Food and Beverage Sector in India Monthly Update November 2012
Top Story Ban on edible oil export extended The Commerce and Industry Ministry has extended the ban on edible oil export untill any further orders. But, foreign shipments of edible oil in branded consumer packs with a ceiling of 20,000 tonnes have been exempted from this ban for one year till September 2013. This prohibition was first declared for a period of one year with effect from 17th March 2008, which was extended from time to time and was presently valid up to 30th September 2012. The decision has been taken keeping in view the current deficit of edible oil in the country. In India, domestic production of edible oil stands at 7 mn tonnes, against the annual demand of 17‐18 mn tonnes, resulting in huge deficit which is mostlty met via imports. During 2010‐11, the total edible oil imported was around 9.78 mn tonnes. In India, 50% of edible oil demand is met through imports and a very small quantity of groundnut, sunflower and rapeseed oils are exported. So, this ban on export of edible oils won’t solve the problems of deficient domestic supply completely. Different set of strategies are required for overcoming such a crisis situation. News Update
General
Mango lassi to be launched by DKMUL Dakshina Kannada Cooperative Milk Producers Union Ltd. (DKMUL) has taken an initiative to launch mango lassi in the state of Karnataka. DKMUL is among one of the 13 milk unions of the state and with this new launch, they will become the first dairy union, to introduce mango lassi in Karnataka. The mango lassis will be sold in 200 ml sachets under the brand name ‘Nandini’ and will be available at a price of INR 12 per pouch. The product will be manufactured from original mango pulp and no extra sugar will be added as it will be already used as a preservative for the pulp. In addition to this, the union is going to set up walk‐in deep freezer that will allow DKMUL to store up to 10,000 litres of ice‐cream, butter and milk products on its premises at Kulshekar. Moreover, installation of two 60,000 litre capacity milk silos and 10,000 litre capacity pasteurisation units will also be done. Apart from this, the union will be receiving the ISO 22000:2005 certification as warranted under the Food Safety Act. Food and Beverage – Monthly Update
Traditional sweets launched by Mother Dairy The National Dairy Development Board (NDDB) owned popular brand Mother Dairy has entered into the Indian sweets category by launching chhana kheer, khoya and assorted pack of traditional sweets. The products will be available across all Mother Dairy outlets as well as at the local kirana shops. Khoya will be available in 200 gm pack and chana kheer in 125 gm cups. Prices have been fixed at INR 60 and INR 25 per pack of khoya and chana kheer respectively. The Indian sweets gift pack has been priced at INR 450 for an 800 gm pack. Multigrain breakfast mixes introduced by MTR Foods The popular ready to eat food products manufacturer, MTR Foods Private Limited has come up with a range of multigrain breakfast mixes which are made up of oats, ragi, and jowar. Under this multigrain breakfast mix range, four variants will be available which includes Multigrain Dosa, Oats Idli, Rava Ragi Idli and Ragi Dosa. These products are a perfect combination of health and taste. Moreover, the products are very convenient in terms of preparation as it takes just 12‐15 minutes to get cooked. The products will be available at all the leading stores across India at a price of INR 40 and INR 80 for 200 gm and 500 gm convenient packs respectively. The company is going for aggressive marketing campaigns to promote the newly launched products. With this new launch, the company will become the first one to innovate the traditional foods with new age grains. Nestle sets up its first R&D centre in India Nestle India Ltd. has finally opened its first research and development centre in India. The centre has been set up in its Manesar plant in Haryana. For this, the company has already spent an amount of around INR 2870 mn. The R&D centre will focus on indentifying local consumer's eating habits and taste preferences. It will also develop different methods for using and processing local ingredients for preparing products for India and abroad. Primarily, the centre will concentrate on Asian noodles and the cooking will focus on developing highly nutritious, affordable products in appropriate serving sizes for lower income consumers. Apart from this, the company also plans to extend the range of mainstream products it currently offers in the country particularly in noodles, cereals and dairy categories after doing proper research in the R&D centre. Naturell comes up with protein bars Naturell India Pvt. Ltd., which is already known for its Rite Bite nutrition bars, has come up with a range of healthy protein bars. The nutrition bars have been prepared under the strict guidance of nutrition experts.
Food and Beverage – Monthly Update
The protein bars will be available in three flavours – Choco Slim, Choco Fudge and Honey Lemon. Moreover, each bar will be composed of 20 gm protein, 5 gm fibre, 21 vitamins and minerals, electrolytes, Omega 3, amino acid, and L‐Glut amine. Costa Coffee launches Christmas & New Year special beverages Costa Coffee has come up with a range of beverages to stir up the festive mood of Christmas & New Year. The newly launched offerings include Cinnamon Cream Cappuccino, Toffee Nut Latte, Black Forest Hot Chocolate and Chocolate Mousse. ‘Cinnamon Cream Cappuccino’ is rich aromatic coffee topped with swirls of whipped cream and dusting of cinnamon spice, ‘Toffee Nut Latte’ is toffee flavoured coffee mixed with smooth milk and topped with a layer of cream, toffee sauce and nut sprinkles and ‘Black Forest Hot Chocolate’ is decadent berry flavoured hot chocolate topped with cream, chocolate chips and fruit sauce. All the variants have been priced between INR 125 and INR 140.
News Update Regulatory
Stringent strategies formulated to curb adulteration In order to combat with growing food adulteration, FDAs and FDCAs (Food & Drug Administration and Food & Drugs Control Administration) have come up with two stringent strategies. As per the formulated strategies, the food safety officers (FSOs) of all the states will raid errant food business operators' (FBOs) establishments. In addition to this, they will also put in place a whistle‐blower system across the country that will remain alert and inform FSOs of any cases of adulteration occurring anywhere across the nation. The information providers will also get rewards for helping the FSOs to combat with such illegal activities. Ban lifted on export of milk products The Government of India has lifted export ban on some of the milk products which includes whole milk powder and dairy whitener. As per the notification of the Directorate General of Foreign Trade (DGFT), export ban has been lifted from milk and cream, concentrated or containing added sugar or other sweetening matter including whole milk powder, dairy whitener and infant milk foods. Ban on export of all types of milk products was imposed during February 2011 to boost domestic supply. The decision to waive it off has been taken in response to surplus availability of these products in the country. Food and Beverage – Monthly Update
News Update Expansion Plans
Rajdhani restaurant to roll out new outlets Mirah Hospitality Group, the owner of the Rajdhani thali‐only vegetarian restaurant, has planned to roll out 13 new outlets across the country by the end of this fiscal. Rajdhani, is a complete vegetarian thali restaurant that offers authentic Rajasthani and Gujarati meals. Out of these 13 outlets, two will be opened in Kolkata. Other outlets will be opened up across the country including various locations of north and eastern India. According to certain estimates, an amount of INR 250 mn will be required for opening up these outlets. In addition to Rajdhani restaurant, the group also owns other restaurant brands such as Manchester United (sports bar and pub), Cafee Mangii (a fine dining Italian restaurant chain), Falafels (a Lebanese quick service chain), Ping Pong and operates the Citrus Hotel brand. Punjab Grill steps into overseas markets The fine‐dining chain Punjab Grill has marked its entry into the international market with the launch of its two new outlets in Bangkok and Abu Dhabi. Each restaurant is spread over an area of around 4,000 sq ft. Bangkok and Abu Dhabi had been selected as preferred destinations for the new outlets because a large number of Indians inhibits in these cities. Lite Bite Foods is the present owner of the restaurant Punjab Grill. In addition to its own brands such as Zambar, Asia 7 and quick‐service chains such as Rapps, Big Gulp and Bakers Street, the company also operates franchisee formats of Subway, Pollo Campero and Pino's Pasta Pizza. After these two outlet launches, the company will focus on exploring opportunities in other destinations such as Hong Kong, London, Dubai and Malaysia in addition to expanding outlets in the Indian market. Goodricke Group plans to foray into the dairy market Tea major Goodricke Group is planning to enter the Indian dairy sector. For this, the company has already prepared its diversification project report, which it will submit to the RBI soon. As of now, the company is running a R&D dairy project at Jalpaiguri district in North Bengal, which it wants to turn into a commercial venture later on. As per certain estimates, the total project cost will be around INR 250 mn. Currently, the company which is a part of the UK‐based Camellia Plc, has the permission to do only tea and tea‐related businesses in India. Permission from RBI is required to diversify into any other business. In addition to entering the dairy business, the company is also exploring the opportunities lying in forward integration by venturing into production of milk powder. Food and Beverage – Monthly Update
Industry Expert Speak More Rajdhani restaurant outlets to be launched – Aji Nair, VP, Food and Beverage division, Mirah Hospitality “We have plans to open 13 new Rajdhani outlets across the country by the end of this fiscal. Two of these will be in Kolkata, while we are on the look out in other parts of the country” Packaged sweets launched by Mother Dairy – Subhasis Basu, Business Head, Dairy products, Mother Dairy “These days’ people have become very health conscious and are very meticulous in terms of their food intake. With reports coming in rampantly about adulterated khoya and sweets being sold during festive seasons, Mother Dairy took the decision to launch traditional sweets hence giving the consumers a safe and pure alternative in sweets. There was also a need for khoya in consumer packs from a credible source since most of the households use it for making various sweets” Punjab Grill steps into international market – Amit Burman, Chairman, Lite Bite Foods “These new outlets mark Punjab Grill’s initial steps in the overseas markets. We are now exploring a number of other destinations such as Hong Kong, London, Dubai and Malaysia, besides expanding the brand’s presence in India”
Transactions (SepNov 2012)
Date
Buyer
Target
Size (INR mn)
% stake
Deal Status
Type of Transaction
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 Cafe
274.6
N.A.
Pending
PE
31st Oct 2012
Heritage Foods Ltd.
Kotak India Focus Fund
250
5.64
Completed
PE
Food and Beverage – Monthly Update
Date
Buyer
Target
Size (INR mn)
% stake
Deal Status
Type of Transaction
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
1650
N.A.
Completed
PE
20th Sep 2012
N.A.
1060
N.A.
Pending
PE
20th Sep 2012
Future Ventures India Ltd.
Express Retail Services Pvt. Ltd.
613.5
100%
Completed
M&A
18th Sep 2012
IDFC
Parag Milk Foods Pvt. Ltd.
1,550.00
15‐20%
Pending
PE
Varun Beverages (International) Ltd. Maiyas Beverages And Food ‐ Fund Raise
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
Food and Beverage – Monthly Update
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
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
ITC Ltd.
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
Food and Beverage – Monthly Update
Godrej Industries Ltd.
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.
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
Food and Beverage – Monthly Update
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
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.
Food and Beverage – Monthly Update
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
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
Companies Anik Industries Ltd.
Dabur India Ltd.
ITC Ltd.
Food and Beverage – Monthly Update
Venky's (India) Ltd.
29.3
181.6
201.3
23.1
Events Calendar Food Forum India 2012 Date: 12th – 13th Dec 2012 Venue: Bombay Exhibition Centre Highway, Goreagon (East), Mumbai, Maharshtra – 400063 Organizers: Images Multimedia Pvt. Ltd., S ‐ 21, Okhla Industrial Area Phase II, Delhi ‐ 110020 Phone: 011 – 40525000/40525001
UpperCrust ShowMumbai 2012 Date: 14th – 16th Dec 2012 Venue: World Trade Center WTC Complex, Cuffe Parade, Mumbai, Maharashtra – 400005 Organizers: UpperCrust‐ Indias Finest Food & Wine Magazine, Afternoon House,6, Nanabhai Lane Flora Fountain, Mumbai – 400001 Phone: 022 – 40047256
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Food and Beverage – Monthly Update