue through the next decade, especially in terms of soya and corn prices.

Health & wellness Over the next decade, the demand for healthier food & beverage alternatives will continue to grow. The increasing willingness of proactive consumers to seek food items that avoid product negatives and contain healthy attributes drives this growth. Increasing media attention on the growing obesity problem and rising incidents of cardiovascular diseases have had an irreversible effect on consumer awareness related to health & wellness. This is affecting purchasing behaviour among consumers, which in turn is driving the rapid growth of food products that promote health & wellness. Despite this growth in demand, some manufacturers today are not able to fully meet the increasingly excess demand for a cost-effective healthy alternative, though this trend is likely to diminish significantly by 2020. Many food & beverage manufacturers already understand that the need for healthier alternatives increases with rising market development, industrialisation and urbanisation. At a macro level, the aggregated spending on meat, poultry and sugar per region generally increases with increased market development. This suggests increasing odds of heart disease and a higher incidence of weight management issues in economically developed regions. In addition, the proportion of spending on fruits and vegetables tends to decrease with increased market development, suggesting less nutritious diets with increased economic development over time. Because there is a strong positive correlation between industrialisation & urbanisation and also between rates of obesity & urbanisation, there is a likelihood that future opportunities for suppliers of healthier food products will emerge in regions, which are rapidly

September 2010 | Modern Food Processing

MARKET UPDATE

100% 90%

7.1 5.5

6.6 5.5

7.4 5.7

30.0

29.2

28.6

25.9

19.0

24.3

26.4

27.1

26.5

14.6

14.0

15.5

14.2

20.1

18.4

17.7

16.6

20.2

APAC

MEAF

8.9

8.0

3.2

4.6

34.1

80% 70% 60% 50% 40% 30% 20% 10% 0%

Bread & grains

Dairy

Fruits & vegetables

Meat & poultry

Fats & oils

Sugar & sweeteners

Note: All figures are rounded; the base year is 2009 Source: Frost & Sullivan

Figure 2: Product category share of revenues per region (2009)

growing in terms of industrialisation & urbanisation. Going forward, the food industry will be looking to expand in increasingly urbanising countries, where dietary changes and economic development are likely to drive growth for health & wellness solutions. The food & beverage industry is increasingly shifting away from promoting food product health claims of reduced ‘bad’ alternative (such as ‘reduced fat’, ‘reduced salt’, ‘low sugar’, ‘no cholesterol’, etc) to promoting its food product as being a healthier alternative due to its inclusion of a given additive (‘added goods’). For example, dairy product offerings are increasingly being promoted as being fortified with probiotics or Omega3 DHA. In fact, global fortified dairy product sales grew 11 per cent versus only 5 per cent for global reduced-fat dairy product sales in 2007. In addition, fortified dairy product sales growth continues to outpace that of reducedfat dairy products today.

Food safety & sustainability It is expected that the adoption of an effective food safety and sustainability strategy among food & beverage suppliers will be common place as

opposed to being the exception by 2020. Sustainability, in a broad sense, is the ability to maintain a given process or state. In an ecological context, sustainability is the ability of an ecosystem to maintain ecological processes, functions, biodiversity and productivity in the future. With respect to business functions, the economic bottom line, social responsibility and environmental awareness are the key processes that should be sustained. A company that is perceived to be socially-responsible can have a sustainable competitive advantage, if the consumers’ willingness to pay delivers to the company a return that is appreciatively greater than the additional production costs. Food & beverage manufacturers continue to face an array of challenges in this area. For example, they need to comply with a plethora of voluntary food safety standards and varying mandatory government regulations, which have been an inhibitive factor on the emergence of a harmonised global food industry safety standard. Even though the benefits of adopting sustainable business practices seem apparent, the diffusion of adoption among companies still has a long way to go.

Modern Food Processing | September 2010

Many manufacturers have trouble observing the tangible benefits from adopting sustainable business practices, and in turn, communicating those benefits to their customers. Also, a strong information disconnect currently exists between customers and companies because of the lack of information about what green products are; weak communication infrastructure for evaluating the greenness of products; and a general poor understanding among consumers of how to rate a given product’s actual ‘greenness’. The food manufacturers that invest in these communication elements will achieve a competitive advantage.

Conquering the food & beverage ingredient markets Given below are five key areas that all food & beverage manufacturers ought to consider in order to build a sustainable competitive advantage: R Invest in marketing strategies that focusses on core product offerings R Utilise and exploit opportunities from consumer feedback and understand the consumers’ motivation for buying a product R Establish mutually-beneficial partnerships with other suppliers R Adopt proactive product and service differentiation strategies R Effectively communicate the indirect costs of product switching The companies that effectively consider these strategic recommendations will emerge as global industry leaders over the next decade. Christopher J Shanahan is a Senior Food Industry Analyst and Consultant with Frost & Sullivan’s Global Chemicals, Materials & Foods Practice. His work and expertise includes research in the areas of functional ingredient markets, including Omega-3, probiotics & prebiotics and weight management ingredients, for the dietary supplements, food & beverage products, and animal feed products. Email: christopher.shanahan@frost.com

MFP_Sept _2010_ Engg Expo_Tab-1_PG_31

MFP_Sept _2010_ Engg Expo_Tab-1_PG_32

TREND ANALYSIS

Indian food processing sector

Blending the right ingredients In spite of being one of the world’s largest producers of food commodities, India’s share in the global trade is too small (just 1.5 per cent). While opportunities are immense, so are the challenges. Industry, with support from the government, will have to put in consistent efforts to corner a bigger pie of the global food processing industry. Courtesy: Driftless Appetite

D R Dogra

ndia is the world’s second-largest producer of food next to China, and has immense potential for growth in the food & agriculture sector. It is the largest producer of milk, pulses, sugarcane & tea, and the second-largest producer of wheat, rice, fruits & vegetables in the world. At the same time, as a consequence of huge population, the country accounts for a large share of food item consumption. As a result, its share in international trade amounts to only 1.5 per cent. The Ministry of Food Processing Industries (MoFPI), Government of India (GoI) has estimated the size of the Indian food market in FY10 at $ 191 billion.

Market composition The food processing industry comprises sub-sectors like fruits & vegetables, milk & milk products, alcoholic beverages, meat & poultry, marine products, grain processing, packaged or convenience food and packaged drinks. In India, the food processing started in early days in households, with processing of pickles, papad, traditional syrups, etc. Over the years, with changes in the preferences

Modern Food Processing | September 2010

of people & demographic profiles, increase in the spending capacity & urbanisation and rise in nuclear family structure, especially in the urban areas, the food processing industry gradually developed.

India’s competitive advantage India has the largest arable and irrigated land with availability of abundant raw materials favourable for food processing industries. Over the years, India has achieved remarkable success in dairy and agricultural sectors. Moreover, there is an ever-increasing domestic growth potential on account of the rising population. In addition, the relatively low-cost workforce can be effectively utilised to set up large, low-cost production base for corporates in the domestic and export markets. In order to tap the growing sector, there has been huge investment inflow by domestic as well as foreign companies. India is slowly moving towards standardisation of procedures through R&D activities. The various research institutes, viz Central Food Technological Research Institute, Central Institute of Fisheries Technology, National Dairy Research Institute,

TREND ANALYSIS

National Research and Development Centre, etc, were set up to provide the technology and development support to the food processing industry.

Organised retail In order to tap the huge growing market for the processed foods, an efficient marketing system is necessary, which can lower the post-harvest losses, provide graded processing, packaging services & food safety practices, increase demand for high value-added processed foods, induce demand-driven production and promote exports. The GoI has been encouraging public-private partnerships in addition to private investments in this sector. The organised retail sector has been making good investments in the various facilities, like storage, processing, distribution systems, etc, so as to compete with the unorganised sector. The emergence of organised retail in the recent years has resulted in an increase in demand for quality goods.

Backward integration business model The entire value chain of food processing industry starts with growing & sourcing raw materials and moves on to food processing companies to the end-consumer. In the past, there were players operating at various levels independently. Recently, there is change in the trend wherein the food processors are entering into backward integration by establishing linkages between farmers and logistics service providers. The two business models evolved are â&#x20AC;&#x201C; contract farming and terminal markets.

Contract farming In contract farming, the food processing company enters into an agreement with the farmer, wherein the farmer is contracted to grow agri-goods for the company on his land. The terms of agreement include the quantum of harvest produced, contracted acreage, anticipated yield and pre-agreed price. The company provides the inputs in

terms of technology to be used and training to the farmers to improve the yield & quality of the produce. Such kind of agreement results in steady source of income for the farmer and assured supply & good quality of output for the company. The GoI has been promoting this business model, thereby encouraging the private sector participation resulting in technology transfer, capital inflow and mitigating uncertainties for crop producers.

Terminal markets A terminal market, often located in metro cities, is a central site where the agricultural goods are assembled and traded. This business model offers different options to the farmers under a single roof. Under this model, the agricultural produce can be sold to the end-consumer or to the food processor, packed for exports or even stored for disposal at a later date. The terminal operates on hub and spoke model where the markets are the hubs and are linked to different collection centres (spokes) that are located close to the production centre. The government is promoting this business model to integrate the agricultural produce to the retail chains. It plans to set up such markets in eight cities across five states, viz Mumbai, Nashik, Nagpur, Chandigarh, Rai, Patna, Bhopal and Kolkata.

pulses) and tea in the international markets. Another category of processed food items, which is gaining momentum in the recent past, is readyto-eat segment, wherein cooked food can be prepared in a short duration. It is finding demand from expat population of Indian origin in countries like the US, UK, Singapore etc. In the recent times, there is a shift in the food habits in the developed countries, from high carb food to organic food and diet food. Thus, in addition to the above products, there will be demand for processed organic and diet food in future.

Issues to tackle The challenges for food preservation, distribution and processing sectors are diverse; some of them are cited below: R Educating and creating awareness among the consumers: The traditional Indian belief that fresh food is healthy needs to be changed R Competitive pricing: The consumers are extremely pricesensitive. Thus, slightest variation in the price can have substantial impact on the sales. The competitive pricing may also enable producers to tap the rural market

Overseas opportunities In the current globalised market, the surplus food production and preference for Indian food has resulted in increased exports. There is an evergrowing demand for processed food like pickles, chutneys, concentrated pulps & juices, canned fruits & vegetables, dehydrated vegetables & frozen fruits & vegetables, processed meat & poultry products, milk & milk products (viz milk powder, packaged milk, butter, ghee, cheese and readyto-drink milk products), grains (viz rice, jowar, bajra, maize, wheat, gram and

September 2010 | Modern Food Processing

TREND ANALYSIS

Brand competitiveness: There is huge demand for hygienic branded products at reasonable prices in the domestic market R Product innovation: The consumers are constantly expecting innovation in the ready-to-eat products in terms of flavours, quantity offered, etc R Need for efficient entire supply chain, ie from farm to retailers/consumers: The unprocessed foods are susceptible to spoilage due to their inherent perishable nature. Implementation of post-harvest practices such as good processing techniques, proper packaging, transportation and storage (of even processeed foods) plays a significant role in reducing the spoilage and extending shelf-life R Scale of operations: Majority of food processing units are small-scale, and are unable to exploit economies of scale

Governmentâ&#x20AC;&#x2122;s active support In order to provide impetus to this sector, the government has undertaken several initiatives viz: R Priority sector status for bank lending R Exemption/reduction of excise duty on certain products R Setting up of mega food parks R 100 per cent FDI through automatic route for most of the processed food products. With the objective of trebling the size of food processing industry to $ 300 billion by 2015, Ministry of Food Processing Industries has formulated a Vision 2015 document whose measures include: R Expanding Indiaâ&#x20AC;&#x2122;s share in international food trade to 3 per cent by 2015 from current 1.5 per cent R Increasing the level of processing of perishables from 620 per cent R Increasing the share of value-added products in food consumption from 16-50 per cent R Increasing value-addition from 20-35 per cent

Growth recipe The development of the organised retail chain, backward integration models adopted by the food processing companies and plans of local/regional players to expand at pan-India level will provide further boost to the sector. Further, support from the government by providing various incentives would attract investments in the sector, particularly through the FDI route. D R Dogra is the Managing Director & CEO of CARE Ratings, a leading credit rating agency in India. He has over 31 years of experience in commercial banking. Dogra has been an integral part of the top management team of CARE and plays an active role in shaping the strategic direction of the company. For details, contact Padmaja Parange on email: padmaja.parange@careratings.com

Modern Food Processing | September 2010

STATUS REVIEW Automation

“Manufacturers are looking towards optimising their production”

Sunil Khanna is the Managing Director of Emerson Process Management India. He is also the President of Automation Industry Association (AIA) - an apex body of all the leading automation companies in India. Khanna has been involved with the process automation industry for more than 25 years. Before Emerson, he worked with ABB for 22 years handling various key responsibilities. In this interview with Rakesh Rao, he discusses the importance of automation for the growth of food industry.

Importance of automation…

Making food safer…

The Vision 2015 of the Government of India for the food processing sector aims at providing greater assurance in terms of safety and quality of food to consumers. Moreover, the other objectives include promoting a dynamic food processing industry, enhancing its competitiveness in both domestic as well as international markets, making the sector attractive for both domestic & foreign investors and having a transparent & industry-friendly regulatory regime. The automation industry has a major role to play to achieve these goals.

Traditionally, the industry and regulators have depended on spot-checks of manufacturing conditions and random sampling of final products to ensure food safety. This approach, however, tends to be reactive, rather than preventive and can be less efficient. Automation helps in analysing hazards, identifying critical points, establishing preventive measures with critical limits for each control point, monitoring control points and ensuring effective record-keeping for tracing back and resolving complaints.

Growing demand… With the intense, relentless competitive pressure and changing regulatory requirements affecting the food industry, manufacturers are looking towards optimising their production and material handling process. In an industry that has been slow to embrace automation and control, unlike other process industries, the biggest obstacle to achieving higher levels of optimisation, is the unscheduled plant downtime. Often, the most costly factors of unexpected downtime involve the combustion systems used throughout the manufacturing process. Unexpected shut downs are primarily caused by unscheduled machine trips, old, unreliable or unsupported control systems and defects in the control system design. It is here that automation can help in predictive maintenance, so that corrective actions can be taken and unscheduled outages can be minimised.

Modern Food Processing | September 2010

Impediments on the way… One of the main challenges is that the food industry in India is relatively unorganised barring the presence of a few major multinationals and transnational companies. Traditional family-owned companies are reluctant to invest in the capital expenditure required for automating their plants. But this trend is changing today, as the market is becoming more competitive and consumers are quality-conscious.

Emerging trends… Process efficiency in the food industry can be achieved by incorporating advanced technologies that lower unit costs and improve overall product quality, contributing to higher profits. Finding ways to reduce the number of unskilled human links in automatic material handling systems, could be an important breakthrough in reducing workplace injuries, resulting from highly repetitive activities. Developing better methods of food production and enhancing the nutritional value of foods are also gaining attention.

STATUS REVIEW Bakery

“Enhancement of the nutritional profile in bakery products is a key trend” Bakery market scenario…

Prakash Nair is the National Sales Head at Monginis Food Pvt Ltd. He has over 17 years of experience in sales & market development, planning, operations, logistics and team management. He is credited for having introduced the extended food counter of Monginis in various corporate cafeterias within a short period. In conversation with Mahua Roy, he discusses the innovative trends within the bakery industry.

The global bakery market is estimated to be worth $ 407 billion. In India, it amounts to ` 6,000 crore with a CAGR of 7 per cent. The Asia-Pacific is the fastest growing region with a CAGR of 6.93 per cent. The present day consumer looks for new bakery products, better appeal, taste and convenience from bakery products. With a population of over one billion, India has the largest proportion of middle-income consumers. Opportunities exist in abundance in bakery cafes and restaurants. Fast foods segment is another high-growth sector in India.

Emerging trends… The emerging trends in this industry include low/light, functional and organic products. Low/light products have reduced fat and carbohydrate content. With the growing incidence of obesity and popularity of the concept of dieting, low calorie foods have gained prominence. Capitalising on this trend, manufacturers are developing products with smaller portion sizes. Similarly, wholemeal, multigrain and other such products are now gaining a strong foothold. This healthy product development trend is aided through the provision of added fibre. In recent years, enhancement of the nutritional profile in bakery products is a key trend. This is being achieved through the addition of functional ingredients, such as Omega 3, prebiotics, multivitamins and phytosterols. Increasing concern over the consumption of artificial ingredients

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has fuelled the demand for natural products. Organic bakery is yet another category gaining momentum in recent times and the products are clearly labelled to draw attention to their organic nature.

Convenience and pleasure… Convenience foods are now more in demand in the market because of the changing eating habits and busy lifestyles, where the pressures of time have resulted in increased on-the-go consumption. Also, the emerging trend towards consumption of healthy snacks has increased the demand for convenience products with combined health benefits and good quality. The convenience trend has also increased consumer interest in easy-to-prepare baked products, where part-baked or frozen dough is used. In addition to healthier products, consumers also are purchasing products that satisfy their taste buds. On-site manufacturing of bakery products in bakeries and supermarkets directly contributes to this trend, as it is well-established that the smell of freshly baked breads and other products is a strong motivational factor in subsequent purchases.

Steps to be taken… The industry should aim at improving profitability by concentrating on increasing net profit as a percentage of sales, investment and common stock. It can increase volume by maximum production utilisation. The industry can also help to conserve the environment by following eco-friendly measures.

STATUS REVIEW Beverages (Alcoholic)

“Wine industry to grow 25 per cent YoY for the next 25 years” Vision 2015 document… I believe it is a right step in the right direction. India has tremendous potential in the food processing sector and such an initiative will take the industry to a new height.

Another problem is the dearth of skilled manpower. This is because the wine industry is currently at a nascent stage. And to address the issue, the industry needs to rope in foreign help for interim period. There is also a need to upgrade technology for better yield.

Wine market in India…

Kapil Grover is the Managing Director of Grover Vineyards, one of the country’s premium and leading wine makers. After doing his MBA from Switzerland, he joined Grover Vineyards in 1982. In 1988, the company established its first ever vineyards in Karnataka over 40 acre of land. He is responsible for making Grover Vineyards one of the leading Indian exporters of wines. Here, Grover shares his views on the sparkling world of wines with Prasenjit Chakraborty.

Two years back the wine segment in India was rather stagnant, however, the situation has changed now with increase in demand. At present the wine market is booming with surge in demand. The Indian wine industry is often referred as 25:25, which means the industry has the potential to grow 25 per cent year on year (YoY) for the next 25 years. The increase in the disposable incomes and opening up of wine bars in different cities in India will certainly fuel the growth of wine industry.

Hurdles faced by the wine industry… In our industry the most challenging task is to get high quality wine grapes. To overcome the challenge people involved in the industry should interact with farmers on a large scale. In this direction, we tied-up with farmers and persuaded them to support our efforts. An inadequate knowledge in terms of technology used for the growth of superior quality of grapes leads to slow progress in this area, which makes the process time-consuming and cumbersome. Other than this, one needs to work even harder with the quality of grapes available in India. Most importantly, the absence of uniformity in the laws, duties and taxes levied on the wine industry is discouraging for the growth of this industry.

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Export potential… There is a lot of scope for Indian wine abroad because of the popularity of Indian cuisine worldwide, particularly in the UK, the US, Europe and Japan. There has been an upswing in the Indian wine exports in the last few years, which is indicative of the immense potential that our wines have abroad. At present, few of our wines are rated as good wines worldwide. In fact, the word about our wines being at par with the global standards is spreading fast, thereby creating awareness and establishing a name in the market internationally.

Help from the government… Most importantly, the absence of uniformity in the laws, duties and taxes levied on wines is discouraging for the growth of this industry. We have been saying that wine should be de-linked from alcohol. Today, alcohol is the state subject and the Centre has no role in it. Many have wrong notion that wine and alcohol are same; but it is not. Wine segment provides huge benefits to farmers, besides health benefit. The government should take this into consideration.

Outlook for the wine industry… We are optimistic about the future of the industry till 2030. The wine segment is expected to grow rapidly.

STATUS REVIEW Beverages (Non-alcoholic)

“India’s beverage market is dynamic and holds huge potential” Prospects of the Indian food processing industry…

Asim Parekh is the Vice President – Technical at Coca-Cola (India and South West Asia). He is responsible for product and package development, scientific regulatory affairs, quality, environment & safety management and supply chain. He has been in the industry since 19 years and has served in leading companies such as Cadbury, PepsiCo, Danone India and Britannia. In conversation with Mahua Roy, he talks about the trends in the nonalcoholic beverages sector.

The Vision 2015 document of the Ministry of Food Processing Industries (MoFPI) advocates steps that will help India to increase the level of food processing and enable industries in this domain to leverage, both the domestic and international markets to their advantage. It also aims at enhancing and stabilising the income level of the farmers. As a beverage company, we believe that the public and private sector can work together to help the industry realise its true potential.

Market and growth drivers… According to independent beverage industry reports, close to 120 billion litre of beverages gets consumed in India annually. Of this only 4 per cent is consumed in the packaged ready-to-drink form. This demonstrates the immense opportunity for beverage companies in the sparkling and still segments. India’s beverage market is dynamic and holds huge potential, which as an industry we are just starting to unlock. The key to growth is to be able to provide consumers with the product of their choice at the right place, right time and right price.

Hurdles to cross… The non-alcoholic beverages industry faces the same challenges as the overall processed food industry does. These include the challenges of a long and fragmented supply chain; lack of adequate infrastructure like roads, transportation facilities, cold chains, etc; poor quality of raw materials; fragmented land holding pattern of Indian agriculture that reduces costs

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and increases efficiency, etc. The way forward is, all stakeholders should come together and address these issues for the processed food industry to prosper.

Emerging trends… Some of the distinct patterns that have emerged over the last few years are: R Increasing demand for packaged foods due to change in lifestyles. Urban lifestyle is fast and on-thego, resulting in consumers choosing packaged food products and beverages for convenience R Consumer demand for a wider portfolio of products and packs. Hence, beverage companies offer a wide range of choice to consumers ranging from sparkling beverages to still beverages and energy drinks R Consumer demand for high quality, better tasting products and superior product quality is no longer a differentiator. It is the bare minimum that the consumer expects from reputed companies and brands R Consumer preference to associate with brands and companies that are socially responsible & relevant. Being a company, which has sustainability ingrained into its business model, we hope that we will continue to be preferred by our consumers

Demand outlook… The growth in this sector has been led by continued focus on product innovation, investments on brands, technology, infrastructure and consumer marketing. Going forward, we too plan to continue our investments in our system to build the health of our brands fuelled by world-class marketing and innovation.

STATUS REVIEW Confectionery

“Product development and innovation is the need of the hour” Vision 2015 document, a boon or bane… Vision 2015 seems to be an attractive proposition. However, when it comes to implementation, the road ahead is fraught with challenges. It remains to be seen how much the government can fulfill the vision.

Required steps… B K Gurbani is the Chairman & Managing Director of Sampre Nutritions Ltd. A commerce graduate and a first generation entrepreneur, he started his business as a small confectionery unit with just 10 people. The group presently employs a workforce of 500 people with four manufacturing units. In an interview with Prasenjit Chakraborty, he talks about the future prospects for the confectionery industry in India.

To achieve the goals (of this vision), the government must understand practical difficulties faced by the manufacturers. The government must work in close co-ordination with the different associations in the food segment. Apart from this, the government must ensure the availability of raw materials and packaging resources. These must be available without extreme fluctuation that the industry is facing at this point of time.

Market scenario… Currently, the confectionery industry is close to ` 2,000 crore, and is passing through a tough phase. Since the last two years, raw material prices, especially the cost of sugar has eroded the entire profitability of the industry. Sugar accounts for almost 65 per cent of raw materials that are used in the confectionery industry. The legislation and statutory norms, which are becoming stringent day by day, are adding to the cost directly.

Challenges faced by the segment… The unorganised sector is posing a serious threat to the organised sector. The size of the unorganised sector is more than double when compared

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to that of the organised sector. Again the VAT component is also high in confectionery category. To reduce the cost, several representations have been made for exemption of excise duty on confectionery by industry associations.

New avenues for growth… From the new market angle, most of the companies are exploiting rural markets that are still untapped. This is because companies are seeing huge growth potential in these markets. Product development and innovation is not only the key word, but it is also the need of the hour, as consumer perception and demand keep changing every now and then.

Issues to be addressed … The confectionery segment is never considered as a priority sector by the government. The consumer awareness about confectionery products is growing day by day. But the government needs to keep a tab on all imported confectionery items, coming from grey market channels. Even banned hardboiled candies are available from grey channels, and sold in cities. The government has no control over imports, which are impacting the performance of local industries. The development of new products will be a difficult task, until the industry roped in new technology. In the past few years very few product categories like caramel eclair have witnessed high growth. Therefore, the government must delve into the problem areas in this industry and extend incentives, which will lead to the growth of the confectionery industry.

STATUS REVIEW Dairy

“Dairy business will witness enormous growth in the next 5-10 years” Emerging trends…

A S Premanath is the Managing Director of Karnataka Milk Federation (KMF) - the second largest co-operative in India, which markets its products under the brand Nandini. Prior to this, he served as the Director – Marketing. He also served as the Managing Director of The Mysore Co-op Milk Producers Societies Union Ltd. In an interview with Geetha Jayaraman, Premanath talks about the present scenario in the dairy industry.

Dairy segment holds a prominent place in the food industry of India. We are the world’s largest milk producer, accounting for more than 13 per cent of the world’s total milk production. The dairy industry in India has been growing at a steady pace over the past few years and has witnessed a shift towards healthier products in the recent past. People today are becoming increasingly health conscious. But there is still a growing demand for dairy products like butter, ghee and cheese. Consumers are becoming aware about the advantages of these products and have realised that one need not avoid a particular product simply because it has high fat content. Instead, people are keeping a watch on the quantity they consume and try to maintain a balanced diet. As dairy products are per se healthy products, we are at an advantage. While the demand for probiotic and low-calorie products is increasing, consumers are also looking at consuming low-sugar products. Further, the demand for poly-packed milk vis-à-vis loose milk is a trend that has been witnessed in the recent past. The distribution of milk is gradually moving from the unorganised to the organised sector.

Roadblocks on the way… Inefficient supply chain management and cost of production, resulting in higher product prices are some of the challenges faced by the industry. Since dairy products are perishable goods, better cold storage facilities to maintain the quality of the product are imperative. If India has to emerge as an exporting country, it is essential that we develop proper production, processing

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and marketing infrastructure, which is capable of meeting international quality requirements.

Growth strategies… There should be more public-private partnership initiatives to boost the food processing industry. When it comes to the development of dairy segment, cooperatives serve as the best solution. Gujarat and Karnataka co-operatives have proved to be success stories and other states need to follow suit. At the same time, the government should build modern infrastructure facilities to improve the present condition of the dairy industry.

Vision 2015 document… The Vision 2015 document paves a path for the food processing industry. It predicts huge growth opportunities for the sector in the coming years. As a result of the government focus on different areas of the food processing sector, which needs improvement, the industry is all set to witness growth and it is hoped that the vision will turn into a reality.

Future prospects… The future of this industry appears bright. There is a shift towards branded milk due to which dairy segment is experiencing high growth rates across the country. Dairy business will keep growing at this rate or even faster in the near future. The Indian co-operatives are expected to play a prominent role in the dairy industry in future as well. Besides, the demand for fresh dairy products like curd is also showing healthy growth. Thus, the dairy business will witness enormous growth rates in the next 5-10 years.

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Edible Oils STATUS REVIEW

“The edible oil industry will grow faster than many FMCG categories” Market for edible oils… India is among the top five edible oil economies in the world. The country has a large appetite for edible oils, thus making it a net importer of oils. It imports more than 70 per cent of its domestic requirement. Edible oil sector is stable due to the continuous growing demand, fuelled by India’s growing per capita GDP. At the same time, the packaged oil market is growing constantly due to the rise in consumer awareness. This sector is likely to witness robust growth in the coming years.

Changing consumption pattern… India consumes both, exotic and refined oils. In the exotic segment, mustard oil takes the top position. The oilseed deficit in the Indian market is likely to continue, since production is declining as compared to the strong growth in demand. To meet the growing demand, the government has reduced duties on crude edible oils – a trend that the agency believes will be sustained. With a shift in consumption patterns in India towards the relatively cheaper palm oil, many larger operators are also increasingly shifting their focus.

Gaining health consciousness among consumers... Domestic prices of various edible oils are largely correlated. Palm oil, being the cheapest, impacts the price movement of other oils. The marketshare of soya & palm oils

have gained significantly over the years, due to the increased access to imports. The increase in demand for soya and palm oils reflects the Indian consumers’ sensitivity to prices. The present health-conscious consumers, who used to prefer vanaspati instead of packaged oil earlier, are now opting for the latter. The development of the retail sector, backed by rising income levels, has taken its toll on the market, which once accounted for nearly 50 per cent of non-packaged oil in both, urban and rural markets. This has also provided an opportunity for big brands to sell in the urban markets.

Impact of the global oil industry… The domestic edible oil industry is trying to cope up with international prices. This has resulted in farmers not getting remunerative prices for oilseeds. This has been a cause of concern and the government should take adequate steps to revive farmers’ interest in oil seeds. We have to ensure that we do not exceed our dependence on imported edible oils.

Rajesh Gupta is the the Chief Executive Officer of Suraj Group one of the major players in edible oil and vanaspati segment. A post-graduate in science and management, he has 32 years of experience working with companies like DCM Shriram and other leading names. In conversation with Geetha Jayaraman, Gupta discusses the changing dynamics of the edible oil industry and its growth potential.

Future demand… The edible oil industry will be competitive and will grow faster than many FMCG categories. Packed goods industry will further gain momentum, as there is a definite shift from loose oil consumption even in rural India. There is a huge opportunity for healthy blended oils in the near future.

September 2010 | Modern Food Processing

STATUS REVIEW Fish Processing

“India should try to tap the abundant opportunities in tuna fishing” Status of fish processing industry…

M R Francis is the General Manager of Naik Frozen Foods Pvt Ltd, one of the leading players in the value-added seafood sector in India. During his 34 years of experience in the fish processing industry, he has worked as the Director of Refrigerated Distributors Pvt Ltd, and Partner of Nine-up Frozen Foods. Francis talks to Rakesh Rao about some of the key developments in the fish processing industry and the competitiveness of the Indian industry.

Vision 2015 document for marine products export industry envisages a long-term goal and lays down the means to achieve it. It provides a development plan for the stakeholders and enables everyone to plan well for the future. It will open the doors for accelerated growth of the industry. The Vision identifies key sectors of the industry namely capture fisheries, culture fisheries, processing and valueadditions among others.

Achieving the goals of Vision 2015… Vision of processing is to abandon block-frozen products and encourage processing for ready-to-eat & ready-tocook products. For this, the government has to give more incentives for valueaddition and review incentives given to block-frozen products. The Ministry of Commerce Industry (MoCI) and Ministry of Food Processing Industries (MoFPI) can be of immense help for technology upgradation, import of latest machinery for value-added products by instructing Marine Products Export Development Authority (MPEDA) to move in this direction and give more economical assistance to processors for expanding their facilities and performing valueaddition. We should focus on areas like upgradation of packaging to a worldclass level and maintenance of hygiene & sanitation from catch to kitchen.

Stumbling blocks… One of the major challenges faced by the seafood industry is the mere 20 per cent utilisation of its capacity of 2.5

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million tonne/year. We have to import raw materials from other countries for reprocessing. Due to procedural delays by customs and quarantine departments, no one attempts to import raw materials. Setting up of Special Economic Zones (SEZs), one in each coast to promote production of value-added products and import of raw materials for making products for export, is the need of the hour. Another challenge for India is its poor condition of the landing centres across the country. All these centres should be upgraded to meet international standards. We have the capability to reconstruct world-class landing centres all over the coastal areas within a span of two years from now.

Growth potential… India should try to tap the abundant opportunities in tuna fishing by acquiring the latest technology for mapping, trapping and popularising the mono-filament long-lining system in a big way, in order to conver fishing vessel for long-lining. India can become a leading exporter of tuna, if we focus on these issues and address them systematically.

Future prospects… According to the projections of Food and Agriculture Organization (FAO), world’s capture fisheries will stagnate while aquaculture production will increase. It is projected that, by 2020, 40 per cent of the global fish production will come from aquaculture. Hence there is a need to promote large-scale aquaculture projects in Maharashtra & Gujarat, and other coastal areas in India.

STATUS REVIEW Flavours

“The global market for flavours is growing exponentially” Global market for flavours…

Gururaj Karur is the Country Manager-Flavours, Givaudan (India) Pvt Ltd. One of the world’s leading companies in the fragrance and flavour industry, Givaudan has presence in over 80 countries. Karur has been with the company since 2003. He graduated from the Indian Institute of Management, Lucknow, in 1992 and has over 15 years of experience in the food & beverage industry. Karur sheds light on the latest developments in the flavour industry during an interview with Rakesh Rao.

The vast majority of flavours are created specifically for the food and beverages industry. The global market for flavours is growing exponentially as the world recovers from economic slowdown. It holds huge potential in emerging economies like Asia, Latin America, Eastern Europe, Africa and the Middle East. This is driven by increased consumption from a growing population and wealthier consumers’ demand for new flavour experiences in a variety of food & beverages.

Major flavours in demand… Vanilla, citrus and chicken are the top three flavours globally, followed by mint, beef and dairy/cheese. Coffee and tea flavours are popular in Asia. Within these broad flavour groups, there are many variations, which are constantly evolving through new discoveries of ingredient sources, changing consumer preferences and pioneering R&D in taste technology related to salt and fat reduction, sweetness enhancement, bitterness masking, etc.

Regions offering high growth potential… Givaudan sales in the Asia-Pacific region for the first half of 2010 increased 10.6 per cent versus the first half of 2009, in local currencies. Similarly, our sales performance in Latin America again delivered a strong growth rate of 26.1 per cent although from a lower base. Africa and the Middle East have reported double-digit growth for the past several years. This indicates a plethora

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of opportunities in these regions for the flavours segment.

Market for natural flavours… Demand for natural flavours is increasing in Europe driven by consumer preference and EU regulations. North America, Asia and Latin America are starting to show a preference for more natural flavours. This is a global trend; we expect this to continue in the years ahead.

Challenges ahead… As health and wellness become increasingly important to consumers, we are helping our customers tackle challenges including the reduction of salt, fat or sugar without compromising on the flavour. Other challenges involve food legislation & regulations and sustainability.

Addressing the clean label issue… There are many trends emerging, but in particular, our culinary-led flavour creation is becoming increasingly relevant to food manufacturers, who are looking to address the ‘clean label’ concerns of consumers. In other words, we seek to create flavours that use more natural ingredients, making it easier for consumers to recognise the ingredients on the packaging label.

Growth potential… Our outlook is positive. We are wellplaced to enhance the business success of our food and beverage customers in both both, mature & fast-growing markets, like India.

STATUS REVIEW Ingredients

“Retaining consumer interest in a particular product is a big challenge” Worldwide market for food ingredients…

Melanie Galloway is the President - Food Technology Division of Kemin Industries. She oversees the sales, marketing, regulatory, operations and R&D segments of the business. Melanie holds a bachelor’s degree in chemical engineering from North Carolina State University, and an MBA from Duke University, North Carolina. In an interview with Mahua Roy, she talks about the global scenario of the food ingredients industry.

The global market for the ingredients sector is strong and evolving. While the economy has been slowing down in some regions over the last two years, the food & ingredients industry has not been affected in a significant way, food being a basic necessity. Moreover, the increasing consumption of convenience foods is having a positive impact on the industry. In other words, the growing popularity of convenience foods is a key driver for growth in the ingredients sector.

Factors driving the demand for ingredients… Worldwide, educated consumers are demanding cleaner and labelled products. The level of awareness among consumers is on the rise. These consumers are concerned about the effects of consumption of the various food products available in the market. We also see more emphasis on food safety, which has sparked the innovation and use of many new ingredients.

Impact of changing global regulations… While the focus is good for the poses difficulties monitoring and changes taking the world. New being introduced

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on food safety industry, it also in terms of addressing the place around regulations are that vary from

region-to- region and countryto-country, as well. As we say, consumers have choices and we know what is at stake. Science may be at the heart of everything we do, but in the end, we are consumers too. Retaining consumer interest in a particular product is a big challenge faced by every company.

Steps to be taken to meet emerging trends… Sodium reduction is a growing trend in the US market that is impacting ingredient suppliers. With the changes in the regulations, food manufacturers are going to continue the trend of reducing sodium levels in their products. Ingredient suppliers will need to help by maintaining a good flavour profile and product stability. They also have to concentrate on improving nutrition. Food manufacturers are becoming more concerned about sustainability in all areas of their business, right from packaging to ingredients. They are looking for suppliers who act responsibly in this area and we feel that, soon they will include this also as a part of their decisionmaking criteria.

Growth strategy… The future looks strong and growing. The industry should aim to provide innovative, market-driven technology that keeps food looking great, tasting delicious, remaining safe and fresh.

STATUS REVIEW Logistics

“There will be a dramatic change in the sector in the years to come” Vision 2015 document…

Ajay S Mittal is the Chairman & Managing Director of Arshiya International Ltd and has a diverse leadership experience across many industries. He did his MBA from the US, and upon returning to India, created new business entities in international trading, logistics and IT. The turning point in his career came when he identified the glaring gaps in the logistics chain and set up Arshiya International. He speaks to Prasenjit Chakraborty on food logistics scenario in India.

Every year, food worth ` 35,000 crore gets wasted, which is not a healthy trend. The loss is mainly due to poor logistics. Arshiya is going to take steps in this direction. We understand that we cannot address the issue alone because magnitude of the problem is huge. We are going to open many cold storages in the country and also invest in rail infrastructure to have reefer containers to transport food products effectively, so that they do not get spoiled in the supply chain.

Food logistics market… The scope is tremendous. I think, so far, the food logistics segment in India has been totally ignored. Whatever we do (in food logistics) in the next 10 to 12 years will not be sufficient to address the problem. People are now realising the importance of logistics and reputed food companies are aiming to provide efficient logistics services. This calls for a need of huge investment in the food logistics sector.

As far as logistics infrastructure is concerned, there is huge dearth of cold storages as well as reefer containers in this country.

Emerging trends… One has to invest in right infrastructure. All kinds of technologies are available and one should know where to invest. In cold storage, chillers and freezers are in huge demand, which are available indigeniously. You do not need to go outside the country to avail of the technology. I do not think that technology is going to be an impediment. What is needed is IT infrastructure and we have implemented it.

So much potential, yet not up to the mark… Logistics per se was not given importance till recently. Now people are looking at logistics, rather waking up to its potential. To be more candid, logistics is one of the most talked-about subject in the country.

Outlook for food logistics… Challenges faced… The biggest challenge is infrastructure. For example, a huge amount of red meat is being exported from Meerut area (in UP) to the Middle East and Europe. But a substantial quantity of meat gets wasted because of time factor – from the despatch area to reefer container. The wastage is purely due to infrastructure problem. The country is facing problems on two fronts – general infrastructure as well as logistics infrastructure.

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There will be a dramatic change in the sector in the years to come. This is because our eating habits are changing day by day. We are no longer a society depending only upon farming. People, especially working men and women, do not find ample time to cook, and hence, they will be depending more on processed food. And here logistics plays an important role. All these indicate a huge scope for the food logistics sector in India.

STATUS REVIEW Machinery

“The challenge is to develop technology for local produce” Views on Vision 2015…

V Gokul Das is the Managing Director of HRS Process Systems Ltd, a wholly-owned subsidiary of HRS International, UK. A Chemical Engineer from Laxmi Narayan Institute of Technology, Nagpur, he has over 20 years of hands-on experience in marketing, design, process engineering, business development, etc in various industries including food processing. Gokul Das shares his views on the performance of food processing machinery industry with Rakesh Rao.

The Ministry of Food Processing Industries’ Vision 2015 document is an ambitious, well-thought-out document, with the potential to infuse growth in this sector. In view of that, the government can look at creating nodal agencies for each primary sector, with planned budget outlay for development of infrastructure, technology and skilled manpower. The industry should imbibe new technology and invest in R&D, which can be in collaboration with institutes or independently. We also have to invest in educational institutes, which can create the skilled manpower needed for promoting innovative technology and R&D.

Status of food processing machinery industry… Food processing machinery industry has seen a major change in the past few years with the advent of better technologies. However, most of these machines are developed in foreign countries, where the products processed are different and hence, need local adaptation, which sometimes is not easy. Therefore, the challenge is to develop and adapt technology for the local produce.

Growth drivers… With growing urban population and availability of higher per capita disposable incomes, each sector within the food processing industry will witness a sound growth. However, the growth in the fruit processing, beverage and value-added dairy products will be tremendous not only

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due to increasing demand, but also due to increasing health-consciousness. India is also one of the world’s largest food producers with a vast untapped agricultural land and produce. All these factors make India a prime location for global machinery manufacturing hub in the coming years.

Competitiveness of the Indian machinery manufacturers Indian food machinery manufacturers are competitive in the global arena for low-key fabrication or simple machinery. However, the technology used is almost outdated. The global market has machinery with high end technology, automatic controls and high capacity for processing, which not only reduces spoilage of produce and processing cost, but also provides better quality products. Some companies (including HRS) are making headway into high technology processing by indigenising global technology. Food being a perishable commodity, the emerging technology is focussed on processing quickly and packaging efficiently to reduce contamination.

Growth prospects… Food processing machinery has bright prospects in the coming years. This being attributable to all positives for a growing economy, viz, changing consumer tastes & preferences, higher population with more disposable income, investment in agriculture & better post-harvest technology, infrastructure like roads, cold chains, higher quantity of quality produce available for processing, contract farming, etc.

STATUS REVIEW Machinery

“Food processing machinery industry is moving in the right direction” Vision 2015 document…

Sanjeev Gupta is the Director of Kanchan Metals Pvt Ltd, one of the leading players in the food processing industry representing a complete spectrum of international food processing machinery. He is also the President of the Agro & Food Processing Technology & Equipment Providers Association of India (AFTPAI). In conversation with Rakesh Rao, Gupta shares his views on the current status of the food processing machinery industry and emerging trends in this segment.

Vision 2015 is a good idea, but what is happening in the food industry is similar to that in other industries. There have been announcements of some good schemes by the Ministry of Food Processing Industries, especially with respect to cold-chain facilities, mega food parks, food safety, etc; but the ground reality is that things are not proceeding as expected. Implementation of schemes is very slow. Sometimes, food processors are not even aware about the schemes. One-to-one interaction is the need of the hour. There should be a singlewindow system, where food processors can get assistance.

Status of food processing machinery industry… Food processing machinery industry is moving in the right direction. In India, we see best of the technologies used by the food processors. The biggest challenge for the food processing machinery sector is to reach out to more food processors. According to the latest report by FICCI, there is an acute shortage of skilled labour in the Indian food processing industry. If we do not get skilled labour in our processing units, we will not be able to work with latest technologies 24x7. That is why we established AFTPAI, an association of food processing technology providers along with other allied sectors of the industry. Our goal is to educate the food processors about the latest and existing technologies. This will ultimately help the industry in increasing the output of the food processing units, resulting in

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higher level of processed/branded food availability in the country.

Segments driving the demand… Food processing industry as a whole is growing at a CAGR of 13.5 per cent with bakery, dairy, snack foods and beverages being the fastest growing segments. Food processing and packaging industry will see maximum orders from these segments in near future.

India as a global hub for food machinery manufacturing… India has already become a global hub. Most of the members of AFTPAI are manufacturing their machinery in India itself. Many of them are even exporting from India, especially to the other developing countries. Machinery manufacturers have a bright future on both domestic as well as global fronts.

Trends to watch out for… Automation is the most emerging trend in the industry. Today, almost every food processor wants to modernise its units to increase productivity. Automation is the answer to that.

Growth potential… There are about 7,000 food processing units in the country. India imports around 10-12 per cent of food processing machinery and rest is manufactured in the country. The food processing & packaging industry in India would grow at a higher growth rate since the demand is growing in both domestic as well as global market.

STATUS REVIEW Meat Processing

“Quality and safety of products will drive the growth of this sector” Facilitating measures…

Dr S K Ranjhan is the Director of Hind Agro Industries Ltd. He has also served as a Consultant with many international organisations – UNDP, FAO, Swiss Development Co-operation, Danish International Development Agency and the World Bank’s Livestock Research and Development. In conversation with Prasenjit Chakraborty, he assesses the performance of meat industry and dwells into its future.

As a result of the efforts made by MoFPI and the industry, the level of food processing has already increased from 6 per cent to 11 per cent in the last five years. As per the Vision 2015 document, the food processing sector will grow to 15 per cent. The industry is taking steps in tandem with MoFPI to achieve the set targets towards modernisation and setting up of new food processing plants, including abattoirs and dairy plants. The establishment of National Institute of Food Technology Entrepreneurship and Management (NIFTEM), the biggest world-class institute, is also a step in the right direction.

Challenges to face… The major challenge faced by the meat and poultry processing industry is on safety and quality front. In the case of poultry, there is prevalence of avian influenza. Similarly, in the case of meat, slaughtering in unhygienic slaughterhouses poses a positive health hazard to the domestic meat industry. The Food Safety and Standards Authority of India (FSSAI), created in 2009 by the Act of Parliament in close collaboration with MoFPI, is focussing on resolving the challenges being faced by the industry.

Demand for meat products… The market for meat and poultry products is growing steadily in India – the annual demand for poultry and red meat is growing at 8 per cent and 4 per cent, respectively. With the establishment of modern dressing plants and backward

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integration, the prospects seem bright for this sector. The non-vegetarian population in the country at present stands at about 75 per cent. Quality and safety of the products will drive the growth of this sector as consumers have faith in the hygienic production of meat and poultry products. The establishment of National Meat and Poultry Processing Board (NMPPB) by the MoFPI will provide a single-window solution to the meat sector, which is economically linked to small farmers raising buffaloes, sheep and goats.

Interesting developments… Companies such as Venky’s, Suguna, Godrej, etc produce high quality and safe poultry meats in modern plants with value-addition to the products. The Delhi-based Fast Trax has also introduced quality ready-to-eat foodstuffs in poultry conforming to food safety standards, at the same time suiting the pockets of general consumers in urban areas, thus giving an appropriate competition to MNCs like McDonald’s, KFC, etc. Many of the brands are on an expansion spree at a fast pace, and may go international soon.

What is in store… The outlook for the meat and poultry processing sector in 2010 and by 2015, is both, holistic and bright with the enterprising players doing their bit to introduce innovative processed, valueadded products like biryanis, seekh kebabs, koftas, Kashmiri gustaba and other delicacies, suiting the pockets of the clientele.

STATUS REVIEW Nutraceuticals

“Sports nutrition is a specialised avenue with promising growth” Market for the nutraceuticals in India…

Dr Shefaali Thanawala is Senior Medical Advisor at Plethico Pharmaceuticals Ltd. She has 18 years of experience in the field of clinical practice and Ayurveda. She is involved in providing effective herbal formulae based on Ayurveda and working in areas of marketing, drug regulatory affairs, and sales for promoting its wide range of products in various international markets. She speaks with Prasenjit Chakraborty on different issues pertaining to nutraceuticals sector.

The overall market size of nutraceutical segment is approximately $ 400 million, of which multi-vitamins, baby foods and nutritional products constitute the major marketshare. The growth rate in India is approximately 8.5 per cent. Also, there has been an increasing demand for products in specialised segments such as sports nutrition, personal care, etc, which can be crucial drivers in paving the market trends in the near future.

Hurdles faced by the segment… While the sector is already flooded with numerous products having variety of claims and USPs, only those that exhibit scientific basis in formulation, promotion and compliance with stringent quality standards and GMP, will thrive in the market. Moreover, once it gets a little organised, various small & big players, especially pharma companies, will find it easier to enter this segment. Also, consumers’ awareness and conviction about health benefits of nutraceuticals & functional foods need to be strengthened further, so that they gain a wider acceptance and are used extensively. Practice of stringent regulations for harmonisation in label claims for better information to the consumers and easier comparison of various products is also required.

Modern Food Processing | September 2010

Emerging trends… Many nutraceutical products that are well-accepted and widely used by the Western consumers have begun to be accepted in the Indian market. Some examples of products with strong documentation of safety and efficacy profile include coenzyme Q 10, fish oils, eye health products like lutein and zeaxanthin, mood support supplements such as 5-HTP etc. Sports nutrition is another specialised avenue, which is expected to witness a promising growth over the next few years. Many herbal products derived from ancient traditional systems worldwide have gained global acceptance and show promising prospects. Some examples include Saw Palmetto (Serenoa repens), Gingko Biloba, Panex Ginseng, etc.

Outlook for the nutraceuticals sector… Globally, food & pharma companies are jumping the nutra bandwagon,and hence, the market potential is immense. Most importantly, for quality players which have reputed brands, the scope to tap the emerging market opportunities is massive. With its wide range of products offering health solutions in areas such as sports nutrition, haircare, eyecare, weight management, etc, we have plans to cater to the upcoming avenues of the nutra sector with the best quality brands, completely compliant with regulations.

STATUS REVIEW Nutraceuticals

“Many players are entering the nutraceuticals segment as it is a low technology area” Demand for nutraceuticals…

Kiran Das is the General Manager - Exports & Herbal Business Operations of Anglo-French Drugs & Industries Ltd. He holds a Bachelor’s degree in Science from Government Science College, Bengaluru and an MBA from Manipal University. Das has worked in different capacities in reputed companies like FulFord India Ltd, Santevision Division of Cadila Pharma, Nicholas Piramal Ltd, etc. In an interview with Prasenjit Chakraborty, he gives insights into different aspects of nutraceuticals sector.

As per industry estimates (ORGIMS), the nutraceutical market is currently at $ 1 billion and growing at approximately 7 per cent. Vitamin B complex, multivitamins, antioxidants, proteins & nutritional supplements, appetite stimulants, etc, belong to the nutraceuticals industry. The other products belonging to this domain include slimming agents, infant foods and plain mineral preparations. The larger segments are plain B-complex, calcium, multi-vitamin & antioxidant preparations, accounting for more than 50 per cent of the total market.

Major growth drivers … The factors driving nutraceuticals market include ageing population, changing lifestyles, increasing medical costs, higher spending power, awareness about preventive medicine, malnutrition-led diseases, etc.

Challenges faced… It is a known fact that smaller towns hold tremendous potential for this segment. So the challenge lies in penetrating the tier-2 & 3 towns for achieving further growth.

Emerging trends… As such there is no regulation for controlling the distribution, promotion or setting up manufacturing units of nutraceuticals. Since nutraceuticals are manufactured in pharma plants, cGMP guidelines are followed during construction and manufacturing. Manufacturing licence is to be procured under Prevention Of Food

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Adulteration Act (PFA Act). However, the Parliament has passed the Food Safety And Standards Bill 2006 and this will come into effect after the government passes necessary notifications in this regard. Once this Act comes into effect, the PFA Act will be repealed and the new Act will be basis for manufacturing, distribution and sales of nutraceuticals. The new Act will bring about better clarity on the standards and regulations in this fast growing segment. General health and well-being is in greater focus than ever before. With improved lifestyles and greater leisure time, people are also more active than before. They are showing more interest in sports and socialising activities. With all this, people are conscious about the way they look and feel.

Perceptible changes… Nutraceuticals offer the correct balance and fulfill the nutritional needs in terms of vitamins, proteins, etc. Being a low-technology area, many new players are entering this segment. Food companies are also eyeing the developments and looking at joint ventures with pharma companies catering to the specific dietary requirements of the consumers.

Future outlook… Nutraceuticals in India are considered drugs, unlike OTC in Western countries. According to Cygnus research report, the nutraceutical segment in India is valued at roughly $ 400 million and is expected to grow at approximately 16 per cent CAGR.

STATUS REVIEW Packaging

“There is a growing demand for post-packaging machinery” Food packaging machinery market in India…

Harish P Joshi is the Managing Director of Nichrome (India) Ltd. He is an alumnus of College of Engineering, Pune, and IIM, Ahmedabad. He was ealier working with Middle East Packaging - a pioneering packaging material start-up in the Gulf. Today, he has been spearheading Nichrome’s growth and has introduced aseptic pouch packaging systems for milk & juices. Joshi speaks to Prasenjit Chakraborty about food packaging machinery.

The pace of growth of the food packaging sector, in the last five years, has been slow. However, now it is picking up and the growth rate is expected to increase further in the coming years. It is a direct reflection of economic growth, change in lifestyles, more people living in the cities, more shared wealth, etc. As the household incomes grow and available time in hand for preparing food reduces, packaged food becomes the only saviour. Availability of a food product will be the single-most deciding factor for the growth of food companies. The focus on packaging will enable this for a food company through widespread distribution and more shelf-life. This will also lead to investments in postpackaging machineries.

Demand drivers… The biggest growth driver for the food processing and packaging industry is the retail packaged products. Hence, more the thrust on retailing various packaged products, more will be the demand from the market. It will help to increase investments in the domain of food processing as envisaged by the MoFPI’s Vision 2015 document.

Road blocks on the way… Heavy taxation on branded food products & input machinery, high freight costs and land prices in cities & towns are some of the factors, which pose many challenges to the food packaging machinery sector, hindering its development into a largescale mass manufacturing industry. This fragmentation prevents economies of scale for manufacturing, which in turn

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poses challenges when it comes to using most modern mass manufacturing technology. Another area of concern is pertaining to the availability of trained manpower to operate the machines.

Emerging trends… With the growing market size, the industry is shifting to higher output machines. But flexibility to pack a variety of sizes at cost-effective prices, remains the principal need of the industry. The trade-off between cost and convenience is still in the favour of costs mostly. There is a growing demand for postpackaging machinery as dependence on labour is leading to uncertainties. Customers are increasingly insisting on one-roof solution from major equipment suppliers. Data capture and integration of various packaging machinery into one control room is becoming essential. Remote access to machinery tools is increasingly being used to service the customer better.

Future outlook… There will be impressive growth and evolution in packaging machinery sector in the next five years. India will further establish itself as the world’s hub for manufacturing quality packaging machines. The companies in the Western countries will increasingly shift their manufacturing base into India eventually. This will help to evolve a sound vendor base in clusters around India and will also certainly create a big employment opportunity. The next five years may see an establishment of quasi government body to handle the responsibility of collection and recycling of packaging waste.

STATUS REVIEW Packaging

“It is important for tinplate makers to price their products reasonably” Market for tin packaging in India…

Sanjay Bhatia is the Managing Director of Hindustan Tin Works Ltd (HTW) - one of the leading manufacturers of cans for food products. He is also the Chairman of Rexam-HTW Beverage Can (India) Ltd (a joint venture with Rexam PLC Group, UK) and a Director in Hi-tech Surfactants Ltd (a joint venture with Unilever). Bhatia speaks to Prasenjit Chakraborty on the tin packaging scenario in India and the prospects it holds in the future.

India’s total packaging market is estimated at ` 650 billion ($ 13 billion), with the metal packaging sector in 2008-2009 constituting ` 30 billion ($ 635 million). The market for metal packaging is growing at about 5 per cent per annum. In recent years, the industry has grown around 4-5 per cent annually. Of this, 49 per cent goes into the big 15 kg containers and 33 per cent to general line cans, 11 per cent to OTS cans, 6 per cent to crown corks and lug caps and others 1 per cent. The government vision to make India the ‘food factory of the world’ is the biggest growth driver for the industry.

Advantage of tin packaging… Shift to alternative packing solutions is the biggest challenge, a cost-effective strategy for can makers is to control the input cost of tinplate, the main input raw material. Tinplate cost corresponds to about 70 per cent of the total input cost for cans. If tinplate rate goes up, it will have a huge impact on the endconsumers. It is important for the tinplate makers to price their products reasonably because the Indian can market is still at a nascent stage. The upfront cost of a can is higher compared to a glass bottle or flexible packaging or plastic pouches, which are widely used in packaging of food and beverages. They are being more preferred than the cans as of now due to the cost factor. But the can also has its distinct merits over the conventional means of packaging of foods and beverages. A can has 24-month shelf-life, which

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no other packaging material possesses. Tin can also be appealing to younger generation. Delivering effective and good quality packaging at low cost is the foremost challenge for producers of packaging materials. Consumers are demanding more value for their money. Hence, to continuously add value, packaging has to become more convenient by making available packs of varying shapes and sizes that can be opened easily. The packaging industry should provide tamper-evident options and show respect for the environment, while providing packaging at minimal costs.

Emerging trends… The health and wellness sector is witnessing huge growth trends. Energy drinks, protein shakes, health drinks, juices, infant milk powder, etc are gaining popularity. Many companies in the food segment in India are planning to launch energy drinks and protein supplements. They are opting for canning of these products as a result of health concerns, which in turn serves as a booster for the can industry. Another emerging market for cans is the juice segment.

Future prospects of the packaging sector… The packaging industry in India is at a nascent stage today and is approaching the take-off point. The prospects for the industry seem promising. With expectation of economic growth, changing consumer lifestyles and increasing disposable incomes, it is estimated that the packaging industry in India is poised for high growth.

STATUS REVIEW RTE Foods

“The government should bring processed foods under zero VAT” Measures to give a boost to the industry…

Balram Singh Yadav is the Managing Director of Godrej Agrovet Ltd. He is also the Managing Director of Godrej Tyson Foods and Vice Chairman of the Compound Livestock Feed Manufacturers Association of India. In an interview with Geetha Jayaraman, he talks about the present market condition of ready-to-eat (RTE) foods.

segment is expected to grow, with more consumers likely to make such foods a part of their daily routine. More than retailers, the institutional customers seeking customised products for adding greater value, convenience and efficiency in their effort to cater to their customer demands, are major growth drivers.

Food processing is an investmentintensive business. Besides, improper post-harvest management and lack of cold chain infrastructure are leading to wastage & higher prices. Therefore, the industry & government should consider forming public-private partnership and provide incentives to private entrepreneurs, who can bring modern infrastructure as well as educate farmers about post-harvest handling. This would help entrepreneurs in lowering the breakeven levels and driving quality products at an affordable price. The government could give the industry a major impetus by bringing processed foods under zero VAT category.

Challenges to overcome…

Demand drivers…

Prospects of processed food…

India’s RTE market for branded packaged food products is in its nascent stage. RTE is primarily characterised by a large unorganised market. This is despite the fact that the country is dictated by diverse food habits and is increasingly being spurred towards globalisation through the growing grip of television and the Internet. While this has brought about lifestyle changes in favour of the consumption of packaged food per se, RTE products are yet to become part of a homemaker’s daily repertoire. Rising income and growth of modern retail are some of the growth drivers of this sector. Moreover, consumers today are exposed to global habits. They are ready to experiment and try convenience foods. Besides, modern retail too creates more reasons for the consumers to try and experiment with ready-to-eat food products. This

High rate of homemakers still manage the kitchen themselves or use domestic help to cook. However, due to compressed time, getting-together and bonding with friends and family is given more importance. Therefore, there is a growing need for convenience in food preparations that overrides traditional considerations, and yet, provides the family with nutritional and emotional sustenance.

Modern Food Processing | September 2010

Inefficient supply chain management, cost of production, thereby higher product prices are some of the challenges faced by the industry. Food processing is an investment-intensive business and while consumption levels are likely to increase, the matching infrastructure to handle it, is not yet ready.

Going forward… RTE foods segment is poised to grow popular in India and become the convenience food for the masses. Already, RTE is well-established in both, the institutional (hotels, restaurants and canteens) as well as retail (modern trade and traditional retail) segments. With a stabilising modern retail trade, RTE is estimated to be growing at 25-30 per cent annually.

STATUS REVIEW Snacks

“The trend of making snacks & sweets at home is waning” Views on MoFPI’s Vision 2015 document…

M Balasubramaniam is a Director at Garden Namkeens, a part of Cavinkare Group. A postgraduate from IRMA, he has been associated with food processing and agri-commodity sourcing for the past 20 years. At present, he is heading the snack food business operations for Cavinkare in Mumbai. In an interview with Prasenjit Chakraborty, Balasubramaniam speaks on different issues associated with the snacks segment.

The Vision 2015 document is ambitious and if implemented in letter and spirit, it has the potential to change the agricultural economy into a profitable and sustainable one. Its goals include increasing the level of food processing by more than three times, improving the valueaddition and thereby, doubling our world trade share in processed foods. This would mean a lot of investment on infrastructure and employment.

Steps to be taken to achieve the goals… The industry certainly has started leveraging the various schemes announced by the government like development of cold chains, mega food parks, etc. The government should be proactive in ensuring that the mega food parks function efficiently. In my opinion, the government needs to offer more fiscal incentives to provide momentum to the investments flowing into the food parks.

Market for snacks… The Indian economy is witnessing one of the finest periods of growth. The affluence is putting more money in the hands of the consumers. The media is influencing the consumers at a young age. Women are moving out of their traditional roles. The joint family structure is fading and paving way for nuclear families. All these are adding to the buoyancy in the snack foods market. The biggest beneficiary of this is the ethnic snacks segment.

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The trend of making snacks and sweets at home is waning, with all these readily available in the market at an affordable price.

Challenges faced… The increase in the raw material costs to unsustainable levels and the sudden spurt in packing material costs are impacting the ability of manufacturers to provide good quality snacks at affordable prices. In addition to this, some of the states have high sales tax rates, which pose a major hurdle in providing value for money to the consumers. One hopes that in the near future, the commodity prices will go down to reasonable levels.

Emerging trends… One can see the emergence of strong regional food brands. This is a healthy sign. The baked snacks are also emerging as a promising new trend. As far as the rules and regulations are concerned, we are swiftly integrating ourselves with the world and people of Indian origin worldwide are emerging as a major market for Indian snacks and processed foods.

Future outlook... The outlook for the snacks segment looks bullish in the next five years. We expect the ethnic snacks sector to grow at an average of 20 plus per cent and the Western snacks market to grow around 15 plus per cent. We do expect adoption of automation in manufacturing on a larger scale and huge improvements in packaging.

INDUSTRY UPDATE

TAXATION Processed foods: Need to unload the tax burden ......................................... 78 AGRI-BUSINESS Organised retailing: Panacea for the agri-business sector.............................. 80 POLICY From farm to plate: FSSAI makes the journey simpler................................... 82 NUTRACEUTICALS Functional foods: Leveraging growth in the Indian market ........................... 84 RAW MATERIALS Food ingredients: Unravelling the natural wealth.......................................... 88 COMMODITY EXCHANGES Agri-commodity trading: Hedging risk, gaining profits ................................. 90 AUTOMATION Better productivity: Smart solutions for better process control ..................... 92 IT SOLUTIONS Automated solution: An integrated approach to efficiency .......................... 94 HEALTH FOODS Gluten-free product: A food category at crossroads ..................................... 96 FOOD TESTING Success in food safety: Adoption of best practices is the key........................ 98

September 2010 | Modern Food Processing

INDUSTRY UPDATE Taxation

Processed foods

Need to unload the tax burden The food processing sector is known to have a multiplier effect on allied industries and businesses. Thus, the government is giving due emphasis on its growth. However, if food processing levels have to be increased, the current tax regime will have to be extended after the Goods and Services Tax (GST) comes into effect. Courtesy: Tax Investigation Corporation

Piruz Khambatta

U Piruz Khambatta is the President of All India Food Processors’ Association and Chairman & Managing Director of Rasna Pvt Ltd. A product and marketing innovator, he has made Rasna a household name. He is also the Chairman of CII National Task Force on Food Safety & Quality. Email: pak@rasnainternational.com

nlike other industries, processed food industry is predominantly controlled by small and medium enterprises. Moreover, it is labour-intensive, creating huge employment opportunities. Today, processed food is as much an essential part of day-to-day life as milk, vegetables, fruits, pulses & rice. It is a myth that rich upper class population consumes processed foods. It is consumed by lower middle class, middle class and even rural people. Hence, processed foods deserve to be at par with essential items at zero per cent tax level. It is also worth noting that the extra tax collected on food should be minimal because of the industry size, and in any case, less compared to other schemes being undertaken in rural areas. And so it is much better at this stage to treat all processed foods as essential goods and tax it at par with basic agriculture commodities, which is at zero per cent GST.

Keeping inflation in check Food comprises a major part of the Wholesale Price Index (WPI). Increase in

Modern Food Processing | September 2010

tax on food would impact WPI, leading to inflation. Zero GST will ensure that not only food inflation is kept low, but also prevent the huge losses in the foodgrains and perishable products. Most countries tax food at a lower rate, keeping in view the considerations of fairness and equity. Even in developed countries such as Canada, the UK and Australia, where food constitutes a relatively small portion of the consumer basket, food is zero-rated. Presently, in India almost all the processed foods are totally exempt from central excise duty and in many states, processed foods attract only 4 per cent VAT. This status should not be disturbed in the new GST regime at any cost.

Towards inclusive growth It is believed that a zero per cent GST can lead to the development of food processing industries in the country, which is treated as a priority by the Government of India. In addition, it can ensure inclusive growth leading to ‘Bharat Nirman’. Tax concessions are also bound to help in ascertaining food security in the country, both in terms of quantity and nutritional requirements.

INDUSTRY UPDATE Agri-business

Organised retailing

Panacea for the agri-business sector Despite having an agrarian economy, food retail sector in India is extremely unorganised and fragmented. To become a global supplier of food products, India needs to build its food retail segment with more participation from organised players. Modern food trade will be the driver for better farming practices, leading to improved yields and enhanced hygiene standards. Courtesy: Land Coalition Inc

Limji Nanabhoy

F Limji Nanabhoy is the Director, Agri-Science (India) Ltd, specialising in agri-business consultancy. He is also the Chairman of the Agribusiness Committee of the Bombay Chambers of Commerce and Industry. Besides, he is the Director of IQF Foods Ltd â&#x20AC;&#x201C; a global supplier of Indian fruits and vegetables. Email: nanabhoy@gmail.com

ood processing is critical for Indian agriculture; it not only adds value to the agricultural produce, but also reduces wastage due to spoilage of produce. It helps in providing a remunerative price to the producer. In 2005, the Ministry of Food Processing Industries (MoFPI) launched the Vision 2015 document as the strategic and action plan for the food processing industry in India. This plan envisages trebling the size of the food processing industry, raising the level of processing of perishables from 6 per cent to 20 per cent, increasing value addition from 20 per cent to 35 per cent and enhancing Indiaâ&#x20AC;&#x2122;s share in global food trade from 1.5 per cent to 3 per cent.

Long road ahead Presently, the Food Processing Ministry needs to revisit these documents and evaluate the progress made in putting

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this vision into reality. Sadly, for the food processing sector in India, this is just a vision and the action plan as laid out, is being implemented in fits and starts. Agriculture along with manufacturing and service sectors constitute the Indian economy. The last two decades have seen a rapid transformation in the manufacturing and service sectors. Not only have they achieved international standards of quality and competitiveness, their contribution to the countryâ&#x20AC;&#x2122;s economic growth has increased substantially. Agriculture is still the laggard, holding back the Indian economy from growing at double digits. Radical reforms in the early 90s, with respect to the industry and service sectors, propelled the spectacular growth of the Indian economy. A similar approach (though in a more controlled manner) could work for unshackling the agri-sector, and in particular, the food processing sector, from the bonds

Agri-business INDUSTRY UPDATE

Table 1: The state of the retail industry and its impact on food processing industry 1980s

1990s

2000s

State of retail industry R Predominantly traditional family owned stores R Presence of wet markets R No large retail players R Share of supermarkets being negligible

State of retail industry R Development of local & regional supermarket chains R Large French & Portuguese Retailing MNCs entered (Carrefour, Casino, Sonae, Jen Nimo Martins, etc) R Share of supermarkets rose to 16 per cent in 1990

State of retail industry R Industry highly consolidated after a series of mergers & acquisitions R Top 5 players accounted for over 44 per cent of food retailing R MNCs like WalMart also entered the market R Share of supermarkets increased to 55 per cent

Impact on food processing R Presence of small-scale processing units & limited product range R Low level of value-addition R Dependence on imports for processed food products R Thus, only 5 per cent of produce was processed

Impact on food processing R Local supermarket chains started establishing backward linkages with consolidators & processors R Thus, spurring the growth of several small & medium-scale processing units in horticulture, dairy, poultry, meat products, etc R New value-added products were produced R Share of food processing increased to 10 per cent

Impact on food processing R Scale of operations in retail necessitated large expansion & technology upgradation R Large-scale processors emerged to cater to demand of value-added, ready-to-eat and convenience products (eg Sadia SA & Ceval in meat processing, Nestle & Parmalat in dairy, Arisco & Turema in horticulture, etc) R 50 per cent of agri-produce is processed

of the past, thereby allowing it to unlock the tremendous value currently lying dormant.

Accelerating demand The value captured as well as created through food processing helps the rural economy to grow at a much faster pace as well as provides rural employment across the supply chain. Thus, a concerted thrust on food processing would add considerable value to agricultural produce, thereby increasing its share in the Indian GDP. Moreover, in the global agri-trade, share of processed food comprises two-thirds of the total agri-exports and that share is increasing. This underlines the need for rapid growth of the food processing industry, so as to garner a greater share of the international agri-trade. The demand for processed foods is bound to accelerate because of the changing economic and demographic profile of the country. With rising incomes, younger working households, changing consumption patterns and modern retail outlets, acceptance of processed food as a means of convenient and safe food, will increase. What ails the food processing industry is known to most. These include issues related to the unavailability of produce in the required quantity and appropriate

quality at right price, poor farmend infrastructure, manipulated markets, credit constraints, long and fragmented supply chain, high processing and packaging costs, taxes, regulations, etc. These impediments prevent the food processing sector from achieving economies of scale.

With rising incomes, younger working households, changing consumption patterns and modern retail outlets, acceptance of processed food as a means of convenient and safe food to consumers will increase.

economies of scale as well as ensuring enhanced quality and safety standards. Brazil is an example where modern retail trade has spurred the growth of the food processing industry. The advent of modern food retail has resulted in the total produce being processed, growing from 5 per cent in the 1980s to over 50 per cent by the 2000s. Table 1 shows the state of the retail industry (in the 1980s, 1990s & 2000s) and its impact on the food processing industry. Brazil is just an example, the South-East Asian countries like China, Indonesia have, in the last two decades seen a rapid growth in food processing and agri-industry, with the advent of organised modern wholesale and retail MNCs.

Modern retail leads the way

Increased investment

How do we break out of this vicious cycle? The Vision document talks about the shift of the food processing industry from being supply-driven to demand-driven. This would only be possible by boosting the organised modern wholesale/ retail trade, which will provide the â&#x20AC;&#x2DC;pullâ&#x20AC;&#x2122; for processed food products. The demand created by modern food retail would justify huge investments in an efficient supply chain, which in turn would feed the food processing units, thus achieving

India should not delay in allowing large-scale investments in this sector through FDI in organised wholesale and retail trade. This will create the conditions for the greatest flow of investment to the back-end with the related benefits for all stakeholders. In conclusion, India must embrace modern retail trade as a panacea for the growth of the agri and food processing sector. Only then would Vision 2015 conceived by the MoFPI can become a reality.

September 2010 | Modern Food Processing

INDUSTRY UPDATE Policy

From farm to plate

FSSAI makes the journey simpler The food sector in India has been governed by many laws, under different ministries. This multiplicity of laws has given rise to many problems pertaining to maintenance of food standards. A single regulatory body and an integrated food law have been recognised as the best solution to resolve this issue. Food Safety and Standards Authority of India presents an optimistic approach. Courtesy: Uppsala University

Prabodh Halde

T Prabodh Halde is Head (Regulatory Affairs) Marico Ltd and Honorary Secretary of The Association of Food Scientists and Technologists (AFSTI) Mumbai Chapter. With a BTech in Food Technology, and an MBA, he has had over 15 years of experience in the industry. He is the Codex committee member of FICCI, New Delhi. Email: prabodh@maricoindia.net

he food industry cannot afford to compromise on food safety. This is evident from the measures taken to prevent untoward incidences on account of contaminated foods such as ban on import of milk & milk products from China due to melamine contamination, restrictions on aerated soft drinks involving scare of pesticide residue and so on. Such incidents raise doubts in consumersâ&#x20AC;&#x2122; mind about the safety of every food item or beverage that is available in the market today. Thus, it has become important for Indian regulators to formulate policies strongly advocating food safety. Such food hazards are not limited to India only. Therefore, consumer safety is a priority the world over. The increasing globalisation is another reason for India to adopt stringent practices for food safety. The objective of The Food Safety and Standards Bill, introduced in

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2005, was to unify the food safety laws in India. The main objective of the Bill is to consolidate all the laws relating to food along with the establishment of the Food Safety and Standards Authority of India (FSSAI) for laying down scientific standards for food items and regulation of their manufacturing, storage, distribution, sales & imports to ensure availability of safe & wholesome food. This Act will enable FSSAI to regulate the food sector. The Authority, aided by several scientific panels and a Central Advisory Committee, will thereby set standards for food safety. These standards will include specifications about ingredients, contaminants, pesticide residues, biological hazards and labels. This law will be enforced by the State Commissioners of Food Safety and other local-level officials making it mandatory for every entity in the food sector to get a licence or a registration under the Act.

Policy INDUSTRY UPDATE

By enforcing the Act, FSSAI can propagate consumer safety, encourage innovation besides reducing the load on regulatory authorities, and thereby move towards self-regulation. It can also help India achieve a larger share in the global food trade.

FSSAI: Operating mechanism The Authority consists of a Chairperson and twenty-two members in which one-third will be women. The administrative structure of the Authority is headed by a Chief Executive Officer, who is of the rank of Additional Secretary to Government of India. The Authority would also designate personnel at airports, seaports, borders and other entry points, where food items that are brought into the country would be regulated and monitored.

Current regulations for food industry in India R The

Vegetable Oil (Control) Order, 1947

Products

The Prevention of Adulteration Act, 1954

The Fruit Products Order, 1955

The Solvent Extracted Oil, Deoiled Meal and Edible Flour (Control) Order, 1967

The Standards of Weights and Measures Act, 1976, and Standards of Weights and Measures (Packaged Commodities) Rule, 1977

Food

The Agricultural Produce (Grading and Marking) Amendment Act, 1986

The Milk and Milk Products Order, 1992

The Edible Oils Packaging (Regulation) Order, 1998

Any other order issued relating to food under the Essential Commodities Act, 1955

BIS requirements for mandatory food products

Seven members representing the Ministries of Agriculture, Commerce, Consumer Affairs, Food Processing, Health, Legislative Affairs and Small-Scale Industries would be a pivotal part of the Authority. There would be a scientific panel, consisting of independent scientific experts, to cover various segments of the food industry namely, food additives, flavours, processing aids and materials in contact with food; pesticides and antibiotics residues; geneticallymodified organisms and foods; functional foods, nutraceuticals, dietetic products; biological hazards; contaminants in the food chain; labelling; and method of sampling & analysis.

Duties to fulfill Some of the duties and functions of the food authority include: R To regulate and monitor the manufacture, processing, distribution, sale and import of food, so as to ensure safe and wholesome food R To prepare the standards and guidelines in relation to food R To set the limits for use of food additives, crop contaminants, pesticides and veterinary drug residues, heavy metals, processing aids, myco-toxins, antibiotics & pharmacologically active substances and irradiation of food R To regulate the mechanisms & guidelines for accreditation bodies engaged in certification of food safety management system for food businesses R To set the procedure and enforcement of quality control R To define the procedure and guidelines for accreditation of laboratories R To prescribe method of sampling, analysis and exchange of information among enforcement authorities R To conduct survey of enforcement and administration of this Act in the country

Courtesy: Guangzhou Treasure Key Economics & Trade Development Ltd

To prescribe food-labelling standards including claims on health, nutrition and special dietary uses R To undertake risk assessment, communication & management R To provide scientific advice and technical support to the Central and State Governments in matters regarding framing of policies and rules

What is new? New chapters on licensing, registration & classification of food have been added. A consolidated definition of health supplement, food for special dietary use, functional food, nutraceuticals, organic, proprietary & novel foods has been presented. Also, a new chapter on label claim has been introduced.

On the road to safety In a country like India that has a vast scope in area of food safety, a common food law will definitely help both, consumers and the industry. Now the bigger challenge lies in its uniform implementation across the nation. There should be a concerted effort to implement the law without diluting the provisions and without much bureaucratic hurdles & interferences at the same time. India is going through such a change after gap of 45 years (Prevention of Food Adulteration (PFA) was enacted in the year 1955). Now the food safety journey has begun in India and it is hoped that the safety regime will benefit the industry, consumers and regulators.

September 2010 | Modern Food Processing

INDUSTRY UPDATE Nutraceuticals

Functional foods

Leveraging growth in the Indian market Advances in food science and changing consumer demands are fuelling growth for an emerging category of food products in India – the functional food and beverages (FFB). They comprise products that go beyond the primary purpose of fostering growth and development. This article presents the dynamics of FFB market in India to help investors and key market players build a realistic growth and investment strategy. Courtesy: The Art of Eating Well

Rashmi Upadhya

he current size of the Indian FFB market is pegged between ` 46-49 billion, Commercial Year 2009 (CY09). Though the Indian market for FFB constitutes less than 1 per cent of the global market, it has been witnessing healthy annual growth rates of 14-15 per cent since the past five years (Figure 1). The two key segments under FFB include functional foods and beverages (Figure 2).

Rashmi Upadhya is Managing Consultant (Strategy) with PricewaterhouseCoopers (PwC), Bengaluru, having worked across the India and US offices of PwC over the past six years. Holding a Bachelor’s degree in Engineering and an MBA from IIM-A, she has significant experience in objective market assessment & competitor benchmarking analysis Email: p.rashmi.upadhya@in.pwc.com

Health food drinks (HFD) HFD is the largest FFB segment in India. The segment has been witnessing a steady growth, with a five-year Compounded Annual Growth Rate (CAGR) of 8 per cent. Product relaunches, value-addition, product and packaging innovation coupled with comprehensive marketing communication has been instrumental in driving growth in this category. Major HFD players (GSK, Heinz, Cadbury’s, etc) are focussing on

Modern Food Processing | September 2010

increasing market penetration by niche segmentation. For instance, GSK has launched several variants of Horlicks to cater to the unique needs of different consumer segments – Junior Horlicks (pre-schoolers), Horlicks Lite (health-conscious adults and diabetics), Mother’s Horlicks (pregnant and breast feeding women) and Women’s Horlicks (health-conscious women). Players have also extended their brands into related segments. For instance, Complan has launched fortified breakfast cereals and biscuits, while GSK has introduced Foodles (fortified noodles).

Energy and sports drinks Energy and sports drinks market is still at a nascent stage in India, with youth as the key target segment. Consumption of energy drinks in the country is driven by sales in restaurants, pubs, etc, which account for over 75 per cent of total sales. Emphasis on Below The Line (BTL) marketing, building credibility through endorsements and making products

Nutraceuticals INDUSTRY UPDATE

available at lower price points are some of the strategies being adopted by major players including Red Bull and others. This segment is witnessing significant traction with various domestic and global players eyeing to enter the market. New entrants include Sobe by PepsiCo, Romanov Red by UB Group and Burn by Coca Cola.

Fortified juices Fortified juices segment is one of the fastest growing FFB segments in India with a five-year CAGR of 25-30 per cent. This has been driven by growing demand for convenience packaged beverages that serve the benefits of fresh fruits/vegetables reinforced with added vitamins and minerals. The segment is also

CAGR: 14-15%

V alue ( ` B illion)

11 10

9 8

C Y 04

C Y 05

0 C Y 06

C Y 07

Beverages (CAGR 16%)

C Y 08

Food (CAGR 10%)

Figure 1: FFB market in India (`

witnessing experimentation with the launch of exotic juice blends.

Functional milk & yoghurt With India being a milk surplus nation, this segment has significant growth potential. Functional milk includes milk products fortified with probiotic bacteria, Omega, calcium and iron. However, lack of adequate cold storage infrastructure remains a key concern. Amul, a major player in this space, recently entered into a partnership with Global Alliance for Improved Nutrition (GAIN) to develop a business model for milk fortification, aimed at reaching the masses. Functional yoghurt is a nascent segment with an estimated market size of ` 500-550 million. Higher income levels and desire for convenience is leading to consumers slowly switching from low-cost 12 home-made yoghurt to branded packaged form of yoghurt. Probiotic yoghurt offers health benefits 36 such as improved digestion. It is available at a premium price, compared to regular C Y 09 packaged yoghurt and is estimated to be growing at a rapid rate billion) of 45-50 per cent.

Fortified biscuits & bread

1% Health food drinks

1% 8%

Energy & sports drinks Fortified juice

5% 3%

Functional milk products Fortified biscuits

Fortified breakfast cereals Fortified bread

45% 11%

Functional gum Functional yoghurt Fortified edible oil

11% 8%

Source: PwC Analysis, Industry reports, Trade estimates, Euromonitor, Datamonitor

Figure 2: FFB market segments (as a percentage of the overall FFB market)

Fortified biscuits & bread segment has been growing steadily at an annual growth rate of about 8 per cent. Affordability, taste and nutritional value are among the key drivers for this segment. Industry players are increasingly positioning themselves on the combined platform

of health and taste. Going forward, fortified biscuits could be an ideal nutritional vehicle for the masses and could also enable players to tap into the potential at ‘bottom of the pyramid’. For instance, Britannia partnered with GAIN and the Naandi Foundation to supply its iron-fortified Tiger biscuits for mid-day meal programmes in schools.

Other products Growing demand for fortified, low-fat breakfast cereals as a healthy breakfast option is driving the demand for this market. Improved packaging, with focus on reinforcing health benefits, flavour innovation and achieving greater retail availability are some of the key strategies being adopted by major players (Kellogg’s, Quaker Oats, etc) to increase market penetration. Customisation of products to suit local requirements is also a critical factor for success in the Indian market. Fortified edible oils segment comprises only about 2-3 per cent of the overall organised edible oils market in India. This market is witnessing a shift towards blended oils as players focus on higher proportions of healthier oils containing Omega fatty acids.

Growth drivers for FFB Young consumer base, rising disposable income, increasing accessibility and growing health awareness among consumers are the key demand drivers for FFB in India. Favourable demographics: Youth (aged between 20 and 35 years) account for 25 per cent of the total population in India. Driven by the need to ‘look and feel good’, the youth is increasingly shifting to foods positioned on the health platform. Children (aged below 10 years) account for approximately 20 per cent of the total population. Inclination of parents to spend on their child’s physical and mental growth will be another key growth driver for this segment. Increasing accessibility: Rapid urbanisation coupled with increasing

September 2010 | Modern Food Processing

INDUSTRY UPDATE Nutraceuticals

basic understanding of functional ingredients 4.2 9.3 100 and associated 11.9 13 80 health benefits. In 15.3 addition, consumers 60 are often sceptical 47.9 40 about health benefits of FFB and believe 20 that the ‘functional’ 0 tag is an excuse to FF Energy FFB FF Hot Fortified Bakery Other FFB Drinking & Sports (CY09) Drinks Juice Functional (CY14) Milk charge unwarranted Drinks Foods Products premiums. There also Functional Beverages Functional Foods exists a prejudice *Bakery includes fortified biscuits, bread and breakfast cereals that companies will Figure 3: FFB market forecasts (` billion) deliberately make vague claims and penetration of organised retail is launch products without solid expected to drive consumption of evidence to back benefits being FFB. Organised retail penetration advertised. Hence, it is critical for is expected to grow at a CAGR of the government to lay down rules 50 per cent till 2013 to reach 30 per governing all aspects of manufacture, cent and 10 per cent in urban and rural selling, storage and distribution of India respectively. FFB. It is known that FFB will be under Rising disposable income: Per the purview of Section 22 of the Food capita disposable income in India is Safety and Standards Act (FSSA) in expected to grow at a CAGR of 8-9 per India. However, this is currently still in cent in the next five years. Increasing a draft stage. willingness among consumers to try new products coupled with a higher Working on innovative propensity to spend is expected to product concepts and drive demand. engaging in campaigns Growing health awareness: Indian consumers are increasingly to build long-term adopting ‘prevention over cure’ consumer awareness & approach. Shift to processed packaged demand is critical. foods on account of convenience and hygiene will lead to further growth of the FFB market. Build awareness and credibility among consumers: Industry players Future strategy need to educate potential consumers Indian FFB market is estimated to and increase their level of understanding. grow at a CAGR of 16-18 per cent, Working on innovative product concepts to more than double its market size and engaging in campaigns to build over the next 5 years. The market size long-term consumer awareness & is expected to reach about 105 billion demand is critical. Leveraging trusted by CY14 (see Figure 3). In order to tap third parties (endorsements from this opportunity, companies will have doctors, professional associations, etc) to look at the following things while to act as brand advocates and solid devising growth strategy: research evidence, will be important to Lay down clear and convince consumers that the healthunambiguous regulations that related claims are credible. govern quality and claims of FFB Provide consumers with products: Most consumers only have a tangible benefits: Products with 120

3.3

Modern Food Processing | September 2010

an easy-to-feel effect, such as an energy boost, are likely to be more successful (at least in the short term). On the other hand, products such as Omega-3 fortified milk may provide an important nutrient, but fail to give consumers an instant gratification. Partnerships: Globally, FMCG companies are entering into joint ventures (JV) with food ingredient manufacturers and pharmaceutical entities to leverage on synergies and share investment commitments. While FMCG players have the distribution strength to generate volumes, pharmaceuticals and ingredients players have R&D expertise to enhance the functional value of the product. This trend is expected to follow suit in India as well. The Indian landscape is already witnessing significant footing with MNCs looking to enter the market though alliances/JVs. This will gain further strength moving forward. Focus on innovative packaging: Design, size and labelling of products needs to be carefully planned with portion control in mind and packs should promote nutritional benefits that are easy to understand. Britannia’s Cheese Slices and Nutrichoice 5 Grain biscuit packs are examples of portion control. Fortification with natural ingredients: Leveraging the intrinsic appeal of traditional ingredients such as ayurvedic ingredients will be vital and it will also provide huge opportunities in the Indian context. Indian consumers will be able to easily relate to products fortified with traditional ingredients.

References R US Census Bureau R ‘Indian Retailing-The way forward’,

a study by Associated Chambers Of Commerce and Industry (ASSOCHAM)

(With inputs from Nikhil Gidra, Consultant - Transaction Services Strategy Team, PwC)

INDUSTRY UPDATE Raw Materials

Food ingredients

Unravelling the natural wealth As the market for processed food increases, so does the demand for ingredients. Food ingredient companies today face a new set of challenges, as consumers demand healthier products. Natural ingredients, offering new flavours and health benefits, are likely to gain from this trend. While food product manufacturers seek to employ â&#x20AC;&#x2DC;naturalâ&#x20AC;&#x2122; alternatives, ingredient suppliers are taking a step ahead to meet this demand. Courtesy: Orana

Parveen Dang

G Parveen Dang is the Director (Sales) and R&D (South Asia) with Orana India Pvt Ltd â&#x20AC;&#x201C; a 100 per cent subsidiary of Orana A/S, a leading global company in fruit-based ingredients for beverages, dairy and bakery products. He has been serving Orana for the last five years and has more than 13 years of experience in processing, R&D and marketing of food ingredients. Email: prd@orana.in

rowing urbanisation, changing lifestyles and the need for convenient healthy foods have ushered in a new category of functional and health foods. They claim to be fortified with certain new-age ingredients offering functional health benefits over and above the basic nutritional value of the foodstuff. The global market for food ingredients was estimated to be worth around $ 28 billion in 2008 and is expanding at a rate of 5-6 per cent year-on-year. Globally, food ingredient segment is a multibillion dollar industry and is growing in sync with the processed food market. Innovation in the food and beverage market, especially in processed foods, has created innumerable opportunities for new product development in the ingredients market too. The Indian market has a low base when compared with the global market and was valued at $ 470-475 million in

Modern Food Processing | September 2010

2007, which is a meagre 1.6 per cent of the global market. Despite such a scenario, the scope of growth in the Indian food ingredients market is huge, given the current market size for processed foods in India, which stood at $ 72-75 billion during 2007-08 and has been growing consistently at the rate of 9 per cent year-on-year. The Indian food processing market, is considered to be a sunrise sector after IT.

Meeting changing needs As the processed food market is expanding in India, it is giving a boost to the ingredients market. Today, customers look for good quality products, with good taste, colour, mouth-feel, shelflife, etc. This highlights the need for food ingredients like stabilisers, colours, flavours, enzymes, etc that enhance the qualitative parameters of foods. Then there are customers who want enhanced nutrition in food products like vitamins, minerals, fibres, pro-& prebiotics, Omega 3, low calorie, etc. These ingredients are gaining popularity as customers are becoming more health conscious.

Raw Materials INDUSTRY UPDATE

The Indian food ingredients market is experiencing a growth rate of 7-8 per cent per year. However, there are some niche segments, such as health food ingredients that are growing in double-digits. Hectic, sedentary lifestyles, the reluctance to exercise and the desire to be in control of one’s health have fuelled the fad for functional foods and beverages, which in turn is expected to drive the health-benefiting ingredients market. Enzymes and artificial sweeteners are currently witnessing moderate growth in India. Product innovation in the processed foods market has increased the popularity of these products.

Natural ingredients Most of the food ingredients manufactured in India and other parts of the world are derived from natural sources. The food ingredient industry is ideally the middleman and the core link responsible for maintaining complete integration in the food value chain, right from the farm gate to the end-food product stage. Hence, it is crucial for the entire chain that healthy growth of the food ingredients market is ensured. Demand for natural food ingredients is on the rise as customers are more concerned about what they are eating. Each food company is trying to have a clean label and as much natural ingredients as possible, so that customers get a more natural product. So, there is huge demand for natural flavours, colours, ingredients from sources like Omega 3, soy proteins, etc. In India, it is still a small market due to the high cost of natural ingredients. But as the purchasing power of customers is increasing, enormous growth is expected in this segment in the coming years.

Propelling demand The key driver for growth of natural ingredients is the ‘health and wellness’ concern. Today, consumers want higher levels of natural ingredients in their diets

in an effort to avoid artificial additives. The use of preservatives, synthetic colours, artificial flavours does not give a good image to a product now. People are willing to sacrifice on taste, appearance of the product for the sake of natural product. The perception that ‘fresh is quality’ will create demand for products that is made of or contain fresh and healthy ingredients. Most of the reputed food companies also aim at offering healthy products to customers, and hence, they strive to develop products with a more natural image. All these factors are leading to the growth of natural food ingredients.

Healthy gains The whole world is moving towards consumption of healthy food; and food ingredients can play a major role in ensuring this. For instance, processed foods can be made healthier through fortification by way of adding vitamins,

Each food company is trying to have a clean label and as much natural ingredients as possible, so that customers get a more natural product. minerals and other advanced ingredients like omega 3, soy proteins, fibres, etc in the products. Currently food fortification encompasses a broader concept and might be done for several reasons. The first is Enrichment - restore nutrients lost during food processing. The second is Fortification - add nutrients that may not be present naturally in food. Fortification also standardises the contents of nutrients that show variable concentrations. Finally, for technological purposes, preservative or colouring agents are added to processed foods. Therefore, depending on the reasons for adding nutrients, the objectives may be: to maintain the nutritional

Courtesy: Orana

quality of foods, keeping nutrient levels adequate to correct or prevent specific nutritional deficiencies in the population at large or in groups at risk of certain deficiencies (ie, the elderly, vegetarians, pregnant women, etc); to increase the added nutritional value of a product (commercial view); and to provide certain technological functions in food processing. According to these principles, in several countries nutrients are added to a wide variety of food carriers, such as cereals, flour, bread, milk, margarine, infant formulae, soy milk, orange juice, salt, sugar, monosodium glutamate, tea, dietetic beverages among others. Most fortifying agents are vitamins and minerals, and in some cases, essential amino acids and proteins. These additions have helped to solve health problems, such as salt iodisation to prevent goitre.

Potential unlimited India is one of the world’s largest producers as well as consumers of food products, with the sector playing an important role in contributing to the development of the economy. The spending on food accounts for nearly 21 per cent of India’s GDP and with a market size of $ 181 billion. In spite of constraints like availability of raw materials, stringent food laws, etc, Indian food ingredients sector has immense potential, as the demand will increase for ingredients in future.

September 2010 | Modern Food Processing

INDUSTRY UPDATE Commodity Exchanges

Agri-commodity trading

Hedging risk, gaining profits Food manufacturers are currently facing the challenge of increasing prices of agri-commodities. Moreover, it is difficult to predict the future price of raw materials, especially in the case of imported ones. Hence, the food processing industry needs to find a solution to manage price risks and keep the production cost in check. Globally, successful food manufacturers resort to hedging their price risk on the commodity exchanges. Courtesy: Commodity Broking Services Pty Ltd

Anil K Mishra

T Anil K Mishra is the Managing Director of National Multi Commodity Exchange (NMCE). With over 30 years of experience in the commodity sector, he is responsible for making NMCE one of the leading commodity exchanges in the country. He has also worked with Swiss firm Eco Agro Industrial Corp as Country Manager. Email: anilmishra@nmce.com

he core function of commodity exchanges is to provide a better platform for transparent price discovery and price risk management. It brings all the stakeholders on one single juncture for this purpose. More the stakeholders better would be the price discovery and opportunity for price risk management. The commodity exchanges are striving to bring in more participants. Currently, banks and mutual funds are not allowed to participate. Once they are allowed to do so, the exchanges could perform its role efficiently and bring in more liquidity.

Price discovery As evident from Figure 1, there are many stakeholders with diverse interests and different risk-bearing abilities. Together, they are able to give better views on price, because the participation is allinclusive at the national level as well as transparent. It not only discovers the price for the spot or nearby month, but

Modern Food Processing | September 2010

also for future months. One can lock that price, if required. The market is never in unanimity; two people with same information take diametrically opposite views every time a transaction takes place.

Price risk management The food processing industry faces the biggest challenge of controlling the price of raw materials. It is not possible to predict the future price of commodities. There is production uncertainty on account of the weather factor, which can have a devastating effect. The consumption, on the other hand, grows as a result of improved purchasing power and population explosion. The fluctuation in currency too impacts the import and export of commodities. The competition from substitutes also affects the price. The large speculation in the international commodity exchanges where hedgefunds and banks are allowed to participate also influences the price of commodities. Thus, the food processing

Commodity Exchanges INDUSTRY UPDATE

driven prices by buying goods, the s Processors re Farmers Fu u t government or tu Co-operatives Fu re s public would not Traders Others know who was Fu tu Others re building stock and s Speculators who was behind Investors Buy Sell the rise. In a Spread Traders legend Arbitrageurs futures market, if Jobbers a group of market participants has Figure 1: Stakeholders of commodity exchange systematically driven prices, industry is always exposed to price risk detailed daily position data should show and needs to manage it. that groupâ&#x20AC;&#x2122;s position changes preceded Successful processing companies price changes. In exchanges, it is globally resort to hedging their price transparent and real-time dissemination risk on the commodity exchanges. This of information. is because hedging in the exchange enables the processor to have stable How to hedge? prices of raw materials and protects The industry users have the objective the margin. It reduces the working to buy at lower levels of the day capital requirement almost 20 times, range, which is only possible in futures since they have to pay only 5 per cent market. This is because in a physical of the value as margin money to book market, price does not fall within a day. the contract. It ensures supply during It is advisable to keep buying price at off-season or shortage. There are no lower levels, 2 and 3 per cent below chances of defaults because exchange the previous day, if one feels bearish. or clearing house takes the guarantee Moreover, one should keep buying 5 of performance. Hedging does not per cent of the monthly demand every only hedge the risk, but also the profit day at lower range. If unsuccessful, carry over the shortfall and buy more potential. quantities on the following days. It is Commodity exchange not a also essential to buy little more quantity den of speculation on sharp falling days. There is a common myth that speculation and speculators are bad. However, it is Contango and backwardation the contrary. Speculators are the ones Contango is the normal state in the who take the risk, when hedgers transfer market when future prices are higher. their risk on the exchange. Commodity This is also called cash and carry. exchanges run awareness programmes Nobody would carry the commodity for farmers, processors, consumers, if the future price is not higher than investors, arbitrageurs, speculators and his cost of carry, which includes the others. Speculators do not mastermind, interest on capital, storage charges, they simply respond. Participation by shrinkage and nominal profit. Bigger speculators does not systematically the contango, more investors would precede price changes. They typically alter deploy their fund in buying the commodity or commodity futures. If their positions following price changes. it is normal, the suppliers hold. If it is Difference in speculation unusual, the investors jump in. between spot and futures Backwardation is reverse of In a spot market, if a group of contango. This happens when there is market participants has systematically acute shortage of the commodity in Physical

Suppliers

N M C E

the spot market and demand cannot be deferred. Some take double benefit when market first goes in contango and then in backwardation.

Current challenges Each buyer, however big, has limited suppliers who are mostly traders. Price is not transparent. The supplier has such understanding of his buyer that he builds the positions as per buyersâ&#x20AC;&#x2122; business plan and squeezes the buyer. He knows when the big buyers announce the price and quantity of purchase. Sometimes, buyers have to compete with their own suppliers. When the price in futures or international market drops, it does not drop in local market because their own suppliers, who are short at higher level start covering at higher price. More storage space is needed to build inventory during peak season, so that production is not hindered during off-season. Huge working capital gets locked and turnover of the fund becomes slow. There is possibility of default because risk is taken on each counterparty, and it is difficult to know with how many buyers the supplier has taken exposure.

Advantages of futures market Industry could buy the futures when the price is low. It could give the buying order at lower range of the day. If the market moves down due to any reason it would be able to capture that lower price daily. Price is transparent and is not influenced by few suppliers. The industry could just pay the margin money of 5 per cent. It needs to make payment before lifting, hence could bring down the amount of working capital. It need not keep big storage facility. It could lift from the exchange warehouse just in time. It could buy from its preferred supplier and use exchange as risk management tool and square the position or use exchange warehouse as other alternative avenue for lifting. There would be no default risk.

September 2010 | Modern Food Processing

INDUSTRY UPDATE Automation

Better productivity

Smart solutions for better process control In order to achieve the ambitious targets of the Ministry of Food Processing Industries, there is a need for large-scale increase in production. Hence, modernisation is the way forward. Automation can help food manufacturers to raise productivity, conserve energy & water, improve quality and attain all their business goals. Courtesy: Siemens Ltd

Deepak Kudtarkar

T Deepak Kudtarkar is the F&B Sector In-Charge at Siemens Ltd, a provider of fully integrated automation solutions for food & beverages industry. Working with Siemens for last 21 years, he has held key responsibility in divisions like machine tool, automation and F&B area. For details, contact Rayanne Alvares on email: rayanne.alvares@siemens.com

he National Policy On Food Processing aims at increasing the level of food processing from the present 2 per cent to 25 per cent by 2025. But, to reach processing levels targeted by the Ministry of Food Processing Industries (MoFPI), a quantum jump is required in processing technology. This can be possible by working in close collaboration with process & automation teams. The government should support R&D and technology-related initiatives by setting up R&D centres with active participation from process technologists, machinery/equipment manufacturers & automation solution providers, besides providing investment subsidies. Automation levels in the food processing industry can vary widely from a completely manually operated plant to the one fully operated by robots. Even though the manufacturing process can differ from one product to another, benefits of automation can be seen in the areas like product quality, packaging, energy conservation, water

Modern Food Processing | September 2010

management, shelf-life and tracking & tracing of food products.

Quality matters Food quality is at the heart of the food processing industry, be it hygiene or taste. Automation can be of great help in maintaining the quality. The entire process expertise lies inside the automation system, which meticulously controls all the process parameters to ensure the highest quality of the endproduct. It also brings in flexibility. In order to switch to a different product on the same line, an operator just needs to select the product from the console. The required recipe, with ingredients therein and their quantity gets selected automatically. It not only takes the burden off the operator, but also reduces cycle time, thus increasing productivity.

Packed to perfection It is necessary to not only guarantee fast machine cycle times to satisfy the high-volume handling requirements, but also to safeguard the hygienic

Automation INDUSTRY UPDATE

conditions and process the most varied packing material. Packaging methodology can be: Manual: The entire operation is grouped into different categories and done manually. Mechanical tools are made available to ease the job and increase the speed. This method can be used where production demand is low. Packaging machines: State-of-theart packaging machines are available that cater to various needs in the packaging area. They are based on automation and motion control solution. Important types of packaging machines include those meant to perform operations such as form, fill & seal; aseptic & vacuum packaging; tubular bagging; shrink wrapping & strapping; labelling; covering & wrapping; and palletising. Robotics: For the first time, robots were bought by food and drink companies in Europe. Packaging section is getting more digitised and technology is helping in increasing flexibility, accuracy and speed of production.

Energy-efficiency Several conglomerates are moving towards energy-efficient solutions. Analysing the present process and implementing customised automation can help increase energy-efficiency during food processing. Automation systems can help in modelling heat and mass transfer, analyse the pattern and guide original equipment manufacturers in developing energyefficient solutions.

Conserving water Water is an essential component of any food and beverage (F&B) industry. Purified water goes into the processing of food products. At the end of processing, huge amount of wastewater is generated. Technology solutions are available for water treatment to ensure that the water mixed as ingredient is of the right quality without any harmful chemicals. Smart solutions can be used to help reduce water consumption in areas like cleaning and rinsing.

Extending shelf-life With changing lifestyles, consumption of processed food is on the rise. After being packed, the food is stored and then transported to different distribution points, before it reaches the outlets from where customers can take the pick. This has resulted in the emphasis on packaging to increase the shelf-life. At the same time, the packaging should look aesthetically good. There are different ways of increasing the shelf-life: Aseptic packaging: After the food is packed, the package is sterilised with flash heating process â&#x20AC;&#x201C; by high temperature exposure of up to 150ÂşC for a short period depending on the type of food product. This process kills all the micro-organisms present inside the package, thus increasing the shelf-life. Vacuum packaging: In this method, air is sucked out of the food packets, just before sealing. Microorganisms require oxygen. So, by sucking the air out, there is a vacuum created with no oxygen inside. This prevents the bacteria from growing, thus increasing the shelf-life of food. Freeze drying technology: It is the process of dehydrating frozen foods under vacuum, so that the moisture content changes directly from solid to gaseous form without having to undergo the intermediate liquid state, through sublimation. In this process, the product maintains its original size and shape with minimum cell rupture. Removing moisture prevents a product from deteriorating at room temperature. The process is used for drying and preserving a number of food products, including meat, vegetables, fruits and instant coffee products. The dried product will be of

Courtesy: Siemens Ltd

the same size and shape as the original frozen material and will have excellent stability and convenient reconstitution when placed in water.

Tracking and tracing Tracking and tracing enables to keep records of all the food ingredients that gets into the final food. The process is gaining prominence as it enables to ensure good quality of products. Track & trace can be done through simple techniques like bar codes. Its major benefits for the food industry are: Backward genealogy: If any batch of food is reported bad from any storage location or outlet, one can trace it down to ingredients, which could be the probable cause for the fault. One can even go back further to the vendor from whom it was procured. Forward genealogy: Once the faulty ingredient is identified, one can run forward genealogy, to identify all the batches into which this low quality ingredient has gone. This is helpful, if these batches are to be called back from the market.

Resolving key challenges The food manufacturers have a long way to go to increase speed, flexibility and efficiency for achieving the goal set by MoFPI. With their smart solutions and innovative products, automation solution vendors can provide answers to some of the key challenges faced by the industry.

September 2010 | Modern Food Processing

INDUSTRY UPDATE IT Solutions

Automated solution

An integrated approach to efficiency The use of automation, especially sensor technology, in the food industry holds enormous advantages in terms of detecting contamination of food and for safety applications. The sensors can be used inline and integrated into existing manufacturing lines or as standalone, thereby enabling rapid screening, monitoring & reporting, right from the product development stage. Courtesy: Endress+Hauser

Holger Schmidt

Holger Schmidt is the Global Industry Manager for Food and Beverage at Endress+Hauser Messtechnik GmbH+Co KG. A graduate at TU Munich, Weihenstephan, he has worked with reputed companies like KHS Maschinen, APV and Huppmann Handel. Email: holger.schmidt@de.endress.com

he food industry belongs to the non-cyclic category. This is clear, because satiation of hunger and thirst is not dependent on the economic scenario, and these needs will not end, if an international financial crisis occurs. The food industry is reaching new heights worldwide, be it technological advancements, profitability or productivity. For instance, in Europe, the food industry recently reached the number one status in terms of turnover. Despite the progress and technological advancements in this field, the adoption of automation in the food industry is at a low level compared to other big industries. There are huge opportunities hidden in this fact. As sensor technology, one of the major technologies in automation, is all set to see a wider acceptance and implementation in the coming years, it is pivotal to be aware of how to use the signal and integrate it.

Modern Food Processing | September 2010

Systems/integration/protocols: Drawing parallels Worldwide, the present generation, especially the youth, makes extensive use of digital technology. It is really a challenge to co-ordinate with innumerable companies to use not only the same language, but also the same dialect and basic phrases. The adoption of Field Device Tool/Device Type Manager (FDT/DTM) technology is the first step in this direction. All participants speak the same dialect, while opening the dialogue. It is enough to start up and run every sensor on every system that understands this technology. The user can be successful in integrating this equipment, just like he/she can attach equipment to the USB Interface of his/ her home computer. The next step is the use of faceplates that describe the sensor in all its options. They work like a CV, if placed in the control system, and tell the system everything about the sensor. The system then transmits everything that the sensor needs to perform

IT Solutions INDUSTRY UPDATE

its function. This is done through condition monitoring. The sensor alerts if something in the system is out of defined ranges. So the operator can start working on the issue, even before it becomes a problem.

Asset management Here comes the role of asset management. The control system is able to supply, at any time, a clear picture of what sensor is installed where, what it does and what its stage of maintenance or calibration is. This system enables the user to verify most of the sensors without dismounting them. The automation systems can integrate with useful technologies like wireless connections. This adds value for remote areas with slow processes, like tank or silo farms. Internet connections provide easy and stable options to integrate remote plant areas. Several components are equipped with an Internet module and can easily be linked to a phone line. Digital communication is the need of the hour for supplying information in both directions. Bus systems are not often used in the food business. Perhaps, the industry waited for the next step to come, which has now begun â&#x20AC;&#x201C; the direct integration of sensors into Ethernet IP loops. Now one can come across the direct linking technology from the office, order intake, via production planning into the plant control, down to the single sensor, directly wired, without any converter. The future automation system will witness tremendous changes. The integration of all available data from sales, logistics, product planning, raw material availability and utilities support will bring it to a glass plant where one can see what is happening, by changing the different parameters in this system. Integrated tracking and tracing will supply the demanded data for the fulfillment of legal and

private recommendations for standards like the International Food Standard (IFS) or ISO 22000. The integration enables to supply the real-time carbon footprint of a product during manufacturing. Linking the departments enable to plan downtimes easily; order the right material, perhaps even automated with an inventory control system; get the quality-related data, not only inline from the plant, but also the remote ones out of lab, linked to the product. This enables complete control. The data will be accessible from every predefined place, within the plant or globally. Global enterprises will appreciate this opportunity.

The integration in asset management systems for predictive maintenance and calibration of sensors are essential technologies to keep these systems reliable and trustworthy. Smart technology The sensors will supply a good portion of the necessary information to run these systems properly. Clever integration is the key to successful applications. It is not always the case that there is a straight way to receive the information required to control the process or to monitor the quality. Smart technology, involving more than one sensor signal, brings it to a field calculator, or into the control system and supplies the necessary information more often. Multi-sensors will give loads of information, but still the basic inline technology will carry the main burden.

Courtesy: Endress+Hauser

For instance, sensors designed for the detection and identification of contaminants in food quality and food safety applications are used throughout the food manufacturing process. There are no revolutionary developments in the sensor technology visible right now. Most new technologies are not yet robust or cost-effective enough to influence the food industry within the next five years. Optimisation of existing technology and use of smart technology will become a norm in the future. The integration in asset management systems for predictive maintenance and calibration of sensors are essential technologies to keep these systems reliable and trustworthy. The supplying industry is supporting this with different scales of certified services.

Conclusion Gone are the times when a single system was used to measure the flow to operate a control valve. The future systems will be integrated with the process requirements and be fully linked with different departments and functions. The integration will become much easier. Automation will reign in all industries and enable them to reach their profitability goals in a reliable manner.

September 2010 | Modern Food Processing

INDUSTRY UPDATE Health Foods

Gluten-free product

A food category at crossroads With consumers making the conscious choice of removing gluten from their diets on account of increased levels of allergic reactions and incidences of celiac disease, the market for gluten-free products is expected to rise significantly. This has widened the scope for new product development in this area, and manufacturers of such products can capitalise on the emerging opportunities thus unleashed. Courtesy: Big Hospitality

Mark Whalley

Mark Whalley is an Analyst in the Consumer Business Unit at Datamonitor. He joined Datamonitor in 2008 as an Associate Analyst and has authored a number of reports in the food & beverage industry. He has also done consultancy work for high-profile clients in the consumer packaged goods industry. For details, contact Delphine Jersier on email: djersier@datamonitor.com

luten-free products present a growing opportunity within the global health and wellness market, as a result of the increasing awareness about allergic reactions to food items containing gluten. Hence, the overall market for gluten-free products has grown rapidly over the past five years. A research conducted by Datamonitor on this particular market, covering 15 countries, revealed that it has grown from less than $ 2 billion in 2004 to $ 3.1 billion in 2009, an annual increase of more than 10 per cent. More than half of the market value is accounted for by the US. This emphasises how prominent the American market is for this category. The forecast till 2014 shows that per capita spend in some countries will begin to catch up with the US. In particular, consumers in Italy, the UK and Australia will begin to spend on levels commensurate with that in the

Modern Food Processing | September 2010

US, the study observes. Going forward, the strongest growth appears to be coming from the Brazilian and Korean markets, although this is somewhat indicative of lower base rates.

Demand trends There will be a significant demand for gluten-free food and beverages because consumers with celiac disease will always require products that cater to their specific dietary requirements. This means that a vital key to growth is information and understanding. People who do not realise that they have celiac disease are potential consumers. Even some medical professionals have difficulty in diagnosing celiacs, leading to people thinking they have other conditions with similar symptoms, such as irritable bowel syndrome (IBS). Another interesting source of potential growth comes from consumers, who do not suffer from celiac disease. These consumers are mostly interested in gluten-free products because they perceive them

Health Foods INDUSTRY UPDATE

to be a healthy dietary option. Links to consumption by famous celebrities has also raised the profile of glutenfree products. It is the interest from this consumer group that has placed gluten-free products at crossroads. Manufacturers will undoubtedly be excited by the potential of marketing to a wider audience, but it will be a challenge to retain these casually interested consumers in the longterm. Therefore, products must meet or exceed expectations regarding taste or else these consumers will not feel sufficiently incentivised to stick to a diet that is not a necessity for them.

Research findings The research revealed that 20 per cent of global consumers avoid certain foods and beverages due to allergy/ intolerance reasons ‘most or ‘all the time’, while a further 22 per cent claimed to do so ‘occasionally’. This means almost half of consumers take these considerations into account during grocery shopping, which is indicative of a broader audience being attracted to ‘free-from’ food and drinks. Allergies and intolerances appear to be more of a concern in the Middle East and North Africa (MENA) region. Almost three-quarters of respondents in this region report occasional

avoidance of such products. However, it should be noted that consumers do not always understand the definition of an allergy or intolerance.

New product development In terms of product launch trends, gluten-free product penetration has steadily increased in most markets, particularly in North America. This opens the door for products in other markets to make gluten-free claims and capitalise on latent interest – not just among those suffering from genuine intolerances. The fact that gluten-free alternatives are often also low in carbohydrates means that it is interesting to note how manufacturers are moving away from making low-carb claims and replacing them with a more positive gluten-free claim. Innovative formulations are allowing manufacturers to make products using certain grains, despite this process traditionally considered unsuitable for this consumer group. It is now common for gluten-free products to also tout a myriad of additional benefits beyond simply catering to consumers’ dietary sensitivities. One example is the Gluten-Free Cafe All Natural Canned Soup range, launched by Hain Celestial Group in the US in early 2010. The line

QUESTION: Generally, to what extent are you trying to do the following?

Avoid certain food or drinks for allergy or intolerance reasons Most or all the time

Occasionally

Rarely or never

100%

% of respondents

90% 80% 70% 60%

28% 65%

59%

52%

58% 27%

50% 40% 30% 20%

20%

10%

15%

20%

26%

22% 44%

21%

22%

20%

0% Europe

Americas

Asia Pacific

MENA

Global

Source: Datamonitor Consumer Survey, April/May 2009

Figure 1: Consumers in the MENA region are the most likely to avoid grocery products because of allergy/intolerance reasons

is touted as ‘the only line of glutenfree foods fortified with vitamins and minerals to provide nutrients that may be missing from certain diets and a prebiotic to aid in digestion’. While being a good illustration of how healthy innovation can add to product benefits from consumption, the inclusion of vitamins, minerals and prebiotics appears to indicate that just being ‘gluten-free’ may not be enough to stand out anymore.

Gluten-free beverages Despite some initial movement in terms of gluten-free alcoholic beverages, much progress has not been made by way of genuine innovation in the recent times. The opportunity exists to take a strong hold of the market through a concerted effort to manufacture and market compelling beverages.

Carving a niche The gluten-free market is still evolving and has yet to reach maturity. Market data forecasts and product launch trends show that there is still considerable growth that can be realised with the right product formulation and positioning. Manufacturers are attempting to capitalise on the opportunities emerging in this area by launching gluten-free products in an increasing number of categories and making tremendous efforts to improve them on a sensory level. The next few years will be crucial in determining whether or not this is a category with serious growth potential outside its core consumer group – celiacs. If non-celiacs can be encouraged to adhere to some form of gluten-free diet in the long-term, then the industry could thrive. Gluten-free products are disproportionately represented in snacking categories. The inherent indulgence that most snack categories exude may help to overcome a perceived sensory compromise associated with gluten-free formulations.

September 2010 | Modern Food Processing

INDUSTRY UPDATE Food Testing

Success in food safety

Adoption of best practices is the key Effective food regulatory mechanisms are essential to protect the health and safety of consumers. Hence worldwide, a rising number of food safety standards are emerging. In such a scenario, it would be prudent to adopt the appropriate standard that would best fit a company. Read on to gain insights into Global Food Safety Initiative benchmarked standards. Courtesy: DNV

Kathleen Wybourn

ood suppliers are constantly under the scanner and are required to prove that they can handle food safety risks from farm to fork. Complying with recognised standards is a part of their response to this scrutiny. But it remains to be seen whether the introduction of yet another global certification standard will help manufacturers to effectively deal with supply chain challenges or simply add to their confusion.

The trendsetter Kathleen Wybourn is Director â&#x20AC;&#x201C; Food Safety Solutions at DNV, a global, independent foundation involved in food safety certifications. Before DNV, she has worked with some of the leading organisations like GD Searle/Monsanto, Food Products Association, RQA, Inc, etc. Email: Kathleen.wybourn@dnv.com

The largest supermarket chain Wal-Mart sent a wave through the entire industry when they informed their food suppliers that they would adopt the Global Food Safety Initiative (GFSI) benchmarked standards. The message was clear: food producers must adhere to the GFSI framework or stop doing business with the giant grocer. The impact of the Wal-Mart wave went beyond the suppliers, who directly service the company. Food is a strategic growth engine for Wal-Mart and its

Modern Food Processing | September 2010

impact on the grocery supply chain in the US is immense. It is not surprising that when Wal-Mart embraced GFSI, other major brands followed their lead, given Wal-Martâ&#x20AC;&#x2122;s historic role as a market-maker.

The GFSI framework Post-farm gate suppliers now have eight different options for meeting a GFSI benchmarked standard. They need to comply with just one of the following standards: R British Retail Consortium (BRC) Global Standard Version 5 for Food R International Food Standard Version 5 (IFS) R Safe Quality Food (SQF) 2000-Level 2&3 R Dutch Hazard Analysis and Critical Control Point (HACCP) standards R FSSC 22000 (Food Safety System Certification) R Global Aquaculture Alliance BAP (Best Aquaculture Practices) (GAA Seafood Processing Standard) R Global Red Meat Standard Version 3 R Synergy 22000 Pre-farm gate suppliers now have four different options for meeting a GFSI

Food Testing INDUSTRY UPDATE

benchmarked standard. They need to comply with just one of the following: R CanadaGAP R GlobalGAP. R SQF 1000 Level 2 R PrimusGFS It is anticipated that GFSI Guidance Document Version 6 will be approved in late 2010. Version 6 contains additional requirements for schemes that apply for benchmarking, thus hopefully preventing the continued proliferation of standards. More standards only add unnecessary complexity and costs, which in fact takes the focus of food safety professionals away from keeping the global supply chain safe.

Food safety scheme Recently, a new food safety standard emerged on the scene – the FSSC 22000. The fact that it is engineered from two pre-existing standards ISO 22000 and PAS 220, makes it more significant than any other standard. Leveraging the best practices of these two standards, FSSC 22000 offers both, a broad framework for quality and continual improvement and specific criteria for eliminating risk from the food manufacturing process. Perhaps of greater importance is the fact that GFSI has formally embraced FSSC 22000 as part of its framework.

FSSC 22000 food safety standard R

Specifically targeting the food manufacturing sector R Based on the existing internationally recognised standard ISO 22000: 2005, PAS 220 and ISO TS 22003. Certification according to FSSC

Courtesy: DNV

22000 will be accredited under the standard ISO 17021 R Manufacturers already certified against ISO 22000 will only need a validation of the ISO 22000 audit and an additional review against PAS 220 requirements R Requires certification by an approved certification body

Auditing schemes The movement towards a more repeatable set of best practices, accepted across the industry and overseen by independent third parties, is imperative. For years, suppliers have been dealing with disparate secondparty and private auditing programmes, choosing them primarily based on the

In addition to improved uniformity, plants and companies will benefit from efficiency improvements when third-party certification adheres to one of the GFSI benchmarked schemes. preferences of their biggest customers. While companies have achieved tactical levels of quality control using these methods, a lack of longitudinal uniformity has left the food supply ecosystem vulnerable to inconsistent protection. This inconsistency puts the consumer safety as well as business at risk. In addition to improved uniformity, plants and companies will benefit from efficiency improvements when thirdparty certification adheres to one of

Courtesy: DNV

the GFSI benchmarked schemes, having the potential for replacing dozens of second party customer proprietary schemes and satisfying the same customers’ needs. The daily pressures that suppliers face to retain their customers, have given rise to a myriad of auditing schemes. The standards have become entirely spread out, at a time when the global supply chain is becoming more interdependent. Food suppliers in the European Union had to grapple with about 50 different auditing schemes before coalescing around the GFSI benchmarked standards. A common framework is clearly the way forward. This is not to say that GFSI, or one of the benchmarked standards in particular, would prevent cases such as the Chinese melamine scandal from recurring. But the less uniform the preventive measures are, the more frequent, damaging, and long-lasting the problems will be. What matters is that, collectively, one can achieve the fundamental principles of standardisation: R Consistency (the auditing procedures are the same in every facility) R Accountability (clear documentation, control points, audit trails) R Portability (a manufacturer understands the exact meaning and value when a supplier claims to be certified to a particular standard, and vice versa)

Choosing the right standard Each scheme has its own history and unique set of auditing protocols. Not surprisingly, the value of each approach varies from company to company. The obvious question that food companies are asking is: Which standard should they embrace, and how to implement it effectively in their facilities? It is neither prudent nor practical to say that one standard is better than another. The answer to “which standard is best” is one of the GFSI benchmarked standards. Food suppliers need to only certify themselves to one of the benchmarked standards.

September 2010 | Modern Food Processing

SMART LOGISTICS

Beating inflation

Tide over uncertainties strategically With uncertainty looming large on supply chain managers in the food industry on account of the ever-increasing prices of food items, coupled with the demand-supply gap; they are looking at ways to manage cost equations without impacting the profit margins. Read on to gain insights on a few strategies that are simple, yet effective in combating inflation. Courtesy: Greater Chicago Food Bank

Abhijit Upadhye

ood inflation in India has been hovering around the double-digit mark for close to two years now. Whether it is on account of supply-demand gap or mismanagement of the food value chain, the reality is that it is impacting everyone. In the last few years, poultry prices have increased by more than 60 per cent, milk prices have almost doubled and even sugar prices went on a roller-coaster ride. There does not seem to be a single raw material or commodity that has not been impacted since 2007. In these uncertain times, the question that arises is, how to manage the input cost equation and also meet the profitability goals. Here are some of the strategies that can help supply chain managers tide over the uncertainty:

Hedging Hedging of commodity purchases or foreign exchange exposure over the mid to long term provides the much-needed predictability during uncertain times. While hedging as a purchasing strategy never guarantees the lowest cost price, it definitely ensures a stable or predictable price. This in turn helps the marketing team and top

100 Modern Food Processing | September

2010

management in taking a long-term view on consumer pricing. Case study: Sugar was featuring in the top three commodity buys for a large biscuit manufacturer. In 2009, sugar prices in India flared by almost 100 per cent. Because of their spot buy strategy, the company was caught by surprise, resulting in a huge gross margin erosion. Post this incident, the biscuit manufacturer put together a strong commodity buying team which was responsible for hedging as well. This predictability in key raw materials has helped the manufacturer to create stronger business plans and goals.

Pricing protocols While hedging helps in providing visibility and predictable pricing of key commodities, a pricing protocol does the same for other key raw materials. With all the key vendors, it is important to work out a pricing protocol that brings in a win-win scenario for all and works on some of the following key fundamentals: R Assured supply commitment R Quality R Cost adjustment basis movements in input raw materials R Cost adjustment basis changes in conversion costs.

SMART LOGISTICS

The review mechanism should be done quarterly or in six months and should involve all the parameters mentioned above.

Backward integration While some part of the food inflation is on account of a demand-supply gap, a lot of it is also because of inefficient storage & transportation practices, and mismanagement by middlemen. Backward integration means taking control of the value chain of raw materials. Apart from helping on the cost front, this strategy also helps in giving predictable and assured supply. Case study: One of the largest frozen food manufacturers in the country was dependent on few large poultry integrators for supply of boneless chicken. In 2009, during the launch of a new product, they faced a huge supply crisis. As the poultry integrators were in a monopolistic situation, prices were increased overnight impacting profitability. Learning from this incident, plans were put in place to de-risk part of its sourcing by backward integration. As a first step, they invested in a deboning line and around 30 per cent of their requirement is now supplied by their own facility. Not only did this enable them in improving the country’s boneless capacity, but also helped in reducing their purchasing cost by more than 10 per cent in 2010. Over the next five years, they have chalked out plans for further backward integration.

Improve farm and processing yields India’s per hectare productivity of paddy has moved from 668 kg in 1950 to 2,203 kg in 2010. However, China’s average yield is 6,336 kg per hectare, and they are already working on a strain that will deliver around 13,500 kg per hectare. This is true for almost all commodities that India produces. Companies focussing on improving yields at farm level and processing level are able to not only contain the inflation, but also reduce their procurement prices.

While some of the strategies mentioned above might not always ensure a reduction in sourcing costs, they will definitely help in providing a predictable and competitive pricing. Case study: In India, a buffalo yields around 1,100 litre of milk per lactation cycle, while in the US the average yield is around 11,000 litre. While this would be a huge deterrent for certain milk processors, a large milk processor in the country took on the challenge and invested in high-end technology. The average yield in this company’s farm is around 2,500 litre per lactation cycle, which is 2.5 times India’s average; thus providing it a huge competitive advantage.

Optimise transportation network

Courtesy: Schenker

Transportation and logistics add a significant portion to the product cost and hence, it is important to focus not just on the purchasing price, but also on the entire value chain. The effort should be to eliminate non-value

Courtesy: Greek Shares

added activities and reduce food miles. Having supply sources closer to demand and raw material sources closer to processing facilities help reduce transportation cost. However, it is important to take a holistic view of the entire product cost (and not just the cost of transportation). Network optimisation helps in identifying right locations for supplier and warehousing facilities, thereby providing the most efficient cost of distribution. Case study: A large food manufacturer growing at a 40 per cent Compounded Annual Growth Rate (CAGR) had to add capacity to meet future demand. Post detailed evaluation of their network, the manufacturer decided to add capacity near its largest raw material source. This helped in reducing almost 15 per cent of its total cost.

Taking the right step While some of the strategies mentioned above might not always ensure a reduction in sourcing costs, they will definitely help in providing a predictable and competitive pricing. Uncertain and inflationary times call for out-of-box thinking and supply chain professionals have to rise to that challenge. Abhijit Upadhye is the Director of Supply Chain, Menu Management & New Business Channels at McDonald’s India and has an extensive experience of over 14 years. He has done his management studies (in marketing) from NMIMS, Mumbai and BE in Mechanical Engineering from VJTI, Mumbai. Email: abhijit.upadhye@mcdonaldsindia.com

September 2010 | Modern Food Processing

101

CURTAIN RAISER

A forum for novelty in processing The processed food market – especially the ready-to-eat products – is gaining momentum in India. Taking due cognizance of the fact, the International FoodTec 2010 trade fair is being held in Mumbai to provide a competitive edge to players associated with the industry.

ndia, with its huge population, has emerged as one of the major consumer markets in the world. With food being one of the basic needs and the changing trends in the food habits from conventional foods to ready-to-eat or processed foods make the food processing industry one of the key industries, touching the lives of millions of people.

refrigeration & air-conditioning technology. It will also covers transportation and storage including the dairy technology, equipment for confectionery & snack production and service firms. Along with this show, Assocham and Indian Dairy Association (IDA) will host Agri & Food Conclave and seminar on ‘Yoghurt - Health food of gennext’, respectively.

The event

Concurrent shows

Analysing the needs of this fast growing segment, Koelnmesse, one of the leading trade fair organisers in the world, launched the first edition of International FoodTec in the year 2002. Since then, International FoodTec India with its concurrent events – Dairy Universe India, and Sweet & Snack Factory India catering to the technological requirements of dairy and snack industry respectively – have grown from strength to strength to become India’s one of the leading trade fairs for the food processing industry. The 7th edition of International FoodTec, will take place from September 30 - October 03, 2010, at hall number 1, Bombay Exhibition Centre, Mumbai. The exhibition will cover all the arenas in the food processing cycle, right from food processing technology, automation, food safety & quality management to operating materials,

Over 400 exhibitors, including group participation from China, France, Germany & Taiwan, are expected to participate in the show. International FoodTec India will be organised concurrently with IndiaPack – an international packaging exhibition & conference organised jointly with The Indian Institute of Packaging (IIP) – and Asia Coat & Ink Show – an exclusive show on printing inks & coatings organised jointly with All India Printing Ink Manufacturers’ Association (AIPIMA).

102 Modern Food Processing | September

2010

The right platform The event is expected to serve as a platform for all the stakeholders in the food processing industry to exchange knowledge, expand business horizons, gain technological know-how and meet prospective clients. It is likely to offer advantage to both exhibitors as well as visitors of the show.

October 22,2010 | Mumbai

YOUR COMPETITORS & CUSTOMERS CAN BE YOUR PARTNERS IN PROGRESS! TO KNOW MORE, BE A PART OF THIS UNIQUE CONFERENCE Agenda Exploring The Potential Of Competitive Collaboration | Initiating & Developing Trust In Relationships | Overcoming Common Obstacles

Panel Of Speakers Jasjit Sethi, CEO, TCI Supply Chain Solutions Anshuman Singh, MD & CEO, Future Supply Chain Solutions Vivek Sarbhai, VP, Logistics & Customer Operations, Cadbury India Juzar Mustan, CEO, AFL Logistics Anil Khanna, MD, Blue Dart Express N Sukumar, Sr VP, Supply Chain, Reliance Industries Prof N Viswanadham, Executive Director, Centre For Global Logistics & Manufacturing Strategies, Indian School Of Business

Howard James-Scott, Chief, SCM, GATI

Lloyd Sanford, President, Marketing & Commercial, Vikram Logistics Arif Siddiqui, Director, Coign Consulting Bala Irulandy, Operations Director, HCL Technologies Sriram Venkateswaran, Director, National Supply Chain & QA, Hardcastle Restaurants (McDonalds India) Yogesh R Antad, GM, Supply Chain Functional Excellence, Cummins India Oscar de Bok, SVP South Asia & Indo China, DHL Supply Chain Pranil Vadgama, President, CHEP India

Invest your time to participate as an evolved speaker or an involved participant and get enriched.

WATCH OUT FOR

For details, email: prachi.mutha@infomedia18.in | call: +91 22 3003 4650 Brought to you by

In association with

EVENTS CALENDAR

National

Pune

Ahmedabad

Indore

Chennai

Maharashtra Nov 19-22, 2010 Auto Cluster Exhibition Ctr, Chinchwad

Gujarat Dec 10-13, 2010 Gujarat University Exhibition Hall

Madhya Pradesh Jan 7-10, 2011 Maharaja Shivajirao School Grd, Chimanbaug

Tamil Nadu Mar 11-13, 2011 Chennai Trade Centre

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

Mumbai Maharashtra February 17-19, 2011 Bombay Exhibition Centre

Concurrent Shows

One of the largest advanced design and manufacturing events in India featuring Machine Tools, Hydraulics & Pneumactics, Process Machinery & Equipment, Automation Instrumentation, Packaging & Auxiliaries, IT Products, Electrical & Electronics, Material Handling and Safety Equipment.

International Foodtec India 2010 An international exhibition and conference for food processing, packaging, ingredients, beverages, cooling & refrigeration; September 30-October 03, 2010; at Bombay Exhibition Centre, Mumbai For details contact: Cidex Trade Fairs Pvt Ltd 1, Commercial Complex, New Delhi 110 076 Tel: 011-2697 1056; Fax: 011-2697 1746 Email: info@cidex-tradefairs.com

PROMACH 2010 An exclusive exhibition for the process plant & machinery industry; October 01-04, 2010; at Bangalore International Exhibition Centre, Bengaluru For details contact: Bangalore International Exhibition Service 10th Mile, Tumkur Road, Bengaluru 562 123 Tel: 080-6583 3234 Email: dayanand@bies.co.in

For details contact: Infomedia 18 Ltd, Ruby House, 1st Floor, J K Sawant Marg, Dadar (W), Mumbai 400 028. Tel: 022-3003 4649/51 Fax: 022-3003 4499 Email: shamal@infomedia18.in

For details contact: UBM India Pvt Ltd Sagar Tech Plaza, SakiNaka Junction Andheri (E), Mumbai 400 072 Tel: 022-6612 2600, Fax: 022-6612 2626 Email: bipins@ubmindia.com

Food & Bev Tech 2010 An exhibition & conference for the food and beverage processing industry; October 29-31, 2010; at Bombay exhibition Centre, Mumbai For details contact: Anil Padwal, CII (Western Region) 105, Kakad Chambers, Dr A B Road, Worli, Mumbai 400 018 Tel: 022-2493 1790 Fax: 022-2493 9463 Email: anil.padwal@cii.in

Fax: 011-2697 1746 Email: guptah@md-india.com

Poultry India 2010 An international exhibition for the poultry industry; November 24-26, 2010; at Hyderabad International Trade Exposition Centre (HITEX), Hyderabad For details contact: Indian Poultry Equipment Manufacturers’ Association (IPEMA) E-36, ‘D’ Road MIDC, Satpur Nashik, Maharashtra 422 007 Mob: 98220 94653 Email: info@ipema.co.in

Food Technology Show 2010

An exhibition and conference for the packaging & processing industry that will be held along with drink technology India; November 18-20, 2010; at Bombay exhibition Centre, Mumbai

To be held concurrently with PackPlus 2010, this event will focus on technologies, equipment, materials & services for food production & processing, baking, freezing, refrigeration & climatic engineering, etc; December 03-06, 2010; at Pragati Maidan, New Delhi

For details contact: Himanshu Gupta Messe Düsseldorf India Pvt Ltd 1, Commercial Complex 2nd Floor, Sarita Vihar, New Delhi 110 076 Tel: 011-2697 1745 / 1056

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

International PackTech India 2010

Fi India 2010 An event that would feature companies showcasing ingredients for food & beverages, dietary supplements, functional/health foods, nutraceuticals, natural foods; October 22-23, 2010; at Bombay Exhibition Centre, Mumbai

104 Modern Food Processing | September

2010

EVENTS CALENDAR

International INTERMEAT 2010 An exhibition for meat, cold meats and sausage; September 12-15, 2010; at Düsseldorf Exhibition Centre in Dusseldorf, Germany For details contact: Messe Düsseldorf GmbH Stockumer Kirchstrasse 61 D-40474 Düsseldorf, Germany Tel: +49 - 211 - 4560 900 Fax: +49 - 211 - 4560 668 Email: info@messe-duesseldorf.de

FI South America 2010 International food ingredients exhibition; September 21-23, 2010; at Transamérica Expo Center in Sao Paulo, Brazil For details contact: United Business Media Industrieweg 54, PO Box 200 3600 AE Maarssen The Netherlands Tel: +31 34 65 59 444 Fax: +44 (0) 20 7921 8059 Email: jblack@cmpinformation.com

SAHARA 2010 An agricultural exhibition showcasing latest products and trends for Africa and the Middle East; September 25-28, 2010, at Cairo International Convention & Exhibition Centre, Cairo For details contact: Sahara Expo 347 Sudan Street Sahafeyeen Giza, Egypt Tel: +20 2 3346 4216 / 3344 7980 Fax: +20 2 3347 1155 Email: info@saharaexpo.com

Saudi Agro-Food Industries 2010 A trade fair showcasing the latest in food products, processing and packaging technologies; October 04-07, 2010; at

Riyadh International Exhibition Centre in Riyadh, Saudi Arabia For details contact: Riyadh Exhibitions Co. Ltd Olaya Road Postfach, P O Box 56010 SA - 11554 Riyadh, Saudi Arabia Tel: +966 1 454 1448 Fax: +966 1 454 4846 Email: esales@recexpo.com

IPA 2010 International food processing and equipment week; October 17-21, 2010; at Paris Nord Villepinte in Paris, France For details contact: Comexposium Immeuble le Wilson 70, avenue du Général-de-Gaulle 92058 Paris-La Défense, France Tel: +33 (0) 1 7677 1111 Fax: +33 (0) 1 7677 1212 Email: infos@exposium.fr

Food Processing & Packaging Indonesia 2010 International exhibition on food processing & packaging machinery, equipment, materials & services; October 27-30, 2010; at Jakarta International Expo in Jakarta, Indonesia For details contact: Krista Exhibitions Jln.Blandongan 28 DG Jakarta 11220, Indonesia Tel: +62-21 6345861 Fax: +62-21 6340140 Email: info@krista-exhibitions.com

Ingredients Russia 2010 An event for food ingredients, additives and flavours; November 23-26, 2010; Crocus-Expo IEC, Moscow For details contact: ITE Group Plc 105 Salusbury Road

London, NW6 6RG, The UK Tel: +44 (0) 20 7596 5000 Fax: +44 (0) 20 7596 5111 Email: enquiry@ite-exhibitions.com

SIFSE 2010 Shanghai International Fisheries & Seafood Expo; December 10-13, 2010; at Shanghai Everbright Convention & Exhibition Center, Shanghai For details contact: Shanghai Gehua Exhibition Service Co Ltd 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 30-February 02, 2011; 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 E-mail: info@koelnmesse.de

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

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

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Bringing technology to the fore The food processing industry is witnessing a spurt in its growth. However, the difference in the cost of raw materials and the price paid by the end-user for the final product acts as an impediment to further growth. To sort out this difference, the industry needs to adopt the best practices and latest technologies, for which the 2nd edition of India Foodex 2010 was held from August 20-22 at Bengaluru. Shivani Mody reports...

Ribbon cutting ceremony

n the wake of the initiatives by the Union Ministry of Agriculture, a new marketdriven farming approach is emerging in India. Moreover, with goverment putting more thrust on increasing the level of food processing in India, the sector is all set to grow. In order to provide a platform for networking and learn about the technological advancements in this domain, the 2nd edition of India Foodex 2010 - along with GrainTech and Agri Tech India 2010 - was held recently at Palace Grounds, Bengaluru.

Enthusiasm all around About 350 companies from 18 countries displayed their products at the exhibition. The companies from the Netherlands, Belgium, Italy, the US and Germany viewed the event as a launchpad to showcase their technology for the domestic market. Also, Chinese and Taiwanese manufacturers displayed a variety of equipment that they claimed to be cost-effective. In his inaugural address, Professor M Mahadevappa, Director, JSS Rural Development Foundation, Mysore, said, “Events with a focus on farmers should also have participation from bankers and NGOs. It is with

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the financial help from bankers that the farmers will be able to procure modern equipment. Besides, direct access will make the process of getting finance quicker.”

Technology on display The exhibition had on display machinery with the latest technological advancements that holds immense benefits for food processors. While elaborating on the potential of the food processing industry, Dr G K Vasanth Kumar, Additional Secretary to Karnataka Government, Food Processing and Harvesting Technology, stated, “For the food processing sector to perform well globally, there needs to be proper regulation. The industry is sure to grow with transparency, traceability of raw materials and labelling & certification programmes.” While talking about the benefits of attending an event of this scale, Sujit Pande, Manager Marketing & Business Development, Buhler India, observed, “Our strategy is to use the event as a platform to directly interact with customers and understand their needs & expectations. An exhibition is the best way to introduce new machines and concepts. At the event, we are showcasing our colour-sorting

REPORT

machine in flour milling. This product generated good response at the trade fair. Such a product is also essential for the Indian market, as the industry is now witnessing consumers who are more health and quality conscious.”

Focus on green technology Green technology, including greenhouse farming procedures, use of energy-efficient machines, chemical-free farming practices among others, is making its mark in the food processing industry. Avinash Ramchandra Wagh, Regional Manager (India & Middle East), GrainPro Inc, informed, “We have a unique grain storage product for both, the farmers and households. The cocoon-like storage inhibits growth of fungi, and meets the demands of organic growers. The material is UV-resistant and has rodent-resistant design.” Talking about the growing adoption of green technology, Harbans Lal, VP, Pennwalt Ltd, averred, “Our food processing machines are customised for the Indian users. The event is a good platform for us to create awareness about our coffee and tea packaging machine, which comes under green technology.”

Trials for new products Many MNCs saw the exhibition as an ideal place to showcase new products, and meet distributors & end-users under one roof. Sumalai Booranarungsak, Executive Assistant, Penta Impex Ltd (Thailand), said, “Our Thai sauces and soup pastes are exported to the US and Australia. India is a growing market and we are looking

Visitors thronging the stalls

to reach out to a larger audience. We are even customising products for the Indian palate. At the event, we were able to collaborate with our distributors and even discuss business opportunities with new users.” Shyam Pyarauk, Representative Director, Blue Horse Corporation, said, “We are conducting trials of some of our products from Turkey and Japan. One needs to create awareness about the products and gauge their acceptance levels before looking at mass distribution.” Among the 50,000 plus visitors witnessed during the three-day event, there were many IT professionals from Tamil Nadu, Kerala, Maharashtra and Karnataka, who were aspiring to become entrepreneurs and start their business in the food industry. They visited the event especially to procure modern equipment. Farmer delegations from Uttar Pradesh, Gujarat, Maharashtra, Madhya Pradesh and Bihar had been a part of it to understand new concepts, technical aspects for growing & processing crops, and gain insights on the latest equipment.

Two-day international conference To add value to the exhibition, a twoday international conference was held jointly by the organisers – Media Today Pvt Ltd and All India Food Processors’ Association (AIFPA). The conference ‘Food security through technology,’ touched upon all the aspects of food sector from production to distribution, processing and preservation. Rajesh N Jagdale, Chairman-South Zone, AIFPA, said, “The event was beneficial as it provided a close link between both the ends of the food chain – from producers to consumers. It also served as a connecting point for farmers towards exports & enabled them reap additional benefits. One of the topics for deliberation was the new challenges in the context of the growing presence of organised

New products on display

retail and rising demand for high quality food products in both, domestic and export markets. Some of the other issues discussed included availability of foodgrains, oilseeds & spices; status of processing industries; potential for technological upgradation; and scope of the Indian food industry.

Tapping the opportunities M B Naqvi, CEO, Media Today Pvt Ltd, said, “The food processing industry is currently growing, but it can happen at a faster pace, if domestic consumption increases. Moreover, the products will be well-accepted, if quality, freshness and taste of these products are maintained. Further, many niche segments are rising in the processed food category such as specific ingredients (for children, older people, etc) and nutraceuticals among others. To ensure the better quality of products and longer shelf-life, the packaging technology too has to evolve. To meet all these requirements, the industry has to understand, adopt and develop modern technology.” The other reason for the growth of the Indian food processing industry is linked to the growing proportion of the working population. It has opened up a huge domestic market for ready to eat foods and branded products. Given the fact that the food processing industry has an enormous growth potential, the players need to rise up to the opportunity. Events such as the India Foodex 2010 are expected to play a vital role in bringing all stakeholders on one platform.

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A knowledge platform to nurture growth

Dr D B A Narayana addressing the audience at the event

A budding sector, with few players in India, the functional foods and beverages (FF&B) industry has a lot of untapped potential in the country. The FF&B 2010 conference provided unique insights into this nascent industry. With a vision to propel this promising industry to new heights, the conference unveiled the business prospects emerging in this domain. Mahua Roy reports…

ith around 100 participants representing the FF&B industry, the Functional Food and Beverages (India) Conference 2010 (FF&B 2010) held on July 29, 2010 in Mumbai, focussed on creating a new niche for FF&B. The conference was organised by UBM India.

Research potential While delivering the inaugural address Dr V Prakash, Director, Central Food Technology Research Institute (CFTRI), Mysore, presented an optimistic outlook for the FF&B industry. He stressed on the need for reviving ayurveda, citing an interesting fact that Indians are much less prone to Alzheimer’s because of curcumin (constituent of haldi) consumption. “Traditionally, Indians follow strong and healthy eating habits. The need of the hour is to conserve that habit and demonstrate it in a scientific way to the world,” he added. He highlighted the need for promotion of Indian R&D and on aspects like molecular cooking, subtraction ingredients (cholesterol-free/ sugar-free/caffeine-free) & nano-emulsions.

Market prospects Rashmi Upadhya, Managing Consultant (Strategy), PricewaterhouseCoopers, delibrated upon the FF&B market in India. She informed that currently the US, China and Japan account for 70 per cent of functional foods market in the world, whereas

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India shares only 1 per cent of the same. It is expected that increasing awareness and rising levels of income would enable this segment to reach $ 2.3-billion mark by 2014 in the country. “The FF&B market in India is largely untapped and focusses only on the upper class with premium priced products. Hence, there is a need for attracting other sections of the society.” she said. While speaking on the regulatory framework, Dr D B A Narayana, Director (Regulatory Affairs), Hindustan Unilever, said that Food Safety and Standards Act (FSSA), encompassing all preexisting regulations, offered a single window solution to the food industry. He urged the participants to read the draft of FSSA and ask the FSSAI to update the food laws.

Ending on a healthy note The FF&B industry can look forward to capitalising on the changing consumer lifestyles. Specialised products developed for niche segments (women, children, elderly, etc) can prove to be rewarding for this industry. There is a lot of scope for R&D in terms of product innovation. Companies need to focus on anti-ageing, beauty, immunity boosting, obesity & weight management and other lifestyle diseases. India has an exceptional reservoir of scientific minds. The conference showed that if harnessed in the right direction, this knowledge can transform itself into practical technology, making India a world leader in this industry.

PRODUCT UPDATE

Powder disperser

Water purification system

Quadro Engineering Corp offers ‘Quadro Ytron® XC’ powder disperser for the preparation of ice-cream mix. It is an in-line mixing and dispersion unit designed to incorporate large quantities of powder into a liquid stream (ie, single-pass) with minimal air entrainment. Not only does this innovative technology reduce dispersion times by 80 per cent, but product characteristics are consistent from batch-to-batch and there is no plugging of screens, typical with other in-line blenders/dispersers. The company offers two sanitary models, which are designed to meet 3-A Sanitary Standards, offering liquid throughputs of up to 200 gpm. The company’s ‘ShearFX Series’ shear pump is available in four different models ranging from 10-75 hp depending on desired capacity, up to a maximum of 375 gpm. The multiple tooling styles are available allowing a balance between shear energy and pumping efficiency for each process. The design of the pump and tooling offers ease of installation and maintenance while meeting stringent CIP and SIP hygienic standards. All models comply with 3-A Sanitary Standards.

Millipore (India) offers ‘Direct-Q3’ water purification system. It is designed for simple and intuitive operation. The system guarantees the production of high-quality ultrapure water (Type I), providing a superior alternative to bottled water or DI water. In addition, the system produces pure (Type III) water that is stored in an integrated reservoir and can be used for basic applications. It saves on electricity, water consumption, maintenance and time. The system allows delivery of a fixed volume of Type I water and automatically shuts off once the selected volume has been delivered. For applications requiring low organic contaminant levels, it incorporates a dual wavelength UV lamp to produce water with <5 ppb TOC, making it suitable for HPLC, GC, ILC and TOC analyses. It is available with a built-in 185 and 254 nm UV lamp for production of low TOC water required by organic-sensitive applications. The maintenance is reduced to a simple cartridge change once or twice a year. It is ideal for laboratories that do not have easy access to pre-treated water and need between 1 and 10 L of ultrapure water per day.

Quadro Engineering Corp Waterloo – Canada Tel: 519-884 9660, Fax: 519-884-0253 Email: sales@quadro.com

Temperature loggers

Knives and blades Apex Shears offers food processing knives and blades, which include vegetable/meat/ poultry/chapati circular slicing blades, meat/fish processing bandsaw blades, bread slicing knives, etc. The company also manufactures all types of perforation and packaging knives, VFFS machine knives, potato chip slicing blades, 3-hole industrial razor blades as well as custom/OEM blades as per user requirements for all machines and cutting applications. These blades are made from a variety of steels including food grade stainless steels, carbon steels and/or alloy steels suitably selected for the application.

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

Apex Shears Pvt Ltd Mumbai - Maharashtra Tel: 022-2379 1113, Fax: 022-2373 7707 Email: info@apexshears.com

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Millipore India Bengaluru - Karnataka Tel: 080-3922 4000, 3922 4001, Fax: 080-2839 6345 Email: bioscience_info@milliporeindia.com

2010

PRODUCT UPDATE

Cooking mixers Tricon offers cooking mixers from Stephan, Germany. These mixers perform automated processes via PLC, which include mixing, dispersion, de-aerating (vacuum), indirect steam cooking and jacket cooling. Significantly shorter batch times are possible resulting in tremendous savings in energy and time. The advantages offered by the mixers are minimum space, the tilted vessel design ensures easy filling and emptying of vessel; the rotating scraper optimises mixing, prevention of oxidation, retention of flavours and colours, easy operation & cleaning and repeated final product quality. These cookers are ideal for cold & hot process â&#x20AC;&#x201C; frying of onions/spice pastes, curries, meat, poultry, ketchup, pizza sauces, dressing, mayonnaise, and marinades, baby food, hommus, saag/spinach pastes, chilly sauces, soups, rice and vegetables. These are available in 400, 800, 1,200 litre sizes (corresponding capacities 800, 1,600, 2,400 litre/hr). The company also offers cookers in models KM, UM/SK and VMC with emulsion process. Tricon Pune - Maharashtra Tel: 020 -2565 2205/2451, Mob: 098901 92832 Email: triconfood@gmail.com

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PRODUCT UPDATE

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

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PRODUCT UPDATE

Hand sanitiser Industrial Equipwash offers hand sanitiser, which automatically dispenses disinfectant in the hands. The dispenser prevents from touching unhygienic levers, taps, knobs & soap cakes, thus preventing cross-contamination and maintaining complete cleanliness. The user is required to put his hands into the unitâ&#x20AC;&#x2122;s interior. The sensor detects the hands and automatically dispenses 0.5 ml of disinfectant solution (hydro-alcholic based), which rapidly evaporates. The advantages of this product are that the pathogens on hands are eliminated by the disinfectant. The cleaning cycle is completed in less than 10 seconds (maximum), and only 0.5 ml of disinfectant is utilised for cleaning cycle. Moreover, the dispenser is easy to install, operate and maintain. Industrial Equipwash Inc Mumbai - Maharashtra Tel: 022-2679 7941, Fax: 022-2679 2936 Mob: 098692 31815 Email: iewi@vsnl.net

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PRODUCT UPDATE

Cold room Colpan Poly Panel Industries offers cold room. Its surface is made of GI prepainted sheet, SS sheet, GI plain sheet and aluminium sheet. It is available in thicknesses of 60, 80, 100, 125 and 150 mm. Its wall, floor, door frame, door leaf, tee walls, corners, ceilings and PVC gaskets are available in a variety of heights and widths. It is fitted with flush-type big door that could have a long-term heavy duty usage. Its window/ hatch door comes with a frame and can be fitted anywhere in the installed cold room. Door accessories consist of an importedmake handle, closer and chromium-plated hinges. The door leaf is made of fibreglass reinforced plastic lining. This does not dent, rust, wrap or scratch and can easily bear the impact of roll-in trolleys/carts. The cold room comes with double toughened glass vacuum due to which it becomes transparent and there is no need to frequently open the door. Its advanced high-density 40 kg/m3 of Puf insulation ensures insulating efficiency and uniform cell structure or density that can be provided as per the userâ&#x20AC;&#x2122;s demand. Colpan Poly Panel Industries Ahmedabad - Gujarat Tel: 079-6542 6394, Fax: 079-2297 1352 Email: panel@colpangroup.com

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PRODUCT UPDATE

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

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PRODUCT UPDATE

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

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PRODUCT UPDATE

Mixer cookers (cheese cookers) Tricon offers models UM/SK 24, 60, 80, 130, 200 litre mixer cookers (cheese cookers) manufactured by Stephan, Germany. These have compact construction and are ideally suited for low-cost production of consistently highquality finished processed cheese varieties, mayonnaise, ketchup, etc. By the combination of all processing stages into one machine in one programmed cycle, this cooker completes the entire processing in a short time and reduces the number of transfer points. The various processing stages include size reduction, mixing, blending, emulsifying, heat treatment or cooking up to 80째C, pasteurising up to 100째C, sterilisation up to 125째C, vacuum processing, cooling, and de-moisturising with vacuum/condenser cooling - indirect cooling/heating through double jacket, etc. These cookers can also operate in tandem with a patented UHT module for product temperatures up to 145째C for bacteriological stability to extend shelf-life of cheese to about 12 months. Tricon Pune - Maharashtra Tel: 020-2565 2205/2451, Mob: 098901 92832 Email: triconfood@gmail.com

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PRODUCT UPDATE

Control valve Forbes Marshall offers â&#x20AC;&#x2DC;Ecotrolâ&#x20AC;&#x2122;, control valve, which is robust, compact and light in weight. It comes with a pneumatically operated, easy field reversible multispring diaphragm actuator and a sturdy, pipe-less and vibrationresistant mounted digital positioner. It is also available with handwheel (optional). Tubeless mounting, with the digital positioner and the option of bi-directional communication is the key feature of this control valve. The double use of auxiliary energy is by using pneumatic multi-spring diaphragm actuator with the option of permanent spring case ventilation. It is designed according to ANSI, with standardised trims. The prevention of leakage and bypass leakage is by a limited compressive load acting on both encapsulated gaskets. It is used in oil & gas, chemical & petrochemical, pharmaceuticals, distillery & food, fertiliser, steel and metal, power, industries etc. Forbes Marshall Pvt Ltd Pune - Maharashtra Tel: 020-2714 5595, Fax: 020-2714 7413/7593 Email: vmktg@forbesmarshall.com

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PRODUCT UPDATE

Waterjet cleaning machines Technical Trading & Services offers fully automatic centralised high-pressure waterjet cleaning machines, which are used for industrial applications. These systems are designed to meet the full cleaning and sanitising demand of the industry to their required level. Some of the advantages of the centralised systems are: no machine movements inside the processing hall, availability of pressurised water at required locations, reduce water consumption, cleaning time, effect of cleaning is high & with capacity to undertake many jobs, which are impossible by hand or any other cleaning methods. These machines are offered with time delayed stop system, ie, the units switch off totally within 30 seconds, if not used. This helps to reduce the wear & tear of the units. The waterjet cleaning machines are designed for large food processing, pharma, chemical, poultry, beverage and other processing industries. Technical Trading & Services Bengaluru - Karnataka Tel: 080-2580 5767, Mob: 098453 47977 Email: sales@tts.net.in

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PRODUCT UPDATE

Turbine blowers/exhausters Acmevac Sales offers turbine blowers/exhausters, which is available from 0.5 HP to 15 HP. These are regenerative blowers and can be used for vacuum or pressure applications. The impeller is directly mounted on the motor shaft itself. There are no rubbing parts, and hence, these blowers are practically maintenance-free and absolutely oil-free. Noise levels are considerably reduced as silencers are provided. These blowers are used in areas where oil-less, continuous non-pulsating air flow is required. These turbine blowers/exhausters are used in air tables, agitation/ aeration, vacuum hold down & pick up, air blow-off, aquaculture, pneumatic conveying, etc. Acmevac Sales Pvt Ltd Mumbai - Maharashtra Tel: 022-2837 5837 Fax: 022-2836 4977 Mob: 092233 88105 Email: acmevac@vsnl.com

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

A n i nv

e i t e t h a t r e wa r d s a s w

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

ll...

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, writeups, etc… Thanking you, Yours sincerely,

Manas R Bastia Editor Infomedia 18 Limited ‘A’ Wing, Ruby House, J K Sawant Marg, Dadar (W) Mumbai 400 028 India

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

PRODUCT UPDATE

Twist wrapping machine A M P - Rose offers ‘6IST’ double twist wrapping machine for wrapping chews, toffees, hard candy and éclair products. It is available with a number of standard features such as Teflon liner in the feeder bowl to prevent product damage, no sweet no wrapper sensor, paper breakage sensors, paper jamming sensor, total product wrapped counter and VFD speed control. It also comes with a number of optional features such as vibratory feeder with automatic control sensor, feed tray heating to prevent product sticking for sticky products, hot air blower to improve paper twisting on difficult wrapper and full CE certification, if required. A M P - Rose Pvt Ltd Bengaluru - Karnataka Tel: 080-2847 3611-14, Fax: 080-2847 3615 Email: sales@amprose.co.in 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

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Please tick against the box of product(s) you are interested in: Mention specific product/service you need, Complete all the details on this form. Tear the form & mail it to us. (It is a prepaid mail)

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

Aging vat................................................

Dust control door ................................... Electromagnetic feeder ........................... Electronic balance ................................... Emulsification solutions........................... Encoders................................................. Evaporating units for cold rooms ............ Exhausters............................................... Exhibition - ADEA Awards ....................... Exhibition - Annapoorna India................. Exhibition - Engineering Expo Ahmedabad Exhibition - Engineering Expo Pune ......... Exhibition - Food & Bev Tech 2010 .......... Exhibition - Food Ingredients India 2010......... Exhibition - International Foodtec India ... Exhibition - International Packtech India/ drink technology India 2010 ................... Exhibition - Promach 2010...................... Extruded products................................... Extruder for papad machine.................... Extruder machine .................................... Factory sensor ......................................... Fastback revolution seasoning system......

First Fold Here Filtration equipment................................ Filtration systems .................................... Fish processing equipment ...................... Flattened & built-up tin cans ................... Flexible transparent PVC strip door.......... Flour milling unit .................................... Fluid mixing dispersion unit..................... Food analysing & testing machine ........... Food forming machine............................ Food process equipment ......................... Food process machinery .......................... Food processing knives............................ Food testing equipment (programmes) ... Foot sealer .............................................. Forced convection unit air cooler............. Grain handling unit................................. Gravy making machine............................ Grill magnet............................................ Grinding & dispersion system .................. Gyratory screen ....................................... Ham processing unit ............................... Hammer machine ................................... Hand sanitiser ......................................... Hand sealer............................................. Hardener ................................................ Heat resistant door .................................

HeavyFold industrial steel building ................. Second Here High pressure cleaners ............................ High pressure cleaning machine.............. High speed mixer .................................... Hopper magnet ...................................... Ice candy machine .................................. Impact pulveriser..................................... Industrial control & sensing devices......... Industrial cooling systems ....................... Industrial door ........................................ Industrial inkjet printers .......................... Industrial-type unit air cooler .................. Inkjet printer ........................................... Intelligent sensors ................................... Invertor/variable frequency drives ............ Juicer ......................................................

Knives and blades ................................... Lab spray dryer ....................................... Level controllers ...................................... Lid tagger assembly and bottoms............ Lipid food processing equipment ............ Liquid filling machine.............................. Magnetic equipment............................... Magnetic plate........................................ Magnetic traps........................................ Masala mill ............................................. Mathiya making machine........................ Measuring & monitoring relay ................ Meat ball forming machine..................... Meat processing unit .............................. Mechanical vacuum boosters .................. Metal detector ....................................... Metal separation..................................... Metering pumps ..................................... Micro drives ............................................ Milk chiller .............................................. Milk processing machine......................... Mini dal mill ........................................... Mini pulveriser ........................................ Mini pulveriser with circulating system .... Mini vacuum machine............................. Mixer cookers (cheese cookers) ............... Mixer grinder .......................................... Mixers..................................................... Mixing processing unit ............................ Mixture for papad machine..................... Moisture analyser.................................... Motion controls ...................................... Moulds ................................................... Multi chamber pulveriser......................... Multi-head combination weigher machine Multi-level car parking ............................ Noodle making machine ......................... Oil coolers............................................... Oil milling unit ........................................ Oil/coolant coolers .................................. Oil/gas fired biscuit making machine ....... Oils (exporters)........................................ On-line check weigher ............................ Online vacuum machine.......................... Packaging machinery .............................. Pallet scale .............................................. Panel air-conditioners .............................. Panel coolers........................................... Panipuri making machine ........................ Papad making machine ........................... Pasta making machine ............................ Pasteurising machine............................... Peristaltic pumps..................................... Photo electric sensors.............................. Pickling tank ........................................... Piston pumps.......................................... Plastic conveyor belt................................ Plastic pellets .......................................... Pneumatic actutators .............................. Pneumatic hammers ............................... Poker vibrators ........................................ Polycarbonate sheets............................... Polyproplene tank ................................... Pounding machine .................................. Powder disperser.....................................

Send your inquiries at: Tel: +91-22-3003 4685 Fax: +91-22-3003 4499 Email: b2b@infomedia18.in

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We will send your inquiries to the manufacturers and ask them to send you the details or contact you directly. Use this form for FREE additional Information on products published in this issue.How to use this form:

Air chiller ................................................ Air cooler................................................ Air purifier .............................................. Almond cutting machine ........................ Analytical solutions ................................. Animal feed technology .......................... AODD pumps ......................................... Automatic bag splitter ............................ Automatic scrubber driers ....................... Bag form fill and seal machines............... Bakery equipment ................................... Baking machinery.................................... Batching system...................................... Beltweigher............................................. Beverage canning machine...................... Beverage packaging machine .................. Blast chiller ............................................. Blast freezer ............................................ Blender and mixer ................................... Blowers................................................... Boiling/stirring unit ................................. Bread making machinery......................... Brewing unit ........................................... Brine chillers ........................................... Bulk container discharger ........................ Bulk milk chiller....................................... Burners for process air heating applications Cap sealing machine ............................... Carpet cleaning machines ....................... Centrifugal pumps .................................. Chapati making machine ........................ Chemical process equipment................... Chest freezer........................................... Chillers.................................................... Chocolate/cocoa making machine ........... Chorafali making machine....................... Chow making machine ........................... Circumferential piston pumps ................. Cleaning section equipment .................... Cold form C & Z purlins .......................... Cold room door ...................................... Cold room PUF panel .............................. Colour measuring instruments ................ Colour sorting systems ............................ Confectionery machines .......................... Control valve........................................... Conveyers belts ....................................... Conveyor system ..................................... Cooking mixers ....................................... Corrugated tube heat exchangers ........... Counters & power supplies ..................... Cup filler machine................................... Cutters/slicer ........................................... Dairy enzymes......................................... Dairy plant .............................................. Daliya making machine ........................... Deep freezer ........................................... Dehumidifiers.......................................... Dehydration equipment .......................... Doors...................................................... Double chamber vacuum machine .......... Drawer magnet....................................... Drives ..................................................... Acid tank ................................................

Third Fold Here

PRODUCT INQUIRY FORM

Please complete the following & get a quick effective response from suppliers: 1. Your company’s business function is ( one only) Wholesalers Manufacturer Distributor Agent Other, please specify______________ 2. Your role in your company’s buying process can best be described as: I buy I identify potential suppliers I approve purchases I negotiate contracts I select suppliers. 3. Your line of business Name: Designation: Company Name:

City:

Pin:

Tel:

Fax:

09 / 2010

Address:

Email: Pre-engineered steel building .................. Pre-fab shelter......................................... Process instruments ................................ Product handling equipment................... Programmable logic controllers ............... Programmable terminals ......................... Proximity sensors .................................... Pulveriser ................................................ Pump/valve ............................................. PVC strip door ........................................ Rare earth tubes ..................................... Refrigeration unit .................................... Residential steel house ............................ RFID ....................................................... Rice milling equipments .......................... Ripening chambers ................................. Rock n roll machine ................................ Roof vent ................................................ Roofing & cladding sheet ........................ Rotary lobe pumps.................................. Rotary rock oven ..................................... Round table carrousels............................ Safety door ............................................. Safety light curtains ................................ Scalewatcher........................................... Sealing machine...................................... Security systems ......................................

Separating magnetic & non-magnetic metals ...... Shrink wrapping machine ....................... Single disc machines ............................... Single mill pulveriser ............................... Special industrial coatings ....................... Special refrigeration equipment............... Spice mill ................................................ Stainless steel equipment and fitting ....... Steriliser .................................................. Stirrer ..................................................... Stretch wrapping machine ...................... Structural floor decking sheet ................. Sweepers ................................................ Switching relays ...................................... Tank ....................................................... Tank weighing unit ................................. Temperature loggers ............................... Tempurature controllers .......................... Thermal processes................................... Three arm bi-axial roto moulding machine Timers..................................................... Tin metal printing drying oven ................ Tin rings ................................................. Travelling ovens....................................... Tri lobe roots blowers.............................. Self adhesive tapes..................................

Turbine blowers/exhausters......................

Sensor innovation ...................................

Twin lobe roots blowers .......................... Twin mill pulveriser.................................. Twist wrapping machine ......................... Undercounter refrigeration...................... Universal mixing and seasoning machine Universal-type unit air cooler................... USS univent ............................................ Vaccum cleaners ..................................... Vacuum machine .................................... Vacuum packing machine ....................... Vegetable cutting machine...................... Ventilators .............................................. Vermicelling machine .............................. Vertical freezer-chiller .............................. Vibration motor ...................................... Vibro screens .......................................... Viscometer.............................................. Viscous paste filler machine .................... Vision sensors ......................................... Water chillers .......................................... Water cooler ........................................... Water purification system........................ Water purifier ......................................... Weigh bridge.......................................... Weigh scales ........................................... Wrapping machines ................................ X-ray inspection system ...........................

Ruby House, ‘A’ Wing, J.K. Sawant Marg, Dadar (W), Mumbai 400 028, INDIA.

INFOMEDIA 18 LIMITED Special Projects POSTAGE WILL BE PAID BY ADDRESSEE

BR Permit No. 555 Bhavani Shankar Post Office, Mumbai 400 028.

Business Reply Inland

NO POSTAGE STAMP NECESSARY IF POSTED IN INDIA

ADVERTISER INQUIRY FORM

se this form for FREE additional Information on advertisements published in this issue. We will send your inquiries to the advertisers and ask them to send you the details or contact you directly.

How to use this form:

Please tick against the box of advertiser(s) you are interested in: Mention specific product/ service you need, against the advertiserâ&#x20AC;&#x2122;s name Complete all the details on this form. Tear the form & mail it to us. (It is a prepaid mail)

Tel.: +91-22-3003 4640

Fax.: +91-22-3003 4499 Email: b2b@infomedia18.in

A G Engineers .............................................................................

Jas Enterprises.............................................................................

A M P Rose .................................................................................

Jay Instruments & Systems Pvt Ltd...............................................

AB Diachem Systems Pvt Ltd .......................................................

Jaykrishna Magnetics Pvt Ltd .......................................................

Acme Air Equipment Co Pvt Ltd ..................................................

Kinn Shang Hoo Iron Works........................................................

ADEA..........................................................................................

Koelnmesse Ya Trade Fair Pvt Ltd. ................................................

Arctic India Sales.........................................................................

Markem-Image India Private Limited ...........................................

Arvind Anticor Ltd.......................................................................

Millipore India Pvt Ltd .................................................................

Bangalore International Exhibition...............................................

Monarch Appliances ...................................................................

Banner Engineering India Pvt Ltd.................................................

Novozymes South Asia Pvt Ltd ....................................................

Besto Oven Industries..................................................................

Omron Automation Pvt Ltd .........................................................

Bonfiglioli Transmissions (Pvt) Ltd ................................................

Pankaj Exports.............................................................................

Bosch Limited .............................................................................

Plast World .................................................................................

Buhler (India) Pvt Ltd...................................................................

Procon Technologies Pvt Ltd ........................................................

CII ...........................................................................................

Ravel Hiteks Pvt Ltd .....................................................................

CNZH Technology Share Co., Ltd. ................................................

S+S Separation And Sorting Technology Gmbh ..........................

Danfoss Indus Pvt Ltd..................................................................

Shah Brothers .............................................................................

Diversey India Pvt Ltd ..................................................................

Siemens Ltd ................................................................................

Eclipse Combustion Pvt Ltd .........................................................

Smart Logistics............................................................................

Engineering Expo - Tab ...............................................................

Sreelakshmi Traders.....................................................................

Eureka Forbes Limited .................................................................

SSP Pvt Limited ...........................................................................

FICCI ...........................................................................................

Sympak Asia Pacific Pte Ltd .........................................................

Freeze Tech Equipments Pvt Ltd...................................................

Technical Trading & Services ........................................................

FX Multitech Pvt Ltd....................................................................

Tricon..........................................................................................

Guan Yu Machinery Factory Co., Ltd............................................

UBM India Private Limited ...........................................................

Heat And Control........................................................................

Ultraplast Chainbelts Pvt Ltd........................................................

Hindustan Tin Work Ltd ..............................................................

United Steel & Structurals Pvt Ltd................................................

HRS Process Systems Ltd .............................................................

VDMA.........................................................................................

IC Ice Make Refrigeration Pvt Ltd.................................................

Wam India Pvt Ltd ......................................................................

IDEX India Pvt Ltd .......................................................................

Werner Finley Pvt Ltd ..................................................................

Indian Foods P Ltd ......................................................................

Wraptech Machines Pvt Ltd.........................................................

First Fold Here

Second Fold Here

SOURCE PROCESS PLANT MACHINERY & EQUIPMENT @ www.engg-expo.com

Third Fold Here

GLUE

City:

Pin:

Tel:

Fax:

09 / 2010

Address:

Email:

Ruby House, ‘A’ Wing, J.K. Sawant Marg, Dadar (W), Mumbai 400 028, INDIA.

INFOMEDIA 18 LIMITED Special Projects POSTAGE WILL BE PAID BY ADDRESSEE

BR Permit No. 555 Bhavani Shankar Post Office, Mumbai 400 028.

Business Reply Inland

NO POSTAGE STAMP NECESSARY IF POSTED IN INDIA

PRODUCT INDEX Product

Pg No

Product

Pg No

Product

Pg No

Acid tank ..................................... 118

Colour sorting systems........................11

Flexible transparent PVC strip door ...119

Aging vat..........................................113

Confectionery machines ......................26

Flour milling unit ................................11

Air chiller ..........................................113

Control valve.....................................118

Fluid mixing dispersion unit ................47

Air cooler............................................13

Conveyers belts .......................... 41, 113

Food analysing & testing machine ......BC

Air purifier ..........................................53

Conveyor system .................................33

Food forming machine .....................118

Almond cutting machine ..................115

Cooking mixers .................................111

Food process equipment...................119

Analytical solutions ...............................7

Corrugated tube heat exchangers ......BIC

Food process machinery ...................116

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

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

Food processing knives .....................118

AODD pumps .....................................47

Cup filler machine...............................67

Food testing equipment (programmes)......69

Automatic bag splitter ......................111

Cutters/slicer .....................................118

Foot sealer........................................115

Automatic scrubber driers...................63

Dairy enzymes ............................... 37

Forced convection unit air cooler ........13

Bag form fill and seal machines .. 19

Dairy plant..........................................45

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

Bakery equipment ...............................57

Daliya making machine.....................115

Gravy making machine .....................115

Baking machinery .............................112

Deep freezer .....................................113

Grill magnet .....................................116

Batching system..................................59

Dehumidifiers....................................117

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

Beltweigher.......................................116

Dehydration equipment ....................118

Gyratory screen.................................116

Beverage canning machine .................17

Doors................................................119

Ham processing unit................... 118

Beverage packaging machine..............17

Double chamber vacuum machine....115

Hammer machine .............................115

Blast chiller .......................................113

Drawer magnet.................................116

Hand sanitiser...................................113

Blast freezer......................................113

Drives ................................................ FIC

Hand sealer ......................................115

Blender and mixer.............................118

Dry cum wet grinder ........................115

Hardener ..........................................113

Blowers.............................................114

Dust control door .............................119

Heat resistant door ...........................119

Boiling/stirring unit ...........................118

Electromagnetic feeder............... 116

Heavy industrial steel building ..............8

Bread making machinery ..................112

Electronic balance...............................59

High pressure cleaners ........................63

Brewing unit.......................................11

Emulsification solutions.......................47

High pressure cleaning machine .......117

Brine chillers .....................................111

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

High speed mixer................................71

Bulk container discharger..................111

Evaporating units for cold rooms........13

Hopper magnet ................................116

Bulk milk chiller ................................113

Exhausters.........................................114

Ice candy machine ...................... 113

Burners for process air heating

Exhibition - ADEA Awards ................122

Impact pulveriser ..............................115

applications ......................................121

Industrial control & sensing devices ......5

Cap sealing machine................... 115

Exhibition - Annapoorna India ............79 Exhibition - Engineering Expo Ahmedabad ........ 49

Carpet cleaning machines ...................63

Exhibition - Engineering Expo Pune ....31

Industrial door ..................................119

Centrifugal pumps ..............................47

Exhibition - Food & Bev Tech 2010.....75

Industrial inkjet printers ......................59

Chapati making machine ..................115

Exhibition - Food Ingredients India 2010 ...87

Industrial-type unit air cooler ..............13

Chemical process equipment ............118

Exhibition - International Foodtec India ...109

Inkjet printer....................................COC

Chest freezer.....................................113

Exhibition - International Packtech India/

Intelligent sensors .................................7

Chillers................................................36

drink technology India 2010...............39

Invertor/variable frequency drives ..........5

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

Exhibition - Promach 2010 .................73

Juicer ........................................... 115

Chorafali making machine ................115

Extruded products ..............................11

Knives and blades ....................... 110

Chow making machine .....................115

Extruder for papad machine .............115

Lab spray dryer ............................. 59

Circumferential piston pumps .............47

Extruder machine................................71

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

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

Factory sensor ................................. 7

Lid tagger assembly and bottoms .......43

Cold form C & Z purlins........................8

Fastback revolution seasoning system .33

Lipid food processing equipment........BC

Cold room ........................................114

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

Liquid filling machine................... 59, 67

Cold room door................................113

Filtration systems ................................BC

Magnetic equipment .................. 116

Cold room PUF panel........................113

Fish processing equipment................118

Magnetic plate .................................116

Colour measuring instruments ............59

Flattened & built-up tin cans ..............43

Magnetic traps .................................116

Industrial cooling systems .................111

COMPLETE ENGINEERING UNDER ONE ROOF @

www.engg-expo.com

September 2010 | Modern Food Processing

129

PRODUCT INDEX Product

Pg No

Product

Pg No

Product

Pg No

Masala mill .......................................115

Plastic conveyor belt ...........................71

Steriliser ..............................................17

Mathiya making machine..................115

Plastic pellets ......................................11

Stirrer ...............................................115

Measuring & monitoring relay .............5

Pneumatic actutators ........................111

Stretch wrapping machine ................115

Meat ball forming machine ..............118

Pneumatic hammers .........................111

Structural floor decking sheet ...............8

Meat processing unit ........................118

Poker vibrators..................................111

Sweepers ............................................63

Mechanical vacuum boosters ............114

Polycarbonate sheets ............................8

Switching relays ....................................5

Metal detector ...................................59

Polyproplene tank .............................118

Tank ............................................. 118

Metal separation.................................65

Pounding machine............................115

Tank weighing unit.............................59

Metering pumps .................................47

Powder disperser ..............................110

Temperature loggers.........................110

Micro drives........................................15

Pre-engineered steel building ................8

Tempurature controllers........................5

Milk chiller ........................................113

Pre-fab shelter ......................................8

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

Milk processing machine.....................17

Process instruments ..............................7

Three arm bi-axial roto moulding machine ........ 71

Mini dal mill .....................................115

Product handling equipment ..............33

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

Mini pulveriser with circulating system.....115

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

Tin metal printing drying oven..........112

Mini vacuum machine ......................115

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

Tin rings .............................................43

Mixer cookers (cheese cookers) .........117

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

Travelling ovens ................................112

Mixer grinder ....................................115

Pulveriser ............................................71

Tri lobe roots blowers.......................114

Mixers...............................................111

Pump/valve .........................................17

Turbine blowers/exhausters ...............120

Mixing processing unit......................118

PVC strip door ......................... 118, 119

Twin lobe roots blowers ...................114

Mixture for papad machine ..............115

Rare earth tubes ......................... 116

Twin mill pulveriser .............................71

Moisture analyser................................59

Refrigeration unit..............................113

Twist wrapping machine...................121

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

Residential steel house..........................8

Undercounter refrigeration ........ 113

Moulds ...............................................71

RFID...................................................5,7

Multi chamber pulveriser ..................115

Rice milling equipments......................11

Multi-head combination weigher machine......... 67

Ripening chambers ...........................115

Multi-level car parking ..........................8

Rock n roll machine ............................71

Noodle making machine............. 115

Roof vent..............................................8

Oil coolers ..................................... 36

Roofing & cladding sheet .....................8

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

Rotary lobe pumps .............................47

Oil/coolant coolers ............................111

Rotary rock oven...............................112

Oil/gas fired biscuit making machine 112

Round table carrousels .......................71

Oils (exporters)..................................119

Safety door ................................. 119

On-line check weigher ........................59

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

Online vacuum machine ...................115

Scalewatcher.......................................61

Packaging machinery .......... 115, 116

Sealing machine ...............................115

Pallet scale..........................................59

Security systems..................................53

Panel air-conditioners .......................111

Self adhesive tapes ...............................6

Panel coolers ......................................36 Panipuri making machine..................115

Sensor innovation ...............................55 Separating magnetic & non-magnetic metals .... 65

Papad making machine.....................115

Shrink wrapping machine .................115

Water cooler.....................................113

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

Single disc machines...........................63

Water purification system ... 23,110, 119

Pasteurising machine ..........................17

Single mill pulveriser ...........................71

Water purifier .....................................53

Peristaltic pumps...............................121

Special industrial coatings.................117

Weigh bridge......................................59

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

Special refrigeration equipment ........111

Weigh scales.......................................59

Pickling tank .....................................118

Spice mill ..........................................115

Wrapping machines..........................116

Piston pumps.....................................BIC

Stainless steel equipment and fitting ..17

X-ray inspection system................ 59

Universal mixing and seasoning machine.....118 Universal-type unit air cooler ..............13 USS univent ..........................................8 Vaccum cleaners ..................... 53, 63 Vacuum machine..............................115 Vacuum packing machine.................112 Vegetable cutting machine ...............115 Ventilators ............................................6 Vermicelling machine........................115 Vertical freezer-chiller .......................113 Vibration motor ................................116 Vibro screens ......................................71 Viscometer..........................................59 Viscous paste filler machine ................67 Vision sensors .......................................5 Water chillers ...................... 111, 113

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

SOURCE PACKAGING & AXILLARIES PRODUCTS@ www.engg-expo.com

130 Modern Food Processing | September

2010

ADVERTISERS’ LIST

Advertisers’ Name & Contact Details

Pg No

A G Engineers

Advertisers’ Name & Contact Details

Pg No

Advertisers’ Name & Contact Details

Bonfiglioli Transmissions (Pvt) Ltd FIC

FICCI

T: +91-120-2866144

T: +91-44-24781035

T: +91-11-23316551

E: info@agengineers.net

E: sales@bonfiglioliin.com

E: chandra.shekhar@ficci.com

W: www.agengineers.net

W: www.bonfiglioliindia.com

W: www.worldoffoodindia.com

A M P Rose

Bosch Limited

Freeze Tech Equipments Pvt Ltd

T: +91-80-28473611

T: +91-832-669-2004

T: +91-44-42152387

E: sales@amprose.co.in

E: Amol.Matkar@in.bosch.com

E: info@freezetechequip.com

W: www.amprose.co.in

W: www.boschpackaging.com

W: www.freezetechequip.com

AB Diachem Systems Pvt Ltd

Buhler (India) Pvt Ltd

FX Multitech Pvt Ltd

T: +91-80-22890000

T: +91-79-27910993

E: sales@scalewatcher.in

E: sujit.pande@buhlergroup.com

E: fxmultitech@gmail.com

W: www.scalewatcher.in

W: www.buhlergroup.com

W: www.frascold.it

114

T: +91-79-25831985

CII

W: www.gy-1000.com.tw

W: www.foodbevtech.com

ADEA Awards

122

T: +91-22-30034650

CNZH Technology Share Co., Ltd.17 T: +86-577-2886-7008

E: prachi.mutha@infomedia18.in 117

T: +91-11-23906777

118

T: +91-79-25894692 E: arvindanticor@hotmail.com

T: +91-22-66444222

W: www.pvcstripdoor.co.in

W: www.diversey.com

Bangalore International Exhibition

Eclipse Combustion Pvt Ltd

T: +91-11-49998888

HRS Process Systems Ltd 63

E: cthe@hrsasia.co.in W: www.hrsasia.co.in 121

IC Ice Make Refrigeration Pvt Ltd

T: +91-124-4014060

T: +91-2764-291022

E: amit.mehta@cii.in

E: vkulkarni@eclipsenet.com

E: icmake1@gmail.com

W: www.promach.co.in

W: www.eclipseindia.com

W: www.icemakeindia.com

Engineering Expo

31,49

IDEX India Pvt Ltd

T: +91-9920401226

T: +91-22-66755966

E: india@bannerengineering.com

E: engexpo@infomedia18.in

E: info.fmt@idexcorp.com

W: www.bannerengineering.co.in

W: www.engg-expo.com

W: www.idexfmt-asia.com

112

Eureka Forbes Limited

Indian Foods P Ltd

T: +91-22-25511718

T: +91-80-30251500

T: +91-452-2465400

E: adil@ovenindia.com

E: fandb@eurekaforbes.com

E: info@indianfoods.in

W: www.ovenindia.com

W: www.eurekaforbes.com

W: www.indianfoods.in

FINALIZE SUPPLIERS @

113

T: +91-20-66405624

Besto Oven Industries

BIC

T: +91-20-25663581

T: +91-20-32347612

Banner Engineering India Pvt Ltd

W: www.hindustantin.biz

W: www.danfoss.com Diversey India Pvt Ltd

Hindustan Tin Work Ltd E: sales@hindustantin.co.in

E: danfoss.chennai@danfoss.com

W: www.bryair.com Arvind Anticor Ltd

Danfoss Indus Pvt Ltd T: +91-44-66501555

E: bryairmarketing@pahwa.com

T: +91-44-42103950 W: www.heatandcontrol.com

W: www.ty-cnzh.com

Arctic India Sales

Heat And Control E: info@heatandcontrol.com

E: info@chinatianyu.net

W: www.adea.in

E: guanyeu@ms39.hinet.net

E: anil.padwai@cii.in

W: www.airequipments.com

Guan Yu Machinery Factory Co., Ltd. T: +886-4-896-5198

T: +91-22-24931790

E: info@airequipments.com

T: +91-11-25155456

Acme Air Equipment Co Pvt Ltd

Pg No

www.engg-expo.com

September 2010 | Modern Food Processing

131

ADVERTISERS’ LIST

Advertisers’ Name & Contact Details

Jas Enterprises

Pg No

115

Advertisers’ Name & Contact Details

Pankaj Exports

Pg No

119

Advertisers’ Name & Contact Details

Sympak Asia Pacific Pte Ltd

Pg No

116

T: +91-79-22743454

T: +91-22-27830444

T: +91-65-64557670

E: info@jasenterprise.com

E: pankajexports1981@gmail.com

E: sympak-asiapacific@sympak.com

Plast World

W: www.sympak-asiapacific.com

W: www.jasenterprise.com

119

Jay Instruments & Systems Pvt Ltd 59

T: +91-9376128372

Technical Trading & Services

T: +91-836-2352678

E: plastworld1@rediffmail.com

T: +91-80-25805767

E: ashok.kamat@jayinst.com

W: www.stripdoor.co.in

E: sales@tts.net.in

W: www.jayinst.com Jaykrishna Magnetics Pvt Ltd

Procon Technologies Pvt Ltd 116

T: +91-79-22970452 E: info@jkmagnetics.com W: www.jkmagnetics.com Kinn Shang Hoo Iron Works

118

W: www.washboys.com

T: +91-79-25830112

Tricon

E: plastics@prasadgroup.com

T: +91-20-25652205

W: www.prasadgroup.com

E: triconfood@gmail.com

Ravel Hiteks Pvt Ltd

121

119

UBM India Private Limited

T: +91-44-24961004

T: +91-22-66122612

E: sales@ravelhiteks.com

E: bipin.sinha@ubm.com

W: www.ksh.com.tw

W: www.ravelhiteks.com

Ultraplast Chainbelts Pvt Ltd

Koelnmesse Ya Trade Fair Pvt Ltd. 109

S+S Separation And Sorting

T: +91-129-4113187

T: +91-40-65707722

Technology Gmbh

E: m.pathan@koelnmesse-india.com

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