www.thedollarbusiness.com
Vol.3
Issue 05
May 2016
100
$2
EXCLUSIVE INSIDE ASHOK GAJAPATHI RAJU Union Minister for Civil Aviation, GoI DR. GURUPRASAD MOHAPATRA Joint Secretary, SEZ & EOU, Ministry of Commerce & Industry, GoI PIRUZ KHAMBATTA Chairman & MD, Rasna International, and Chairman, CII National Committee on Food Processing AMANDA HODGES Senior Trade & Investment Commissioner, Australian Trade Commission, India PANKAJ DUBEY Country Head & MD, Polaris India ASHOK G. RAJANI Chairman, Apparel Export Promotion Council ...AND MORE!
FOREIGN TRADE . EXPORTS . IMPORTS
India's food processing industry has forever been plagued by problems aplenty. And the concerns have prevented it from fulfiling its golden promises.
IS INDIA
SQUEEZING ENOUGH JUICE
OUT OF THE FOOD PROCESSING INDUSTRY? Hard drives
Not hard to drive in profits! High demand calls for high imports
Salt
Export Oriented Units
It's all about achieving economies of scale
Does eternal rest await them?
Not so common an export idea
A story of rise and fall
Volume: 3 Issue: 05 May 2016 www.thedollarbusiness.com facebook.com/tdbIndia twitter.com/TheDollarBiz in.linkedin.com/in/thedollarbusiness/ President (VMPL) & Editor-in-Chief
: Steven Philip Warner
EDITORIAL & RESEARCH Editor Executive Editor Associate Editor (Print) Associate Editor (Online) Sr. Assistant Editors (Print)
: Manish K. Pandey : Indranil Das : Andres M. Molier : Sheela Mamidenna : Sisir Kumar Pradhan, Shivani (Vig) Kapoor Assistant Editors (Print) : Neha Dewan, Ahmad Shariq Khan, Sairaj Iyer Assistant Editors (Online) : N. Sharath Chowdary, Aamir Hussain Kaki Principal Correspondents : Vanita Peter D'souza, Deepak Kumar Correspondents : Aadhira Anandh M., Jasleen Kaur, Manisha Choudhari, Pooja Jain EDITORIAL CONSULTING BOARD Founder & Editor : Anil Goyal Publisher : Avnish Goyal Chief Consulting Editor : Dr. A. K. Sengupta Editorial Advisors : Dr. N.K. Goyal (CMAI), Atul Kumar Saxena (IIA) ADVERTISEMENT SALES & MARKETING Vice-President : Aninda Mondal Associate Vice-President : Dharmendra Jaiswal Manager : Kamlesh Tripathi, Santosh Pandey, Bhaskar Joshi, Pramveer Singh Executive : Maleeha Mushtaq International Representatives Seoul (South Korea) London (UK) ART & PHOTOGRAPHY Art Director Senior Designer Designer Photographer
: Justin Yoon (+82-2-6241-4256) : S. Puri (+44 207 376 1996)
28 COVER STORY
IS INDIA, MAKING, BAKING AND SERVING IT RIGHT?
70 ASHOK GAJAPATHI RAJU
UNION MINISTER FOR CIVIL AVIATION Talks about the 5/20 rule and his vision for the civil aviation sector
: Sujesh Kumar G. : Shaik. Masthan Vali : Gopal Ganesh Reddy : Dileep Kumar
CIRCULATION, SUBSCRIPTION & DISTRIBUTION General Manager : S. S. Sudesh Manager - Subscription : M. Vinay Kumar Assistant Managers : Sanjeev Jain, Buddhi Sagar Pandey, Rajneesh Laroiya Senior Executive : K. Chandra Prakash Associate - Outreach :
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8 THE DOLLAR BUSINESS II MAY 2016
LETTERS TO THE EDITOR
INDIA’S FOOD PROCESSING INDUSTRY HAS FOREVER BEEN PLAGUED BY PROBLEMS THAT HAVE ARRESTED ITS GROWTH. LOGISTICS AND INFRASTRUCTURAL BOTTLENECKS, INADEQUATE INVESTMENTS, UNDESIRED POLICY CHANGES, LACK OF TALENT, AND MANY OTHER SUCH CONCERNS HAVE ERODED ITS POTENTIAL AND GLOW. HOW MUCH LONGER BEFORE CHANGE FOR THE BETTER OCCURS?
MONOLOGUE
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20
24
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PEOPLE SPEAK
From Narendra Modi on GST Bill to Vladimir Putin on Russia’s trade with Finland, and more...
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INBOX
Readers’ feedback, criticism, and appreciation that hit our mailboxes in April 2016
: Rasanpreet Kaur : Parchuri Jhansi : Helen Mary : Swati Sharma, Ganesh Alagonda : Inderkant Padampalle
© Copyright 2016 No part of this magazine may be reproduced in whole or in part without an expressed permission of the publisher. The information on this magazine is for information purpose only. Manish K. Pandey, Editor, The Dollar Business, is responsible for the selection of news and content under PRB Act. Vimbri Media Pvt. Ltd. assumes no liability or responsibility for any inaccurate, delayed or incomplete information, or for any actions taken in reliance thereon. The information contained about each individual, event or organisation has been provided by such individual, event organisers or organisation without verification by us. All disputes are subject to exclusive jurisdiction of competent courts and forums in Hyderabad, Telangana. Printed and published by Avnish Goyal for Vimbri Media Pvt. Ltd. Published at 5-2-198/4, Distillery Road, Ranigunj, Secunderabad - 500 003, Telangana.
Country Head & Managing Director, Polaris India on how he plans to tap the nascent ATV market in India
FOOD PROCESSING
THE DOLLAR BUSINESS ONLINE Sr. Web Developer : P. Surendra Babu SEO Specialists : Sangameshwar Soma, Praveen Kukunarapu Asst. Mgr. (Data & Metrics) : C. Dileep Reddy Associates (Data & Metrics) : Dinesh Reddy, Bhanu Prasad
HR, FINANCE & LOGISTICS Sr. Manager – HR Manager – Accounts Asstt. Manager Sr. Executives Associate
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PANKAJ DUBEY
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AMANDA HODGES
ASHOK G. RAJANI
Senior Trade Commissioner, Australian Trade Commission, on upcoming FTA and more
SPOTLIGHT
AUSTRALIA The 12th largest economy is still dependent on mining & agriculture
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DOCKYARD
90
NEXTGEN NEWSMAKER
HARD DISC DRIVES
92
TDB FORUM
PRIME FOCUS
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DATEBOOK
IMPORTO’NOMICS
MOBILITY DEVICE COVERS
SECRET INGREDIENT SALT
BESTSELLER
The ever-increasing need for digital storage is fuelling its imports
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Chairman, AEPC, discusses issues that are hurting the Indian apparel industry has been a cause for concern. Is there a way to reverse the trend?
India is one of the largest exporters of salt, but logistics remain a hurdle
INDIA TRADE
From India’s rising trade deficit to dairy exports to Russia to preferential trade agreement between with Chile and a lot more.
80
Why importing mobility device covers from China makes sense
GLOBAL TRADE
The possible impact of BREXIT on the UK economy; Sweden’s concerns over Maine lobsters and much more..
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EOUs The declining performance of EOUs
COCHIN AIRPORT CIAL has been the poster boy of PPP projects in India, and its expansion plans are noteworthy
KASHMIR BOX Founder & CEO shares his plan of taking the ‘Kashmir’ brand to the world via e-commerce
Questions about foreign trade that hit our mail box in April 2016
Some trade shows you shouldn’t miss out in India and abroad in May and June 2016 MAY 2016 II THE DOLLAR BUSINESS 9
COVER STORY
FOOD PROCESSING
IS INDIA MAKING, BAKING, PACKING, TRANSPORTING AND SERVING IT RIGHT? Despite being one of the largest producers of agricultural products in the world, India's food processing industry remains for all practical purposes, an infant! Logistics and storage issues have led to enormous wastages over the years in an industry worth $67 billion, and which provides direct employment to some 13 million people. But there's hope. The Centre's recent nod to allow 100% FDI in made in India processed food retail and efforts to encourage investments in infrastructure through lower import duties could lead to better days ahead for the industry. Or are we just being unjustifiably optimistic? The Dollar Business analyses. BY THE DOLLAR BUSINESS INTELLIGENCE UNIT 28 THE DOLLAR BUSINESS II MAY 2016
MAY 2016 II THE DOLLAR BUSINESS 29