Food and Beverage Sector in India Monthly Update December 2012
Top Story Cargill acquires Wipro’s Sunflower Vanaspati brand The iconic Sunflower Vanaspati brand of Wipro has been acquired by Cargill India, the US‐based food producer and marketer. Sunflower Vanaspati’s share out of the total revenue earned by Wipro Consumer Care and Lighting was 1% only. Moreover, the company felt that it was not fitting into any of its pre‐identified segments such as personal care and lightning. Sunflower Vanaspati is made out of edible vegetable oil and soya oil. Besides other Indian states, it is mostly marketed in Maharashtra and MP. Although the deal value of the brand hasn’t been disclosed yet, but, as per some trade analysts it is expected to be somewhere between INR 300‐400 mn. Cargill already has vanaspati oil brands such as Rath, Gemini and Nature Fresh Purita brands under its product portfolio. With this new addition, it is expected to become the largest vanaspati player in the market. In the edible oil industry, vanaspati is being seen as a stagnant segment as consumers are becoming health conscious and are shifting towards healthy oil brands. Still in comparison to groundnut, cotton and sunflower edible oil vanaspati oil is consumed more. With this acquisition, Cargill is strengthening its existing portfolio of leading edible oil and vanaspati brands and also expanding its reach in India's palm oil and its derivatives. News Update
General
Court declares Parle Mango Bite safe for consumption Finally, Parle’s Kaccha Mango Bite candy has been declared safe for consumption by the Bombay High Court. Earlier, in October, the Food and Drug Administration (FDA) had raided the Parle Biscuit’s manufacturing unit at Nashik and Khopoli and seized stocks of Kaccha Mango Bite candy across Maharashtra by considering them unsafe for consumption due to high lactic acid content. Parle then approached the High Court and ultimately, the court gave verdict in favour of Parle by declaring usage of lactic acid absolutely safe for consumption in hard boiled candies. The Court has given direction to the Food and Drug Administration (FDA) to release 39 batches of the company's `Kaccha Mango Bite' candy, which were seized for containing lactic acid. Food and Beverage – Monthly Update
Dabur launches new variants of Real Activ juices Leading packaged fruit juice maker Dabur has come up with new variants of its Real Active fruit juice range. The new product additions have been done under the sub range Real Activ Fiber+. The new juices will be available in the flavours of ‘Banana Strawberry’ and ‘Green Apple Punch’. With this new launch, the total variants of Real Activ range extended to 11 variants. The new fruit juices are prepared from 100% hand‐picked fruits and are enriched with fibres. These new juices are the first in India to contain soluble dietary fibres. Moreover, it doesn’t contain added sugar and preservative which makes it a complete healthy option for consumption. Flavourd milk launched by Vadilal Vadilal, the well known player of the Indian dairy and ice cream industry has launched flavoured milk ‘Power Sip’ under its ‘Quick Treat umbrella brand’. It is their first major launch in the non ice cream dairy category. With this new launch, the company aims at fulfilling its long term strategy of offering wide range of frozen food products to its consumers. The flavoured milks will be manufactured at the company’s Mundra plant. At present, 20,000 bottles per day will be produced. As of now, the company has launched the product in Ahmedabad only and after covering entire Gujarat, it will introduce the product in Maharashtra, Madhya Pradesh and Rajasthan. In addition to the new launches, the company has also decided to set up a new manufacturing plant in the coming one or two years for supporting the production requirements, which is going to rise with more new product launches. Masala Chaas launched by Britannia The well known food brand, Britannia Industries Ltd. has come up with a new product ‘Masala Chaas’. It’s a milk‐based beverage spiced with jeera, curry leaves and ginger. In India, Chaas is an integral part of any cuisine. Moreover, any thing available in ready to drink format is highly convenient for consumption and is gaining popularity among the consumers as well. The product has been packed in 150ml bottles and price has been fixed at INR 15 per bottle. It comes with a shelf life of four months before opening. The product is available at all leading modern trade outlets across major Indian cities. Ruchi launches zerocholesterol table spread Ruchi Soya Industries Ltd. has recently come up with another healthy product ‘Nutrela Premium Table Spread’. The newly launched product is a zero‐cholesterol, low‐calorie product which is fortified with Vitamins A, D and E and is devoid of trans‐fats. The product being healthy in nature can be used in place of butter.
Food and Beverage – Monthly Update
The product will be available in block packs of 100 gm and 500 gm at a price of INR 27 and INR 130 respectively. Moreover, to make its easy availability to the consumers, it will be available at all the groceries, general stores, modern retail chains, supermarkets and standalone self‐service stores.
News Update Regulatory
Licensing melas to be organized by FSSAI Recently, the Food Safety and Standards Authority of India (FSSAI) announced that they will be conducting licensing melas and workshops in various Indian states for educating food business operators (FBOs). The programmes will be conducted in the months of December 2012 and January 2013. The last date for obtaining licensing and registration is 4th February 2013. In addition to providing knowledge regarding food safety through these events, the FSSAI wants to enlighten the food business operators regarding the fact that they can easily obtain their licenses. Moreover, the FBOs will get a chance to understand the detailed procedure of licensing including the hidden things of the licensing and registration process The participating Indian states include Rajasthan, Gujarat, Maharashtra, West Bengal, Orissa, Jharkhand, Uttar Pradesh and Tamil Nadu. Over 5,000 FBOs are expected to take part in this event.
News Update Expansion Plans
Temasek invests in Godrej Agrovet Singapore‐based investment company, Temasek has infused an investment of INR 5720 mn in Godrej Agrovet Ltd. As per the agreement, after this investment Temasek will hold 19.99% stake in Godrej Agrovet Ltd. The investment will be a combination of primary and secondary investment. A part of this investment will be used by the company for acquiring new companies and strengthening research and development. In addition to this, it will be also used for capacity expansion of the animal feed sector. Food and Beverage – Monthly Update
PizzaExpress sets its foot in India PizzaExpress, the UK‐based casual dining chain has stepped into the Indian market by launching its first store in Mumbai. PizzaExpress has entered India, via a joint venture with the Gourment Investments, which is promoted by the Bharti Family Office. The brand is globally known for its ability to provide foods with authentic Italian taste. In India, in addition to maintaining their authenticity, they are also modifying their menus in order to match with the Indian taste and preferences. They have excluded beef offerings from their menu and introduced more vegetarian and spicy varieties to attract the Indian consumers. Moreover, the outlets will have a live kitchen where customers can watch the making of a pizza live, interact with their chefs and spend hours over slices of pizza. Cargill to invest in India’s food processing sector U.S. agribusiness giant, Cargill is going to invest INR 4.9 bn in India’s growing food processing sector. The company has planned of setting up a corn milling unit with a processing capacity of 800 to 1,000 tonnes per day by 2014. The plant will focus on catering to the growing demand of modified starch in the processed food segment. For this, the company has already purchased land at Davangere in Karnataka which is considered as the top corn‐producing state in India. In addition to this, Cargill also intends to augment its existing cooking oil refining capacities in its three plants. For this, the company has planned of investing an amount of around INR 1 bn from its total budget of INR 4.9 bn in the coming two years. Parag Milk invests to double its capacity India's one of the largest private dairy company, Parag Milk Foods has decided to invest an amount of INR 4500 mn for doubling its present production capacity with the support from IDFC Private Equity Fund. As of now, the company has received private equity investments worth INR 1550 mn from IDFC Private Equity. The company has also planned of raising funds through an initial public offering (IPO) to part fund the expansion over the next two years. As a part of this expansion plan, the company will set up two new facilities, one each in East and Northern regions of the country. The company will also invest an amount of INR 800 mn for expanding the production capacity of its existing AP facility at Palamner in Chittoor district from 0.6 mn litres to 1 mn litres per day. All these expansions are being planned for achieving an ambitious sales target worth INR 100 bn by the year 2020.
Food and Beverage – Monthly Update
Industry Expert Speak Cargill invests in India – Siraj Chaudhry, Chairman, Cargill India “Our plant will cater to the growing demand for modified starch in the processed food segment” Packaged sweets launched by Mother Dairy – Anirudh Pandharkar, Category Head, Real Activ, Dabur India Ltd “Real Activ Fiber+ Banana Strawberry and Real Activ Fiber+ Green Apple Punch are the latest variants brought to you by the Real family; and possibly amongst the most exotic” Cargill acquires Sunflower vanaspati brand – Siraj Chaudhry, Chairman, Cargill India “The brand is iconic and is a trusted name. It has been positioned as next to desi ghee in the household segment across Maharashtra”
Transactions (OctDec 2012)
Date
Buyer
Target
Size (INR mn)
% stake
Deal Status
Type of Transaction
18th Dec 2012
Temasek
Godrej Agrovet Ltd
5720
20%
Completed
PE
11th Dec 2012
Cargill India
Wipro Ltd. (Sunflower Vanaspati brand)
300‐400
100%
Completed
M&A
5th Dec 2012
Premji Invest
Heritage Foods
N.A.
N.A.
Completed
PE
3rd Dec 2012
Helion Ventures & Footprint Ventures
Spring Leaf Retail Pvt. Ltd.
325
N.A.
Completed
PE
19th Nov 2012
Jagatjit Industries Ltd.
Scotland's George Sinclair & Sons Ltd.
N.A.
N.A.
Completed
M&A
16th Nov 2012
Diageo PLC
India’s United Spirits Ltd.
109.8
53.4%
Pending
PE
6th Nov 2012
N.A.
Paradise Food Court
500
N.A.
Pending
PE
2nd Nov 2012
N.A.
The Beer Café
274.6
N.A.
Pending
PE
Food and Beverage – Monthly Update
Date
Buyer
Target
Size (INR mn)
% stake
Deal Status
Type of Transaction
31st Oct 2012
Heritage Foods Ltd.
Kotak India Focus Fund
250
5.64%
Completed
PE
29th Oct 2012
Titbit.com
Foodkamood.com
N.A.
100%
Completed
M&A
22nd Oct 2012
Aditya Birla PE
Olive Bar & Kitchen Pvt. Ltd.
538.8
N.A.
Completed
PE
8th Oct 2012
Standard Chartered PE
Varun Beverages (International) Limited
1650
N.A.
Completed
PE
Annual Financial Results – Revenue (INR mn) Companies
FY ‘09
FY ‘10
FY ‘11
FY ‘12
Anik Industries Ltd.
10,209.80
12,232.80
12,788.30
16,075.70
Balrampur Chini Mills Ltd.*
17,551.00
N.A.
19,843.80
23,095.50
Bannari Amman Sugars Ltd.
6,963.60
8,783.20
8,255.40
11,795.10
Britannia Industries Ltd.
34,212.30
37,748.60
45,931.10
54,635.30
Dabur India Ltd.
28,122.40
33,958.00
41,045.10
53,054.20
Dhampur Sugar Mills Ltd*
9,473.60
15,015.27
17,794.52
15,375.20
Godrej Industries Ltd.
36,121.28
37,080.50
44,989.50
57,100.30
Hatsun Agro Products Ltd.
10,135.69
11,415.58
13,557.32
16,035.37
Heritage Foods (India) Ltd.
7,967.54
9,003.85
10,960.86
13,768.51
Hindustan Unilever Ltd.
166,639.84
180,319.30
200,225.50
234,363.30
IFB Agro Industries Ltd.
2,831.48
2,906.74
4,499.83
5,846.29
165,561.40
191,358.70
225,747.00
265,517.90
ITC Ltd.
Food and Beverage – Monthly Update
Kwality Dairy India Ltd.
5,828.03
10,541.25
16,080.36
23,894.81
Marico Ltd.
23,884.20
26,607.60
31,349.90
40,082.80
Radico Khaitan Ltd.
6,960.29
8,355.51
9,964.58
10,977.69
Ruchi Soya Industries Ltd.
127,423.20
143,926.26
182,311.76
302,464.37
Shree Renuka Sugars Ltd.*
28,159.89
77,002.51
86,623.00
88,876.03
Tata Coffee Ltd.
11,184.31
12,896.27
13,013.61
15,489.97
N.A.
N.A.
73,761.83
91,865.00
5,692.64
7,054.71
8,520.08
9,522.70
United Spirits Ltd. Venky's (India) Ltd.
* Change in Financial Year Ending
Annual Financial Results – Income (INR mn) Companies
FY ‘09
FY ‘10
FY ‘11
FY ‘12
Anik Industries Ltd.
‐171.00
‐70.20
‐89.80
N.A.
Balrampur Chini Mills Ltd.*
‐45.00
64.60
252.37
N.A.
Bannari Amman Sugars Ltd.
‐279.68
‐141.03
‐118.47
‐16.38
Britannia Industries Ltd.
‐357.20
55.14
11.05
92.00
Dabur India Ltd.
20,036.08
21,566.30
22,960.50
27,906.60
Dhampur Sugar Mills Ltd*
1,887.20
2,316.70
2,864.40
3,171.10
118.68
27.89
187.46
266.02
Hatsun Agro Products Ltd.
1,653.90
2,130.70
‐2,943.90
N.A.
Heritage Foods (India) Ltd.
‐260.00
‐17.80
‐410.70
N.A.
Godrej Industries Ltd.
Food and Beverage – Monthly Update
Hindustan Unilever Ltd.
3,905.00
5,010.80
5,685.70
6,448.90
IFB Agro Industries Ltd.
954.86
1,749.00
2,251.66
1,194.24
ITC Ltd.
169.87
280.02
259.25
365.17
33,245.90
41,681.80
50,179.30
62,581.40
Marico Ltd.
130.53
44.25
178.24
265.47
Radico Khaitan Ltd.
65.36
415.40
728.01
636.60
Ruchi Soya Industries Ltd.
1,514.85
1,031.80
1,343.50
1,995.50
Shree Renuka Sugars Ltd.*
129.31
289.19
399.32
408.92
Tata Coffee Ltd.
93.84
179.47
459.43
911.52
United Spirits Ltd.
250.77
‐90.60
‐131.60
‐336.40
Venky's (India) Ltd.
256.01
459.98
‐335.70
‐1.40
Kwality Dairy India Ltd.
* Change in Financial Year Ending
Quarterly Financial Results – Revenue (INR mn) Companies
OctDec 2011
JanMar 2012
AprJun 2012
JulSep 2012
Anik Industries Ltd.
3472.852
6038.9
3174.9
N.A
Balrampur Chini Mills Ltd.
6,637.4
N.A.
N.A.
N.A
Bannari Amman Sugars Ltd.
3,467.2
3,065.1
3,625.3
2,980.3
Britannia Industries Ltd.
12,491.0
N.A.
N.A.
N.A
Dabur India Ltd.
14,526.8
13,858.3
14,620.0
15,226.0
Dhampur Sugar Mills Ltd
4,578.3
4,387.8
3,496.8
3,351.4
Food and Beverage – Monthly Update
Godrej Industries Ltd.
14,470.8
15,563.4
17,889.3
19,461.2
Hatsun Agro Products Ltd.
N.A.
4,329.9
4,897.1
5,284.0
Heritage Foods (India) Ltd.
3,545.1
3,595.2
4,080.3
3,975.9
Hindustan Unilever Ltd.
N.A.
N.A.
N.A.
N.A
IFB Agro Industries Ltd.
1209.68
1503.22
1262.8
1,429.3
ITC Ltd.
62,478.4
N.A.
N.A.
N.A
6414.1
7797.1
8,152.1
8,893.1
Marico Ltd.
10,578.2
9,273.9
12,672.1
11,558.9
Radico Khaitan Ltd.
3,094.9
2,731.5
3,038.3
2,881.0
Ruchi Soya Industries Ltd.
70,343.1
N.A.
N.A.
N.A
Shree Renuka Sugars Ltd.
20,458.0
16,610.0
N.A.
N.A
Tata Coffee Ltd.
4,128.3
3,943.5
4,077.4
4,705.3
United Spirits Ltd.
23,981.0
22,709.0
24,343.0
28,629.0
Venky's (India) Ltd.
2,502.8
2,674.9
3,147.8
3,348.4
Kwality Dairy India Ltd.
Quarterly Financial Results – Income (INR mn) OctDec 2011
JanMar 2012
AprJun 2012
JulSep 2012
8.6
88
20.7
N.A.
Balrampur Chini Mills Ltd.
‐640.1
N.A.
N.A.
N.A.
Bannari Amman Sugars Ltd.
201.6
643.0
282.0
501.7
Companies Anik Industries Ltd.
Food and Beverage – Monthly Update
Britannia Industries Ltd.
540.7
N.A.
N.A.
N.A.
1,728.2
1,705.1
1,494.0
2,023.7
Dhampur Sugar Mills Ltd
22.5
223.2
64.1
108.0
Godrej Industries Ltd.
847.3
427.2
414.5
766.2
Hatsun Agro Products Ltd.
N.A.
28.2
139.0
96.6
Heritage Foods (India) Ltd.
42.4
29.4
84.5
144.8
Hindustan Unilever Ltd.
N.A.
N.A.
N.A.
N.A.
IFB Agro Industries Ltd.
82.35
2.71
54.4
97.3
17,009.8
N.A.
N.A.
N.A.
Kwality Dairy India Ltd.
223.2
387.9
290
248.2
Marico Ltd.
841.2
697.0
1,238.4
858.7
Radico Khaitan Ltd.
236.6
44.7
211.2
220.6
Ruchi Soya Industries Ltd.
240.5
N.A.
N.A.
N.A.
Shree Renuka Sugars Ltd.
3,439.0
‐719.0
N.A.
N.A.
Tata Coffee Ltd.
215.1
288.3
281.8
368.5
United Spirits Ltd.
946.0
26.3
‐394.0
2,050.0
Venky's (India) Ltd.
29.3
181.6
201.3
23.1
Dabur India Ltd.
ITC Ltd.
Food and Beverage – Monthly Update
Events Calendar International Horti Exp Date: 11th – 13rd Jan 2012 Venue: NSIC Exhibition Complex, New Delhi, India Organizers: Media Today Pvt Ltd. Phone number: +91‐11‐26682045/26681671
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Food and Beverage – Monthly Update