Beverages & food november 2013

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Vol. 6, Issue 6, November (I) 2013, Rs. 20/-

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Secretary MoFPI Hussain asks Private sector to chip in to build cold storage capacity

PepsiCo to invest 33K Cr in India by 2020

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epsiCo has announced it will invest Rs. 33,000 crores (equivalent to US$5.5 billion) in India as part of plans to more than double production by 2020.

“India is a country with huge potential and it remains an attractive, high-priority market for PepsiCo,” said PepsiCo Chairman and CEO Indra Nooyi. We’ve built a highly successful business in India over the course of many years, and we believe we’ve only scratched the surface of the long-term growth opportunities that exist for PepsiCo and our partners.

“This investment is PepsiCo’s vote of confidence in India’s future and it represents our deep commitment to this great country.”

The company plans to expand its food and beverage portfolio to cater to the evolving consumer demand in India, while significantly increasing manufacturing capacity to meet growing demand.

PepsiCo plans to double production capacity to more than double levels by 2020.

PepsiCo and partners plan to improve selling and delivery infrastructure, with a particular focus on rural market expansion.

Resources will also be allocated to expand PepsiCo’s collaborative farming program.

“Most importantly, our investments will be aligned with India’s interests,” Nooyi added. “We will be guided by Performance with Purpose, PepsiCo’s vision for building a profitable and sustainable 21st-century corporation that is a good investment for our shareholders, a good environment for our employees, a good citizen in our communities and a good steward of our planet’s resources.

We believe Performance with Purpose will drive sustained value for PepsiCo and positively contribute to India’s development well into the future.”

PepsiCo estimates it has created opportunities for more than 200,000 people since opening its first Indian operations in 1990, through both direct and indirect employment and agricultural collaborations.

The $5.5 billion investment will add more than 100,000 new employment opportunities, the company says.

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he government alone cannot shoulder the responsibility of building cold storage capacity and the private sector too has to chip in to build the requisite capacities in the country, said a top official of the government.

“In the Eleventh Five Year Plan, huge capacities were sanctioned by the National Horticulture Mission, National Horticulture Board and the ministry of food processing industries. We are also in the process of sanctioning more capacity but we will be successful when the private sector invests in cold storages without asking for subsidies,” the ministry of food processing industries secretary Siraj Hussain said on the sidelines of ‘Food 360’ - an international agribusiness and food processing conference organized by the Federation of Indian Chambers of Commerce and Industry (FICCI) and the Andhra Pradesh government.

Hussain pointed out that his views on the cold storage capacity differed from the available data on cold storage capacity in the country.

According to data, the availability of cold storage capacity in 2010

was about 25 million tonnes (mt) while the requirement was assessed to be around 61mt.

Since then, the country has added about 10mt capacity, hence the gap is 26mt.

However, Hussain differed with the data and felt the requirement was much less. “But my assessment is that the gap is not 26mt as there was certain issue the methodology adopted to access the capacities of the cold chain. So the actual gap may be around 15mt,” he added.

Meanwhile, he also said that there must be no restrictions on the inter-state trade of agri goods in the country.

“When there is no restriction on the trade of industrial goods, why there should be any restriction on agriculture goods? Ultimately, it is the farmer who will suffer.

Even the government of India has written to state governments in this regard to enable the farmer to get better price,” he added.

Speaking about the exports of processed food items from the country, he said, the segment had clocked $30 billion last financial year and was growing at a rate of 20%.

Beverages & Food Processing Times - November - I - 2013

Food Processing News

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Disturbing levels of food wastage ignite global call for action

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he report on ‘Global Food; Waste Not, Want Not’ by the Institution of Mechanical Engineers, one of the oldest professional institutions in UK cites lack of infrastructure for appropriate storage and logistics as one of the major factors contributing to the about 1.2 ? 2 billion tonnes of food wasted in the world. The report also highlights that in developing countries wastage mainly occurs between the farm and the marketplace.

The announcement coincides with a visit to India by one of the authors of the report, Dr Tim Fox, who will be meeting senior Government officials from the Indian Ministry of Food Processing Industries, the National Centre for Cold Chain Development and the National Horticulture Board to discuss the findings of the study.

The Institution’s report sheds light on the wastage of around 20 million tonnes of wheat in India each year due to inadequate storage and distribution systems as well as the fact that up to 40% of the country’s fruit and vegetables production is lost between the farm and the consumer due to lack of cold storage, refrigerated transport and poor roads. Along with food wastage, the Institution also sheds light on the waste of associated resources needed to produce food which isn’t consumed, like energy, land and water.

Dr Tim Fox, Head of Energy and Environment at the Institution of Mechanical Engineers, said: “The amount of food wasted and lost around the world is staggering. This is food that could be used to feed the world’s growing population ? as well as the nearly one billion people in hunger today. It is also an unnecessary waste of land, water and energy resources that were used in the production, processing and distribution of this food. “With UN predictions that there could be about an extra three billion people to feed by the end of the century and an increasing pressure on the resources needed to produce food, including land, water and energy, the Institution is calling for urgent action to tackle this waste.?

“The reasons for this situation range from poor engineering and agricultural practices, inadequate transport and storage infrastructure to supermarkets demanding cosmetically perfect foodstuffs and encouraging consumers to overbuy through sales promotion offers.?

“The recent announcement by the World Resources Institute of a new global standard for measuring food loss and waste is something the Institution has been calling for and a step in the right direction towards benchmarking, target setting and monitoring progress, but much more needs to be done.?

Beverages & Food Processing Times - November - I - 2013

Food Processing News

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Huge opportunities in Indian food processing Segment-FICCI-KPMG

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he Indian food value chain is on the verge of a great transformation - from one characterised by high wastage, low processing and low global contribution to one that is more streamlined, more integrated and more significant in the global trade, according to a FicciKPMG report on ‘Enhancing Competitiveness of Indian Food Chain’.

The report, released at the inaugural session of the Ficci’s Food 360 seminar, says the opportunities in the food processing industry are significant and expected to reach a size of Rs 400,000 crore by FY15 contributing to around 6.5 percent to the GDP. The vast Indian agri business market has also triggered a surge in private equity (PE) placements and mergers and acquisitions (M&A) in the past few years.

Over 2008-2012, private equity (PE) investments in agri business have grown to 3.8 percent in 2012 from 0.2 percent in 2008.

During the same period, venture

capital (VC) investments in agri business grew from 0.2 percent to 1.6 percent of the total investments. Agri-logistics is the other area that has been attracting a lot of attention from investors with over $ 60 million invested just in 2012, the report pointed out.

“Continuous financial and regulatory support from government, increasing participation of private and public corporates, and increasing exposure of foreign players is likely to spur investments in developing the infrastructure across the value chain right from farm inputs to the consumers,” KPMG India partner and retail head, Rajat Wahi, said.

Stating the agriculture sector had been suffering from major roadblocks, the report estimated that the loss of primary produce before reaching the market due to lack of proper handling, cleaning, sorting, grading and packaging facilities at the village level was 30-40 percent for agricultural products such as

PE firms develop appetite for food processing firms

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rivate equity (PE) players are paying closer attention to agricultural businesses, especially food processing, as the sector is estimated to grow to Rs 4,00,000 crore by the end of 2014-15.

Thirteen deals together worth $184 million have been signed so far this calendar, according to Venture Intelligence, a research organisation. In fact, PE investments in agri-businesses have more than trebled over the past five years. In 2009, total investment stood at $94 million; by last year it was $352.5 million in 16 deals.

“The rising appetite for such companies among overseas investors; and the higher prices that farm goods command could continue to sustain PE interest in the industry,” said Arun Natarajan, CEO of Venture Intelligence.

Some segments like logistics and equipment and agricultural products have received the lion’s share of the investments since 2009.

Agricultural products, including milk products, spices and edible oil, have attracted $477 million PE funding since 2009.

In the same period, the agricultural equipment segment has secured $134 million and agri-logistics $91 million.

According to Rajat Wahi, KPMG India partner, agriproduct and food processing companies attract PE interest because “there are several companies and brands that have emerged and acquisitions have also been happening.”

Some of the bigger investments include Temasek putting $104 million in Godrej Agrovet in 2012, VKL Seasoning receiving $40 million from India value fund and K S Oils getting $47 million from multiple investors in 2009.

Agri-logistics and equipment companies, too, have been receiving attention of PE players. The requirement for cold chains, warehouses and refrigerated vehicles is huge.

Supply is not enough, and that has opened up an ideal investment avenue for PE funds.

“Besides, the segment is getting organised; the ones attracting investments are those with capacities of 10,000 to 15,000 tonnes,” said Rajesh Srivastava, chairman & managing director (CMD) of the agri-business-focused fund, Rabo Equity Advisors.

On its part, the government has been incentivising private players to set up warehouses and cold chains to reduce farm-to-fork wastage

grains, fruits and vegetables.

According to the report, problems exist at each stage of the value chain. The unreasonably long supply chain results in a steep increase in the total cost owing to procurement, transit and other taxes and service charges levied at various layers. Consequently, the price received by the farmers is in the range of 25-60 percent of what the consumer pays.

Inaugurating the two-day Ficci conference, Ministry of Food Processing Industries secretary, Siraj Hussain, said the cold storage capacity in India was 25 million tonnes (mt) in 2010, while the requirement was around 61 mt. Since then, 10 mt capacity had been added but the deficit was still around 15 mt.

The government was looking at investments from entrepreneurs to bridge this deficit without any subsidy.

On the other hand, he said, India exports of agricultural products stood at $ 30 million per annum and grew at 20 per cent on average in the last five years.

ITC group head-agribusiness, S Sivakumar, said the food processing industry was growing twice as fast as agriculture. He also pointed out that the job multiplier of the food processing sector was much higher than any other industry.

Ficci AP State Council chairperson, Sangita Reddy, said the conference would discuss critical issues like key

constraints that were slowing the growth of the food processing sector and how they were being addressed.

Ficci AP co-chairman and conference general chair, JA Chowdary, said the next wave of industrial revolution could be achieved only by connecting innovation and technology to the complete value chain of agriculture and food processing.

Beverages & Food Processing Times - November - I - 2013

Dabur forays into packaged Milk Shakes under Réal

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abur India Ltd announced its foray into the packaged milk shake market with the launch of RÉAL Fruit Shakes under the brand Réal. This also marks brand Réal extending its fruit expertise into milkbased drinks.

RÉAL Fruit Shakes has been test launched with a single variant - Mango Shake and will be offered to consumers in two SKUS – 200ml for Rs 25 and 1litre for Rs 105. Réal Fruit Shakes provides a unique combination of actual Fruit and Milk as it has got the goodness of fruit in a wholesome way along with the power and nutrition of milk. Made with luscious mangoes, Réal Fruit Shakes gets across the nutrition of milk along with the goodness of fruits to kids in a fun manner.

“Dabur has always been at the forefront of innovation. We

pioneered the concept of packaged fruit juices in India with the launch of with Réal and were also the first to introduce 100% fruit juices and fruit-vegetable juices under with Réal Activ. We expanded the category with India’s first fruit fiber beverage – Réal Activ Fiber+ and have recently introduced the category of Superfruits juices in India with the launch of RÉAL SUPAFruits.

With the growing level of health awareness in India, there has been a spurt in demand for healthy functional foods.

With the launch of Réal Fruit Shakes, we aim to not only extend brand Réal to give our consumers more choices but also make the experience of having milk more enjoyable and nutritious for kids,” said Dabur India Ltd General Manager-Marketing (Foods) Mr. Praveen Jaipuriar.

Mr. Jaipuriar added that the

Amul launches new modern dairy in Virar

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state-of-the-art Amul Dairy costing Rs.1.8 billion that can process one million litres of milk and produce ice-cream and fermented products was thrown open at Virar.

It can double its capacity in

the near future, Agriculture Minister Sharad Pawar said after inaugurating the facility.

The dairy, to serve Mumbai and its surroundings, is equipped with a 50,000-litre per hour integrated milk reception, processing, online pasteurisation, standardisation and

Dairy News company plans to extend the Réal Fruit Shakes range shortly with the addition of other delicious Fruit & Milk combinations. Réal Fruit Shakes is currently being test launched in Delhi and Punjab and the initial response is encouraging.

Dabur plan to soon launch Réal Fruit Shakes in other parts of the country too to cater to the demand for healthy and tasty milk based drinks for kids.

Every kid needs complete nutrition for overall well-being. However, between taste and health, taste is often the winner and it’s a daily struggle for the mother to feed him healthy food on a regular basis.

Réal Fruit Shakes aims to resolve the contradiction between a mom’s and child’s needs by providing a product that is “approved by moms and liked by kids, thereby making health ‘tastier’ for kids. Réal Fruit Shakes resolve the ‘taste and health’ dichotomy in the best possible way.

Apart from being a healthy proposition for kids, it also comes in a convenient format that prevents the hassle a homemaker has to go through to prepare a Mango shake at home. The product is packed in a 6-layered Tetrapak packaging which ensures a shelf life of 6 months. So, kids can now enjoy a Mango shake throughout the year! homogenisation facility.

A centralised computer monitoring system will oversee the traffic management system for operations. The automatic pick-and-place system of milk pouch filling in crates is a global first.

The plant also has the country’s largest fully automatic ice-cream production facility - 200,000 litres per day with a wide range of products and flavours.

It has a dedicated facility for fermented milk products, the first in the country, with a capacity to produce and pack 150,000 litres of buttermilk and 50,000 litres curd and other dairy products daily.

Pawar said the central government will allocate Rs.17,000 crore to the dairy and milk production sector over the next 10 years. Maharashtra Chief Minister Prithviraj Chavan and other top officials were present on the occasion.

Lactalis Group to acquire majority stake in Tirumala Milk Products

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actalis Group, the world’s largest food product company with sales of 15 billion euro ( Rs 1.27 lakh crore), is close to signing an agreement with shareholders of Hyderabad-based Tirumala Milk Products to buy a majority stake in the dairy company, two people close to the development said. The French company could pay up to $300 million, valuing south India’s second-largest maker of dairy products at over 1,895 crore at exchange rate, said another person aware of the impending transaction.

Bolla Bramha Naidu, one of the four founders, who had earlier said there was no consensus among the promoters on the extent of dilution, told: “Majority of promoters is now in favour of selling their stake to the French company though I am not keen on divesting stake.

But I have no other option than to go by the majority decision.”

Naidu said private equity firm Carlyle, which owns a 20% stake, would sell its holding while the four promoters would divest another 50%, resulting in Lactalis owning 70%. “The negotiations are still on and clarity over exact stake sale could take a few more days.”

Nageswara Rao, another founder, directed the queries from ET to Naidu. “Bramha Naidu will tell you the required details.”

A Carlyle India spokesperson declined comment.

Lactalis, a family-owned company, did not respond to a questionnaire to a mail ID sourced from its website.

Tirumala Milk is currently owned by four farmers-turnedbusinessmen from Andhra Pradesh’s Guntur district who own 80% of the company.

Carlyle bought a 20% stake for Rs 100 crore in June 2011.

The deal with Lactalis, if consummated, would thus represent a four-fold jump in valuation.

India’s organised dairy sector saw sales of around $10 billion (Rs 60,000 crore) and is set to grow at a compounded annual growth rate (CAGR) of 1315% till 2019-20, according to a report by Rabobank.

According to an Assocham report, the Indian dairy industry is now the world’s largest, accounting for a 20% share in world milk production.

“The domestic market with 123 million tonnes of milk production in 2011 is projected to reach 190 million tonnes by

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2015,” the report says.

Tirumala Milk, a fast-growing private milk products company, reported sales of Rs 1,500 crore and net profit of Rs 126 crore for the fiscal ended March 2013.

Naidu said the company has recorded sales of Rs 1,800 crore so far this year and expects sales to exceed Rs 2,000 crore in the current fiscal.

South India’s largest dairy company is Hatsun Agro, listed on BSE. Naidu had told in October that though a set of investors, including Danone and TPG, was showing interest in investing in the company, the deal was not progressing in the absence of consensus over valuations as well as equity stake of the strategic investor.

Naidu said he was against diluting his stake in the company even when Carlyle came forward to buy a 20% stake in the company for Rs 110 crore in June 2011. “I am highly possessive about the company, which four us developed like a baby and didn’t feel comfortable selling stake to an outsider. The other promoters were in need of money and we had to sell minority stake then in favour of Carlyle.”

The four promoters were initially partners in an automobile finance company, which they started with an initial capital of Rs 2.5 lakh each around 1989. Two of the promoters - Bramhanandam and Venkat Rao - were already associated with the dairy business and were working with Sangam Dairy.

“I was having good public relations in the villages around Narsaraopet and another friend of us - Nageswara Rao - had domain knowledge and experience in transport business.

The idea of starting dairy business on our own came to us in 1995 after ascertaining our strengths and four of us together invested Rs 50 lakh,” Naidu said.

“Four of us used to fill the milk in sachets and sell at four locations in Chennai those days,” he said.

Naidu said the next generation was not interested in the dairy business. “We could in our generation, as friends, promote nurture and develop the company as one of the leading players in the Indian dairy industry as we could gel well together. Now, the next generation of promoters’ families is not gelling that well together like us and they are not keen to continue in the dairy business.”

Beverages & Food Processing Times - November - I - 2013

Dairy News

Hatsun Agro to acquire Local Hyderabad-based Jyothi Diary companies see a churn in Dairy Business

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airy firms are witnessing increased interest from investors as a changing consumption pattern in the Indian household is showing a clear preference towards protein-rich foods like milk products, pulses and non-vegetarian foods like egg, fish and meat. Close on the heels of the Tirumala Milk Products deal with a French dairy major expected to take a majority stake, Creamline Dairy Products - another Hyderabadbased dairy firm - is scouting to raise up to Rs 250 crore from strategic partners who can help it set up new facilities with better technologies and also boost its portfolio of value-added products.

Creamline, which sells its products under the ‘Jersey’ brand name with Andhra Pradesh and Maharashtra as its main markets, is looking at foreign as well as domestic companies for partnership. At present, Godrej Agrovet holds 26% stake in the company and its promoters are willing to give a substantial stake to the incoming partner, two people involved in the deal said.

In the last fiscal, Creamline had clocked a revenue of about Rs 800 crore but, being in the basic dairy product business, had a margin of about 6-8% compared to the 15-20% range large and established pan-India players enjoy, industry reports showed. “The company is looking to enhance its portfolio of value-added products that enjoy much higher margins than what one gets in products like milk, curd, ghee and buttermilk,” one of the people involved in the deal said. “It’s now looking to bring in a partner who can help it grow the product variety.”

In India, the dairy business is worth about Rs 3.5 lakh crore and growing at a rate of about 15% annually. Increasingly, the rate of growth of demand for dairy products is outmatching the rate of growth of production, which in turn is reflecting in the rise in its prices. In October 2010, Subir Gokarn, a former RBI deputy governor, had for the first time pointed out how household affluence was leading to greater preference for protein-rich foods. He showed since there was a wide discrepancy between its rates of growth of production and demand for these products, the annual rate of inflation for some of the proteinrich foods was as high as 35%.

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airy products maker Hatsun Agro Product is set to acquire a portion of the business of Hyderabad-based Jyothi Dairy Private Ltd for an undisclosed sum.

The acquisition will strengthen Hatsun’s position in Chitoor district in Andhra Pradesh. Through this acquisition, Hatsun also hopes to reach other parts of the state. “This will help the company expand

into other regions of the state,” said R G Chandramogan, founder chairman of Hatsun. The company is still working out the finer details of the deal, which will be finalized by the first week of November, said S Subramanian, CFO, Hatsun.

“The experience of Hatsun will

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help in expansion and better utilisation of the existing infrastructure,” said T Balaji, managing director of Jyothi Dairy.

Jyothi Dairy is a 22-year-old company present across Andhra Pradesh and has a turnover of around Rs 100 crore. Jyothi has production facilities in Hyderabad and Chittoor and milk collection facilities at 10 different locations, a statement from Hatsun said.

The acquisition comes at a time when global dairy giants and private equity funds are vying for a substantial stake in Tirumala Milk. American private equity fund Carlyle wants to sell its 20% stake in Tirumala Milk Products. The PE fund has appointed investment banker Barclays Capital to scout for a buyer.

Beverages & Food Processing Times - November - I - 2013

Beverages News

ITC set to enter branded juice biz with B Natural buy

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igarette-to-foods conglomerate ITC Ltd is set to enter a new segment — branded ready-todrink juices. The company is close to acquiring Bangalorebased Balan Natural Food Pvt Ltd’s B Natural brand to roll out packaged fruit juices under its foods category.

The deal, which is in the final stages, could be valued at Rs 100-200 crore, said those aware of the development. Both companies, however, declined to comment.

But a person privy to the development said on condition of anonymity that ITC will soon make an announcement on the deal, which will be concluded in about 90 days.

This entry will pitch ITC into a highly competitive market against the established leader, Dabur India Ltd, which has a 54

per cent market share through its Real fruit juice brand, and PepsiCo India with a 25-30 per cent market share through its Tropicana juice brand.

According to market researcher Nielsen, India’s branded packaged juice market is estimated at Rs 1,000 crore and growing annually at 15-20 per cent.

This deal will also be the cashrich ITC’s first major acquisition in the foods segment since it entered the business in 2001.The only exception is the acquisition of the Mint-O brand from the Delhibased Candico in 2002 in the confectionery segment.

Explaining the company’s strategy, a fast-moving consumer goods (FMCG) analyst with a foreign brokerage said ITC prefers developing brands on its own rather than making expensive acquisitions.

Currently, the company’s food

Dabur scion plans to expand own F&B venture overseas

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mit Burman, vicechairman of consumer goods company Dabur, who is also the promoter of Lite Bite Foods, has chalked out overseas expansion plan for his food & beverages firm.

Lite Bite, which runs restaurant

chains including Punjab Grill, Zambar, Asia Seven, FrescCo and Baker Street, which added Singapore as its first overseas destination in 2011, is looking at Bangkok, the US, Europe and the UAE markets.

“Punjab Grill should open in Bangkok by December. Then we want to take the brand to the US. We already have a partner in the US and are starting off by looking at locations in Washington area. Hopefully, Punjab Grill will be there in the next six months.”

Burman is also taking Asia Seven and Zambar to Abu Dhabi where the restaurants are expected to

business spans four categories — staples, snack foods, readyto-eat foods, and confectionery that includes biscuits, aata noodles, candy and chips.

The B Natural acquisition also marks a significant step in fulfilling Chairman Y. C. Deveshwar’s aspiration of making ITC the No 1 noncigarette FMCG player in India. The company is eyeing a turnover of Rs 15,000 crore from its non-cigarette FMCG business by 2017-18 against Rs 7,000 crore in 2012-13. Last fiscal, its non-FMCG segment revenue grew 26.5 per cent, while the net overall income rose 19.4 per cent to Rs 29,605.6 crore.

ITC’s non-cigarette business includes branded packaged foods, personal-care, lifestyle apparel, education and stationery, incense sticks and safety matches.

Balan Natural Food, founded by lawyer-turned-entrepreneur A. Nanda Kumar, began production in 2004 and currently offers packaged fruit and vegetable juices in 15 flavours.

According to an ICRA report of May 2012, the company has a processing and packaging facility with an installed capacity of 80 million litres/year in Singapura village in Bangalore.

The company reported an operating loss of Rs 2.2 crore and an operating income of Rs 65.3 crore in 2011-12, the report added. open by February.

“It will open up the entire UAE market for us. We will also be looking at Dubai after this. Even Europe is on the cards,” he said.

Lite Bite is also expanding in travel retail, which Burman said is still in the nascent stage and could be a great tool in brand-building for its restaurant outlets.

To begin with, the company is opening 15 restaurants at Mumbai Airport by the end of this year and a commissary near Mumbai. Burman will also bid for restaurants at Chennai, Kolkata, Ahmedabad and Goa airports.

Railways and metro lines, too, are on the cards for Lite Bite.

At present, the firm runs close to 65 restaurants and plans to add 30 more at Mumbai airport by next year and has 25 more in the pipeline for the next two years.

Burman also plans to list the company when it reaches a critical mass. “We would rather have Rs 250-350 crore turnover with over 100 outlets and then list so that people would want to be a part of the growth story.” It clocked a turnover of close to Rs 100 crore in the last fiscal.

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India spices up the performance of global food, beverage companies

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n 1993, the consumption of aerated beverages in India was a meagre three servings, per person, per annum. Cut to 2013, industry estimates cite that Indians have a per capita consumption of 14 servings.

While that’s small when you compare the global average of 94 servings, India, because of the sheer weight of its population, is a huge force to reckon with for the world’s leading food and beverage corporations.

Despite its low per capita consumption of aerated beverages, India figures high on the priority of leading global beverage corporations PepsiCo and CocaCola.

For example, India is now the seventh largest market for CocaCola globally from practically nothing in 1993 – Coca-Cola reentered the Indian market only 20 years ago, after it left it in 1977.

And the country is also delivering the numbers where it matters. For instance, when Coca-Cola recently announced its third quarter results for 2013, it reported a spike of 22 per cent in volumes of Coca-Cola in India. A company statement said that volumes have been growing continuously over the last 29 quarters with the growth in double digits in 19 of them.

But to be sure, the progress has not been without its shares of setbacks. For instance, a McKinsey article on ‘How MNCs can win in India’ highlights the fact that “For multinationals, the key to reaching the next level will be learning to do business the Indian way, rather than simply imposing global business models and practices on the local market”.

BIG CHALLENGES Citing the example of a leading beverage company, the article points out that this company “entered India with a typical global business model — sole ownership of distribution, an approach that raised costs and dampened market penetration.

The company’s managers

quickly identified two other big challenges: India’s fragmented market demanded multiple-channel handoffs, and labour laws made organised distribution operations very expensive. In response, the company contracted out distribution to entrepreneurs, cutting costs and raising market penetration”.

Probably why, when Kraft Foods, now Mondelez took over the operations of Cadbury in India, it chose to not reinvent the wheel and decided to push the already well established Cadbury’s range of products in India rather than rides on back of their portfolio and launch its own portfolio.

Though Mondelez has since launched its own products such as Oreo biscuits and Tang beverages, the new introductions have not come at the cost of the existing bestsellers such as Cadbury’s Dairy Milk. That’s a mistake that even MNCs such as Hindustan Unilever committed in the past when it took over the range of Kwality icecreams but soon replaced it with its own international brands.

The business went through tough times, but is now on a comeback trail.

However, while food companies have been reporting handsome growth in India, growth in the recent past has been sluggish primarily due to rising competition, slower consumer spending and increasing competition.

Companies such as Nestle that grew its topline from Rs 2,600 crore in 2005 to over Rs 8,500 crore in 2012 in India believe in the long-term potential of the Indian market despite seeing a 4-5 per cent decline in domestic volumes in recent times. That’s because by some industry projections, by 2018, India’s food and beverage industry is expected to grow at a rate of 18 per cent to touch $66.3 billion, up from $40.3 billion at present.

No wonder the world’s largest food and beverage companies are all looking at India with aggressive plans.

But consultants feel that MNCs still have some way to go in India.

Beverages & Food Processing Times - November - I - 2013

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Beverages & Food Processing Times - November - I - 2013

Food Processing News

Indian food additives market to reach $898 million in 2017: Frost & Sullivan

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riven by rising demand for processed food & beverages, revenues of the Indian food additives market are expected to reach $897.7 million in 2017 from $484.2 million in 2012, according to Frost & Sullivan’s new study, Analysis of Indian Food Additives Market.

The study added, “Changing lifestyles and hectic work schedules have spawned a large market for processed and packaged convenience foods. The booming organised retail sector further extends the reach of processed foods. Change in eating habits and the frequent introduction of new products and product lines, particularly in the functional food and beverage market for lowfat, low-calorie products, spells growing opportunities for the food additives market. The market also finds encouragement in supportive government measures, such as policies to promote easy access to loans for small-scale food processing industries.”

The study covered the food additive classes of flavours, colours, preservatives, emulsifiers,stabilisers and sweeteners.

Among these segments, flavours account for 47 percent of the market; sweeteners

contribute the least, by growing at the rate of 25 percent, however, expected to become increasingly popular in the coming years.

Flavours are expected to grow at 13.9 percent, synthetic colours at 7.4 percent, natural colours at 12 percent, preservatives at 15 percent and food emulsifiers at 10.1 percent.

“The additives industry in India is veering towards natural emulsifiers and nature-derived colours. This change in preferences emanates from the increasing health consciousness among Indians,” said Frost & Sullivan’s Chemicals, Materials & Foods Research Analyst.

However, natural food additive manufacturers find it difficult to source raw materials due to the lack of centralised supply chain system and presence of multiple sourcing points. The study finds that participants can forge partnerships with cooperatives and invest in contract farming to counter this issue. Such strategic alliances and joint R&D could also lower the prices of nature-derived products and lead to customised pre-mixes with application specific combination of flavours, colours and other additives for clients.

Some of market restraints

include lack of cold storage infrastructure, an advanced logistics and transportation system for perishable goods, which leads to substantial wastage of agroproduce, adversely affecting farmers and natural food additive manufacturers. In response, the Indian government has allowed 100% foreign direct investment to attract large industry groups to invest in developing cold chain logistics.

“Ironically, certain government policies could stifle innovation.

For instance, the Prevention of Food Adulteration Act (PFA), which governs the food additives segment, permits only certain colours that are certified by the Bureau of Indian Standards (BIS),” noted the analyst.

Nevertheless, continuing product and process innovations in the food and beverage sector will motivate the additives market to expand its product portfolio, along with the entry of global participants will serve as market drivers and can lead to an increase in market consolidation. As smaller retailers from the unorganised sector are acquired, the margins of larger manufacturers will improve.

Changing Consumer Preferences - A Boon for the Indian Food Additives Market, Says Frost & Sullivan

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hanging lifestyles and hectic work schedules have spawned a large market for processed and packaged convenience foods. The booming organized retail sector further extends the reach of processed foods. Change in eating habits and the frequent introduction of new products and product lines, particularly in the functional food and beverage market for lowfat, low-calorie products, spells growing opportunities for the food additives market. The market also finds encouragement in supportive government measures, such as policies to promote easy access to loans for small-scale food processing industries.

New study from Frost & Sullivan finds that market revenues, which stood at $484.2 million in 2012, are expected to reach $897.7 million in 2017. The study covers the food additive classes of flavours, colours, preservatives, emulsifiers, stabilizers and sweeteners. Among these segments, flavours account for 47 percent of the market; sweeteners contribute the least, by growing at the rate of 25 percent, however, expected to become increasingly popular in the coming

years. Flavours are expected to grow at 13.9 percent, synthetic colours at 7.4 percent, natural colours at 12 percent, preservatives at 15 percent and food emulsifiers at 10.1 percent.

“The additives industry in India is veering towards natural emulsifiers and nature-derived colours,” said Frost & Sullivan’s Chemicals, Materials & Foods Research Analyst. “This change in preferences emanates from the increasing health consciousness among Indians.”

However, natural food additive manufacturers find it difficult to source raw materials due to the lack of centralized supply chain system and presence of multiple sourcing points. The study finds that participants can forge partnerships with cooperatives and invest in contract farming to counter this issue. Such strategic alliances and joint R&D could also lower the prices of nature-derived products and lead to customized pre-mixes with application specific combination of flavours, colours and other additives for clients.

Some of market restraints include lack of cold storage infrastructure, an advanced

logistics and transportation system for perishable goods, which leads to substantial wastage of agroproduce, adversely affecting farmers and natural food additive manufacturers. In response, the Indian government has allowed 100 percent foreign direct investment to attract large industry groups to invest in developing cold chain logistics.

“Ironically, certain government policies could stifle innovation,” noted the analyst. “For instance, the Prevention of Food Adulteration Act (PFA), which governs the food additives segment, permits only certain colours that are certified by the Bureau of Indian Standards (BIS).” Nevertheless, continuing product and process innovations in the food and beverage sector will motivate the additives market to expand its product portfolio, along with the entry of global participants will serve as market drivers and can lead to an increase in market consolidation. As smaller retailers from the unorganized sector are acquired, the margins of larger manufacturers will improve.

8

Food products must carry licence number

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ood products manufactured and sold in India will now have to bear the logo and registration or licence number of the Food Safety and Standard Authority of India (FSSAI).

Every food business operator must obtain a 14-digit registration or a licence number which must be printed on food packages.

The move will help consumers know if the product has undergone quality checks and bring down the instances of substandard products, reduce the number of bogus manufacturers and enhance accountability among food manufacturers. The deadline for complying with the provisions is July 1, 2014.

According to the Food Safety and Standards Act India (FSSAI) 2006, every food manufacturer should get a licence from the Food and Drug Authority or an authority connected to FSSAI. If the food manufacturer has an annual income of less than Rs 12 lakh, a process of registration is enough. The centralised act has been implemented to promote safe food across the country. The act came into force in August 2011.

“As per the union government’s notification and the amendment of the Food Safety and Standards (packaging and labelling) Amendment Regulation, 2013, it is necessary to print an FSSAI licence/registration number and FSSAI logo on the packaging of food products. This notification would help the Food and Drug Administration (FDA) track manufacturers who do not have FSSAI licences/registration,” said Shashikant Kekare, joint commissioner (food), Food and Drugs Administration (FDA), Pune.

Dilip Sangat, assistant commissioner (food), FDA, Pune said, “The first notification was issued in June 2013. It had set December 7, 2013 as the deadline for complying with the norms. The food authority, after due consideration of issues raised by the stakeholders, has issued guidelines and extended the date for complying with the norms up to July 1, 2014.”

The move will bring down the number of illegal or bogus manufacturers and put all food manufacturers on the FDA’s radar, ensuring more quality checks on food manufactured and sold here, Sangat added.

Vilas Bhujbal, a trader from Gultekdi, said, “The notification should be implemented in letter and spirit to ensure stringent quality checks and bring down adulteration.”

How to read the numbers The 14-digit number provides information about the manufacturer’s licence

or registration details, and the manufacturing state.

The number encompasses essential information about the manufacturer and is divided into five parts. The first single digit indicates whether the manufacturer is a licence holder or simply registered, the next two digits provide the state code, the following two digits give the year the manufacturer was registered/ licenced with FSSAI. The licensing authority or registering authority is disclosed in the next three digits and remaining are the manufacturer’s licence/ registration number.

The guidelines • The FSSAI logo and licence number of the brand owner shall be displayed on the label of the food package in colour that is in contrast to the background in case of multiple units (manufacturer/packer/ relabeller/marketer) • The addresses of the multiple units on the label should carry the licence number as Lic No xxxxxxxx. In addition, the licence number of manufacturing unit where product is prepared shall also be displayed along with the lot number • In case of imported food products, the importer shall display FSSAI logo and licence number along with the name and address of importer on a sticker to be affixed before customs clearance • The height of letters and numeral of licence number shall be as prescribed in Food Safety and Standard (Packaging and Labelling) Regulation, 2011.

• The regulation of Food Safety and Standards (Packaging and labellin) Regulations, 2011 shall be applicable for this provision • The display of FSSAI logo on the label of the food product is not a mark of certification but it signifies that the food business operator (FBO) holds a valid licence under Food Safety and Standards Act, 2006 • The licence number and logo are allowed to be displayed on the label until the validity of the licence as per regulation of the Food Safety and Standards (Business and registration on food business) Regulations, 2011 Source: Food Safety and Standard Authority of India (FSSAI)

Beverages & Food Processing Times - November - I - 2013

Food Processing News

PURATOS ANNOUNCES ‘THE ULTIMATE TASTE LEADER IN COMPOUND CHOCOLATE’

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uratos, the global leader of finest ingredients for bakery, patisserie and chocolatier markets since last 90 years today announced CARAT as the product of the month for Oct 2013.

Engineered in Belgium, Carat is a unique product made to give an extra chocolaty touch to patisserie, bakery, biscuit, ice-cream and chocolate creations. Its exquisite cocoa taste and inordinate mouth feel gives a wow effect to the preparation it has been used in. A brand new offering from Puratos, CARAT is the Puratos product of the month for Oct 2013. CARAT is a compound chocolate with Great taste experience, thanks to the intense flavour of the specially selected cocoa powders. Chocolate/ cocoa is the most popular and growing taste in patisserie. Pleasant mouth feel, thanks to the smooth texture. Excellent balance between snap and flexibility , thanks to the melting behaviour of the vegetable fat. Easy to use, just melt and go, no tempering needed and Freeze stable solutions.

Puratos has been Inventing and innovating to assist professionals to grow their businesses and introducing Pioneering technologies to improve the quality and flavour of their products. In India, Puratos is the only company in India to provide services across all 3 verticals, i.e.

Bakery, Patisserie & Chocolate.

Puratos India has strong focus on product innovation of bringing new variety, new technology & new types of products to market therefore offering a lot more to customers in India. Puratos India has launched close to 75 products in the span of 5years in India and will continue to grow the portfolio.

We have fully fledged R&D centre in India which tailor-makes the products according to Indian taste, value & functionality. Puratos sells products in over 100 countries around the world.

“Along with CARAT’s remarkable taste, the efficiency of the Puratos India team was also responsible for its successful entry in the market.

Every compound, Indian or I m p o r t e d has its own characteristics to suit different applications & customers.

A n o t h e r advantage to Indian consumers of Carat is reasonable pricing.

Most brands import the compound from their parent companies and are forced to sell at a premium or a price which is exorbitantly high. To reduce the cost price, Puratos India import premium quality raw material and manufacture the product locally in India at their state-of-the-art R & D unit, while maintaining its quality” explains Mr. Dhiren Kanwar, Country Head, Puratos India.

By doing so, Puratos India has given a perfect solution to those customers, who were ready to upgrade their product quality, but still were price sensitive. those Also, customers who never compromised on the quality got a perfect product, but at a reasonable price.

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Our services include: ISO 21469 Certification • Product Registration • Toxicology Assessment • Risk Assessment

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Beverages & Food Processing Times - November - I - 2013

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India’s Ist Fortnightly Newspaper For Beverages, Food & Allied Industries

www.timesinfomedia.com

Salmonella – A

Vol. 6, Issue 6, November (I) 2013, Rs. 20/-

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he Indian food services industry has witnessed strong growth over the past few years.

The industry is further expected to grow, given the rising disposable incomes, a greater population of younger people, the growth of consumers in smaller towns and the widening exposure to new cultures and cuisines besides an increased propensity of eating outside the home.

With a huge agriculture sector, abundant livestock, and cost competitiveness, India is fast emerging as a sourcing hub of processed food. Food processing sector has become a catalyst for the development of Indian agriculture and is of enormous significance to development.

Thus, India’s food processing industry is expected to hit Rs 4,00,000 crore by next fiscal, making up for roughly 6.5 per cent of gross domestic product, according to a joint study by FICCI and KPMG. The industry was worth Rs 3, 30,000 crore in 2011-12, according to the latest available data.

The sector grew at a compounded growth rate of 9 per cent between 2008 and 2012, much above the 3 per cent growth rate for agriculture.

The industry is witnessing very low levels of food processing, while domestic and export demand exist and are growing...The sector also possesses the potential to reduce the burden of subsidies and raise the farmers’ incomes simultaneously.

Increasing organised retail penetration and the government’s proposed mega food parks will encourage business expansions in the food processing sector, which will ensure higher realisation for farmers and a reduction in wastages, the report said.

Around 30 per cent of the country’s food produce gets wasted annually mainly due to the lack of adequate post-harvest infrastructural facilities and inefficient supply chain management.

Only 7 per cent of commodities sold by farmers are graded before sale. The unreasonably long supply chain results in a sharp rise in the total cost, factoring in procurement, transit and other taxes and service charges levied at various stages.

So farmers get only 25-60 per cent of what the consumer pays for the produce, the report said, adding that improving supply chain can benefit the consumers and producers by 20-25 per cent.

Indian food value chain is on the verge of a great transformation? From one characterised by high wastage, low processing and low global contribution to one that is more streamlined, more integrated and more significant in the global trade.

Continuous financial and regulatory support from government, increasing participation of private and public corporate and increasing exposure of foreign players is likely to spur investments in developing the infrastructure across the value chain right from farm inputs to the consumers.

The Government of India has allowed 100 per cent FDI under the automatic route in the food processing sector, in agri-products, milk and milk products, and marine and meat products.

Hundred per cent tax exemption is also allowed for five years followed by 25 per cent tax exemption for the next five years for new agro-processing industries. In addition, full excise duty exemption for goods that are used in installation of cold storage facilities.

The government has set up National Institute for Food Technology Entrepreneurship & Management to offer high quality educational research and management programme specific to the food industry, provide referral advice on food standards, disseminate knowledge on the food sector and provide business incubation facility.

Further, the government has approved up-gradation of Indian Institute of Crop Processing Technology (IICPT) to a national level Institute at a cost of Rs 102.13 crore (US$ 16.36 million).

To implement various Schemes for promotion and development of food processing sector, the government has made a plan allocation of Rs 5,990 crore (US$ 959.73 million) during the 12th Five Year Plan.

The Cabinet Committee on Economic Affairs has approved the continuation of the National Mission on Food Processing (NMFP) for the remainder of 12th Five Year Plan (2013-17). The NMFP outlay for 2012-17 has been kept at Rs 1,600 crore (US$ 256.34 million) consisting of Rs 1,250 crore (US$ 200.26 million) provided by the Government of India and corresponding State share of Rs 350 crore (US$ 56.09 million).

India is fast becoming an essential player in the global food ingredients market. Anticipating the future growth, many big international players are entering the Indian market by partnering the domestic players. This trend will emerge more strongly by 2015, providing opportunities to local players to widen their product portfolios.

10

Sanjay Indani

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ver the last 20 years chocolate products have been at the origin of several salmonella is outbreaks involving mainly children. One of the main characteristics is the very low levels of Salmonella normally found in such contaminated products. Due to the low water activity, the pathogens are not able to grow but these conditions provide a good protection leading to increased heat resistance and survival. It is therefore necessary to take preventive measures during processing to avoid recontamination of the product after the roasting step which represents the only barrier for Salmonella. The particular aspects of the Food Safety System for chocolate are described and outlined.

MICROBIOLOGICAL HAZARDS Introduction Chocolate and confectionery products have a good safety record. Most products, because of their low water activity, can be kept at ambient temperatures (in temperate climates) for several months or even one or two years.

They are not especially susceptible to physical hazards, although occasionally stones or other hard objects can pose a problem in products containing raisins or nuts. Potential chemical hazards are quite limited, depending on agricultural, storage and distribution practices. Mycotoxins do not seem to pose a problem because mycotoxinogenic moulds do not grow or produce toxins inside the beans. On the other hand, there are a number of microbiological hazards related to these products. Some of these are a source of serious concern.

Studies on the microbiological aspects of cocoa examined only the fermentation of raw cocoa beans, because of the importance of the process in obtaining beans of a high quality. The microorganisms involved in the different steps were studied extensively to identify them and to define their role and the influence of their metabolism

on biochemical changes occurring in the beans.

Certain microbiological problems were found not to be of concern to public health.

Spoilage, of certain types of confectionery products with an increased water activity by osmophilic yeasts is a phenlomenon known to occur periodically. However, due to the low water activity (a, = 0.4-0.5) in chocolate, which completely inhibits bacterial growth, this is not even a quality problem. Listeria monocytogenes is not a hazard in factories where dry cleaning procedures are applied. For a long time, the only measures taken to avoid deviations affecting the quality of chocolate-based products were those related to the organoleptic and physicochemical characteristics.

The outbreaks over the last 20 years have demonstrated that Salmonella represents a real hazard in chocolate and it is still a source of concern. Therefore, constant efforts must be made to eliminate or minimize the risks of contamination with Salmonella during chocolate production by introducing preventive measures based on a relevant Food Safety System and by adherence to good manufacturing practices.

Several factors which are specific to chocolate products have contributed to the outbreaks linked to them and have to be kept in mind when establishing preventive measure.

Important characteristics of Salmonella The infective dose of Salmonella is normally relatively high but is influenced by many factors such as the serotype or strain, the susceptibility of the consumer as determined by age, health and immune status, the number of pathogens able to reach the intestine and to multiply, as well as the type of food consumed.

Another important characteristic is the persistence of the pathogens in naturally contaminated chocolate.

Furthermore, the pathogens show a strongly increased heat resistance in chocolate, which may be due to the low water activity and the protective effect of fat.

This means that the temperatures of 70°C-80°C reached during milling, refining and conching do not destroy the pathogens.

RAW MATERIALS The production of cocoa powder, chocolate and part of the confectionery products is a dry operation which does not destroy Salmonella or other vegetative organisms. Therefore, the quality of the raw materials used during manufacturing is very important and will determine the quality of finished products. Simple visual checks at reception are useful tools

Beverages & Food Processing Times - November - I - 2013

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A hazard in Chocolate Industry ‌ !!! to guarantee raw materials of good quality. Presence of condensation in containers or of spoiled packaging material represents a risk. Hygienic conditions at the reception area of bulk materials, such as liquid chocolate masses or sugar, are important; pipes and valves as well as air-intake of pneumatic transport systems should be controlled. Containers such as tanks for chocolate masses can be Critical control point requiring precise cleaning procedures. Correct handling of raw materials is an important part of the preventive system.

Therefore strict separation of highrisk from low-risk raw materials is necessary during receipt of raw material, handling and storage to avoid cross-contamination.

Raw materials of agricultural origin Raw materials such as raw milk, untreated raw cocoa beans or nuts may become contaminated with Salmonella if they are produced under unhygienic conditions.

These raw materials, however, are not critical control points because these organisms are destroyed further along the line. For such raw materials, the heat treatments must be carefully monitored to prevent cross contamination or recontamination with untreated raw materials.

Processed raw materials Certain processed raw materials such as dairy products, cocoa liquor or powder, crumbs or cocoa butter, gelatine, egg products, flours and starches, lecithin and coconut represent an important potential risk. These raw materials should be chosen carefully and purchased from suppliers working according to good manufacturing practices (GMP) and applying an effective Food Safety System which can be verified by discussions, supplier evaluation and audits. When this cannot be done, analysis for Salmonella must be carried out.

Certificates of Analysis for each lot of chocolate or other ingredients at risk should be obtained to confirm that they do not contain Salmonella species and pose no other microbial hazard. At a scheduled frequency, analyze representative samples of incoming materials to verify the accuracy of the Certificate of Analysis and/ or that the incoming materials meet the purchase specifications as indicated in the Letter(s) of Guarantee. The incoming materials should be stored in such a way that the temperature/humidity is controlled and storage practices are adequate to minimize growth of microorganisms and moulds.

Analyses for coliforms or Enterobacteriaceae and for aerobic mesophilic counts can provide additional information on the hygienic status of the materials. However, Salmonella

analysis has certain limitations due to statistical and methodological aspects; thus, prevention should, in principle, not be based on analyses and certificates. Lowrisk processed raw materials, such as sugar, flavours, roasted nuts or processed cereals should be treated in the same way but the number of analyses can be reduced. For new ingredients, risk can be estimated and adequate preventive measures can be applied only if their characteristics, such as origin, conditions of processing and analytical data, are known.

Rework Rework should be handled as a high risk raw material. It should be clearly identified and strictly separated from waste.

Preventive measures taken during collecting, handling and storage can be monitored visually and microbiological analyses can be performed for confirmation.

Water Water, although normally not in direct contact with the product, is an important raw material used in large quantities during processing. It should be of good microbiological quality to avoid the risk of contamination through micro leaks in doublewalled systems: pipes, tanks and equipment. Closed or protected systems should be used to avoid ingress of nutrients favoring microbial growth. Furthermore, systems should be checked for leaks and if possible fitted with Biocide dosing systems. Regular microbiological checks should be performed.

Air Air directly introduced in the product or in zones where the product is exposed must be filtered to ensure safety of the product.

Monitoring is best done by regular microbiological analyses of filters and water traps and by visual checks ensuring their integrity and function.

PROCESSING Heat treatment The occurrence of basic biochemical reactions at the roasting step makes it the most important step in the development of chocolate flavor.

Even though manufacturers accept certain general principles of roasting, many of them apply their own specific conditions, mainly based on experience, to obtain the desired effect. From a microbiological point of view, roasting of beans, nibs or liquor is the only step common to all processing lines having a lethal effect on Salmonella and other vegetative germs. Depending on the parameters, destruction of certain Bacillus spores can also be achieved. Other processing steps applied in manufacturing cocoa and chocolate-based products have the same lethal effect: Pasteurization and Sterilization of beans or liquor; alkalization (dutching); bleaching, dry or oil roasting of nutmeats; cooking of fillings and baking of biscuits. All these steps have to be considered as critical control point. New systems, particularly those offered to pasteurize or sterilize beans, nibs or liquor, must be evaluated. Once validated, the critical parameter such as time, temperature or humidity conditions need monitoring.

Due to the characteristics of the product, i.e. a high proportion of fat and a low water activity, the manufacturing steps such as grinding, milling or conching following roasting or other heat treatment mentioned above have no lethal effect on Salmonella or other vegetative organisms in case of prior recontamination.

Environment and layout Preventive measures to avoid recontamination during further processing are very important in chocolate industry because of the low infective doses of Salmonella in chocolate products. In this respect the environmental aspects, buildings, premises, equipment

as well as personnel, play an important role. It is important to realize that these measures increase, but do not guarantee product safety. Microbiological analyses for monitoring are of limited use but potential risks should be analyzed.

Elimination of residues and maintenance of external installations and premises in the immediate environment of production zones are necessary to avoid attracting birds, rodents and insects known to be vectors for microbial contaminants.

Monitoring involves regular visual inspections of surroundings and of the status of walls, roofs, windows and doors which represent barriers towards external zones. Internal zones may be subdivided into unclean and clean zones. Certain internal unclean zones, such as storage rooms, cleaning rooms or zones where untreated raw materials of agricultural origin are handled, are likely to be contaminated with Salmonella.

Therefore, these zones must be physically separated from other clean processing areas to avoid cross-contamination or recontamination of processed products. Visual inspections should be used to monitor these zones; analyses of environmental samples for Salmonella or indicator organisms provide information of only limited value. Zones located after the barrier represented by roasting or other heat treatments are clean zones which must be physically separated to prevent recontamination. A linear and logical layout of production lines favors the establishment of such physical barriers. Walls and openings in direct contact to external or unclean zones must be controlled or blocked. Potential bypasses, such as air conditioning and transport systems, must be kept under control.

In the case of personnel, application of the usual good hygienic practices is necessary but must be accompanied by a

strict control of movements. If necessary, adequate measures such as hygienic junctions between clean and unclean zones, (requiring shoe changes, for example), should be installed to maintain an efficient separation. Vehicles such as forklift trucks, or tools such as vacuum cleaners, must also be confined to defined zones, clean or unclean. Since production of chocolate, cocoa powder and certain confectionery products are considered to be dry operations, it is important to separate dry and wet zones. Installations and rooms used to clean equipment must be separated from dry zones. In these dry zones it is necessary to avoid wet cleaning as much as possible.

If unavoidable, water residues must be eliminated and wet spots dried immediately to eliminate the risk of microbial development.

Microbiological analyses (Salmonella and Enterobacteriaceae) of samples taken at critical points can be performed to confirm the effectiveness of the system.

Particular attention should be paid to access points from external zones, to weak points in the separations and to residues.

Corrective measures should be taken in response to critical situations such as positive Salmonella results or increases in the counts of Enterobacteriaceae: cleaning and disinfection, modification of the separation measures, increased sampling of environmental and product samples. Verification of the effectiveness of these measures is necessary. The hygienic status of equipment must be confirmed by appropriate samples such as product, swabs or contact plates.

A particular attention must be paid in case of work or modifications performed by technical services coming from unclean zones and representing an increased risk.

FINISHED PRODUCTS If a proper Food Safety System is applied, analyses of finished products are performed only for verification. The frequency of sampling must take into account the general conditions described above as well as to the specific features of the factory and the line. When results indicate that the line is not under control, the Food Safety plan should be reviewed.

Author is Head-Food Safety at Qsafe Consultants (India).

He is lead auditor & trainer in food safety. He is empanelled with FSSAI & State FDAs as a trainer & conducted more than 500 training sessions across India. For any query related to food safety or FSSR, he can be contacted on 07666578715 or sbi@qsafeindia.com

Beverages & Food Processing Times - November - I - 2013

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Beverages & Food Processing Times - November - I - 2013

Food Grains News

States told to build blocklevel godowns for grains under food law

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he Centre directed State Governments to take immediate steps for constructing intermediary godowns at block level under the rural employment guarantee scheme, MGNREGA, to ensure additional storage facilities for effective implementation of the National Food Security Law. In a joint letter to all Chief Ministers, the Union Rural Development Minister, Jairam Ramesh, and Food Minister, K V Thomas, said States can construct intermediary godowns through the scheme.

“We request you to take immediate steps to identify locations in each block where storage is needed, identify land required and ensure that works are taken up under MGNREGA after following the due process laid down under the MNREG Act, 2005,” the letter said.

It said Schedule—I of the Mahatma Gandhi National Rural Employment Guarantee Act had just been expanded to include construction of foodgrain storage facilities for implementation of the food law and expressed hope that the decision would help in creation of additional food storage facilities for “effective implementation of the National

Food Security Act, 2013”.

The Government said such intermediate storage at the grassroots level, apart from being a primary component in the entire supply chain, would also help reduce leakages considerably.

“We expect that these facilities are built by the line departments or Zilla/Blck panchayats, the wage:material ratio (60:40) will apply at the block level,” the letter said.

The Centre’s direction came, days after it announced its decision to set up intermediary godowns, which are generally created at block level, for efficient and smooth distribution of foodgrain via public distribution system.

The Government said it had long felt the need for the creation of intermediate storage facility at zilla/block/ village panchayat levels. The State Governments are required to provide land, while the Centre will bear the entire construction cost.

At present, in many States, foodgrains are lifted from Food Corporation of India storage depots and sent directly to the fair price shops, resulting in 25-30 per cent leakage and pilferage.

India gets bids above floor price for wheat exports

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he traders received bids above the floor price for wheat exports, trade sources said, reflecting good response after a cut in the floor price intended to boost shipments from the world’s second-biggest grower.

Last month, the government cut the floor by $40 a tonne to $260 for supplies from government stocks, to make exports more attractive to the West Asia and neighbours such as Bangladesh.

The three state-run trading companies had all failed to sell in the last round of global tenders in October, when the $300 floor made Indian wheat expensive in comparison to rival supplies from the Black Sea. In tenders, PEC Ltd received the highest bid at $290 per tonne for its offerings on the west coast for shipment in December, while State

Trading Corp. and MMTC Ltd recorded bids of $286 a tonne in their respective tenders.

“Indian supplies have become on par with Black Sea origin,” said Tejinder Narang, adviser at New Delhi-based trading company Emmsons International.

Traders said supplies from the Black Sea were available at $280-$290 a tonne FoB. They said Indian wheat was benefiting from expectations that global prices would rise next year as supplies from the Black Sea fell.

The Indian government stuck to its floor price of $300 until last month after managing to export nearly 4.5 million tonnes between August 2012 to March 2013 as part of its strategy to cut huge stockpiles.

On November 1, India’s wheat stocks stood at 34 million tonnes, three times more than the target for the Oct-Dec quarter.

The high level of stocks at government warehouses, boosted by a series of bumper harvests since 2007, has forced the staterun Food Corporation of India (FCI), the main grain procurement agency, to store wheat under tarpaulins.

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Warehousing plays major role in implementing food security: Food minister

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he Food Security Bill provides food grains to about 82 crore people across the country and there is a strong need to ensure sufficient warehouses to ensure that the grains reach the intended targets. “For this, we will need space to store over 85 million tonnes of grain by 2014,” said K V Thomas, minister of state, consumer affairs and food and public distribution, government of India. “In 2009, we had space for 55 million tonnes, and today, we are only at 78 million tonnes.”

The minster was giving the inaugural address at a conference on “Building Warehousing Competitiveness - 2013: Maximising Returns Through Capital and Operating Efficiencies”, organized by the Confederation of Indian Industry (CII) - Institute of Logistics in Mumbai.

Thomas emphasised that warehousing was an important sector in the context of implementing the food security, which act the government adopted earlier this year. He urged entrepreneurs to take up the task of building warehouses, even though it was not lucrative enough. “Warehouses should have the support of government and I believe banks give out special loans for building warehouses because as an industry, we have to grow and India needs more warehouses,” he averred.

He said the government was even thinking of allowing village panchayats to build intermediate warehouses, which will bring storage areas close to the recipients. He pointed out that one of the major reasons for leakages in the public

distribution system was due to the lack of warehouses, which led to food grains rotting. “To distribute rice at Rs 5 per kg, the government spends Rs 28. This is a crime,” he said, but added that he was confident the leakages could be plugged.

Deviating from his written speech, the minister said India was moving from a welfare state to a rightsbased country. “The first step in this direction was the Right to Information act. This is a new and positive turn,” he added.

Thomas said the RTI was followed by laws on right to work (the National Rural Employment Guarantee Act), the Right to Education, and finally, the Food Security Act. But he added that there was some concern whether India could produce sufficient food grains, but added that India would have enough not just to feed the entire nation but also have some surplus for the export market.

Moving beyond warehousing, the minister said on reason for the high prices of food was because the government had maintained a high “minimum support price” (MSP, the price at which the government purchases food grains from the farmers). “We can’t sell below the MSP,” he said.

Thomas complained that some traders had taken advantage of the onion trade to jack up prices, and said the government was aware of their actions and would act if necessary. In his written speech, the minister said logistics companies need to be efficient in their operations and mechanise operations to the extent possible so as to achieve cost savings and reduce losses.

He said India’s soon to be expanded national highway network, improved efficiencies in rail cargo network schemes such

India Poised to Resume Wheat Exports

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ndia is set to resume wheat exports after receiving strong price bids for export tenders issued by state trading agencies, a move that would likely weigh on global prices as one of the world’s largest producers looks to reduce pressure on its overflowing granaries.

The South Asian country was forced to cut the minimum export price for wheat to $260 a ton from $300 in late October after having failed to attract any buyers in a previous tender.

This time around, state-run trading companies have received an overwhelming response to their tenders to export 340,000 metric tons of wheat with all

price bids qualifying in the latest tender. Global prices had fallen after India had cut the minimum export price.

State Trading Corp. received seven bids for exporting 120,000 tons with Agri Commodity and Finance of Dubai quoting the highest price, $286.20 a ton. The lowest offer came in at $278, according to company executives and traders.

PEC Ltd. received four bids between $289.90 and $273.10 a ton for shipments of 70,000 tons from the eastern port of Krishnapatnam. It received six bids ranged from $284.70 to $268 a ton for shipments of 90,000 tons from the western port of Kandla.

as airport expansion, and the Golden Quadrilateral would ensure improved efficiencies in road and rail transport besides reducing delays and losses.

Speaking at the event, B S Vasudev, Chief Commissioner of Customs, Mumbai zone, pointed out that businessmen could use custom warehouses where goods could be stored for up to one year without the payment of customs duty. “For the first three months we don’t even charge interest on the goods stored,” he said. The senior customs officer said such warehouses could be set up either by importers or by those in the warehouse business.

He urged the captains of industry present that if ever their complaints were not being addressed, they should immediately escalate their complaint to the next level, and if needed, till the highest level.

“Let me assure you, our officers are always there to help,” he asserted.

B Narayan, group president, Procurement and Projects, Reliance Industries Ltd, shared his experience about the difficulty of storing and transporting liquid such as crude, and strongly advocated automation.

“Automation ensures efficiency, because warehousing work is routine and monotonous and people get bored, and it helps you know exactly how much inventory is there in the warehouse,” he said.

Aman Khanna, Associate Director, Ernst & Young Pvt Ltd, said the warehousing sector has huge potential, but that many in the sector were still not doing too well. He also said there is a dire need for higher end warehouses in the country.

State-run MMTC Ltd. received five bids, priced between $285.95 and $260 a ton, for 60,000 tons.

India had emerged as one of the biggest wheat exporters over the past year-and-half following a global shortage because of a drought in Eastern Europe. During this period, it sold 4.2 million tons of the grain at an average price of $311 a ton, about $10 above the cost it incurred for procuring it from farmers.

However, its strong run was threatened because of a fall in global prices. But, wheat prices have started firming up again because of strong demand from countries such as Egypt.

“I think India is now wellpositioned to export again as the government would likely approve most of the export-price bids in the latest tender,” said a senior Mumbai-based executive with an international trading company.

Beverages & Food Processing Times - November - I - 2013

India poised to achieve selfsufficiency in pulses

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mid expectations of a record rabi crop due to good monsoon rains, adequate soil moisture and a rise in the groundwater table, India is set to record self-sufficiency in pulses this year.

The first advance estimate of the

ministry of agriculture for 201314 pegged kharif production at 6.01 million tonnes (mt), a two per cent increase compared with 5.91 mt the previous year. The India Pulses and Grains Association (IPGA) estimates production of kharif pulses at seven mt this year.

Food Grains News “We estimate rabi pulses output to rise five-10 per cent. This year, agro climatic conditions have been very supportive, especially in major producing states such as Rajasthan,” said Bimal Kothari, vice-chairman of IPGA. “We are expecting exceptionally good rabi production of both pulses and oilseeds this year due to favourable climatic conditions.

A good monsoon, followed by intermittent extended season rainfalls, turned the climate in favour of pulses. India is moving gradually ahead to become selfsufficient in terms of pulses this

year. However, the actual output would determine trade,” said Ashok Gulati, chairman of the Commission for Agriculture Costs and Prices, which decides the minimum support price (MSP) for agriculture commodities. The rabi season accounts for about 70 per cent of India’s pulses production.

Against an estimated overall production of 18.45 mt in 2012-13, India’s annual pulses consumption stands at 20 mt; the deficit is bridged through imports.

A substantial rise in the MSP for pulses helped farmers increase acreage for the crop. Two years ago, the government had raised the MSP for tur and urad to Rs 4,300 a quintal from Rs 3,200 and Rs 3,300

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a quintal, respectively.

This year, the MSP for moong was raised from Rs 3,500 a quintal to Rs 4,500 a quintal.

This year, kharif pulses acreage surged to 10.2 million hectares, compared with 8.8 million hectares last year. It is expected the rabi acreage would stand at a record high this year.

Due to the recent appreciation of the rupee against the dollar, the import of pulses has slowed.

With an estimated 10 per cent increase in domestic output, India would comfortably meet its demand of 20 mt. “To maintain a fair trade balance, the government must allow the export of pulses.

While imports are allowed, exports are banned. This is an unfair trade practice that should be stopped immediately,” Gulati said.

This year, the harvesting of kharif pulses and the sowing of the rabi crop have progressed well so far.

Despite the prices of chana, the largest rabi crop, being lower than the MSP through most of this year, it is expected farmers would aggressively increase the acreage for this crop this season, as chana is grown in small and marginal land, which is unfit for other crops.

Beverages & Food Processing Times - November - I - 2013

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India may produce Farm sector growth rate may triple on good monsoon: CACP paper record wheat output this year: Agriculture T Secretary

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he country’s wheat production this year is likely to surpass the previous record of 94.88 million tonnes on better coverage and good weather condition, Agriculture Secretary Ashish Bahuguna said.

Production of gram, mustard seed and barley output may also exceed the previous record if farmers receive one-two good spells of rains next month, he added.

India, the world’s second-biggest wheat grower, had produced a record 94.88 million tonnes of wheat in the 2011-12 crop year (July-June), buoyed by a good monsoon. Poor rains in 2012-13 lowered the output to 92.46 million tonnes.

“As of now, rabi (winter) crop prospect is very good. Weather condition, soil moisture and water levels in reservoirs is better and ideal for wheat and other rabi crops. If weather condition remains good throughout, wheat production should be a record this year,” Mr Bahuguna told.

Although wheat sowing has been slightly delayed but area coverage

so far has been better than last year, he said.

According to official data, wheat has been sown in 4.15 lakh hectares till last week, as against 83,000 hectares in the same period last year. Total area sown for all rabi crops has also increased to 65 lakh hectares, which is three times higher than achieved during the same period of last year.

Wheat is a major Rabi crop sowing of which begins from October end and harvesting from April.

Mr Bahuguna said: “There will be more area under wheat and other crops. Yields are also expected to be better with adoption of better varieties. But we have to see weather condition in March, which would be crucial for wheat crop.”

As far as other crops are concerned, he said, “If we get one or two spells of rains in December, then definitely it would be a record crop for mustard, gram and barely also.”

The government has set a rabi production target of 12 million tonnes for pulses, 14 million tonnes for rice, 4.4 million tonnes for maize and 1.5 million tonnes for barley.

Agri ministry proposes import duty on pulses

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he ministry of agriculture has proposed a steep hike in import dutyfor pulses in the range of 20-30%. The proposal is being discussed with the department of revenue.

This move has been triggered as traders are importing pulses and selling them at prices lower than those quoted by domestic producers.

According to market sources, traders are importing pulses from Myanmar (Burma) at prices far cheaper than that in the domestic market and selling it to state trading agencies at minimum support price (MSP).

According to industry data, reportedly, traders are importing tur at Rs 3,300-3,500 per quintal from Myanmar currently, while domestic prices are ruling at Rs 4,300 per quintal.

Prices of some varieties like gram and urad are quoting even below their respective MSPs in many markets.

Currently, the import duty on pulses is zero.

With the increase in minimum support price, pulses production has increased and so is the availability in the domestic market.

Pulses’ imports are being permitted at zero duty since 2006 to ensure availability in

the domestic market. India, the largest producer of pulses, imports about three million tonne of lentils every year to fulfil its domestic demand.

Pulses and oilseeds are among the major components of India’s annual food import.

The central government last month once again reimposed stock limits on state holding of pulses and edible oil in order to prevent hoarding of such essential commodities by bulk users.

Meanwhile, all ministries concerned – food and agriculture have recommended for a hike in import duty of refined palm oil from existing 7.5% to 10%. The import duty on crude palm oil will continue to remain at 2.5%.

This is to discourage excessive import of refined oil into the Indian market. Edible oil imports in 2013-14 crop marketing year should be around 2012-13 level of 10 million tonne, estimated officials.

According to the Economic Outlook for 2013-14, the Prime minister’s economic advisory council (PMAEC) pegged the output of pulses to be over 20 million tonne in 2013-14. In 2012-13, India had produced 18.45 million tonne of pulses, the best so far.

he agriculture sector is likely to grow in the range of 5.2-5.7% in 2013-14, nearly three times more than the last year as good monsoon has raised the prospects of bumper harvest, a CACP discussion paper said.

It warned however that “automatic” cascading of bumper harvests to increase the economic activity may not be realized unless the policymakers play the facilitator role well. The farm sector had grown at 1.9% last fiscal.

“Comparing these likely agriGDP growth rates in 2013-14 agriculture year (July-June) with the 2012-13 performance, it turns out that agri-GDP growth is likely to be about three times higher than last year,” said a discussion paper co-authored by CACP chief Ashok Gulati.

The farm growth is expected to be in the range of 5.2-5.7% this year because monsoon showers have been one of the best in the country has experienced during the last two decades or so, it said.

Gulati, in his personal capacity, said in the discussion paper, “Farm growth is likely to come largely from oilseeds, pulses, cotton and coarse cereals belt of central and western parts of India, which is less irrigated and thereby more dependent on rains.”

The Commission for Agricultural Costs and Prices (CACP) is a statutory body under the agriculture ministry which advises the government on price policy for major farm commodities.

Noting that higher agri-GDP growth is likely to boost the overall performance of the economy via its multiplier effect, the paper said that farm income may rise by 15 per cent in nominal terms, triggering some increased demand for agri- inputs to durable and FMCG goods in rural areas. However, the virtuous cycle of economic growth may just be a distant dream unless the necessary condition of increasing rural or farm incomes is realized, it said.

Suggesting that the government prepare well for a big harvest, the paper said it should liquidate at least 20 million tonnes of foodgrains in

the domestic market or for exports without compromising on the needs of Food law.

Clearing excess stock for new crop will help contain food inflation and also save on high carrying costs of grains and thus reduce fiscal deficit, it said.

Second, the paper suggested delisting of fruits and vegetables from Agricultural produce market committee (APMC) Act and incentivise processors and modern retailers to buy directly from farmers “This would compress their value chains benefiting both consumers and producers, saving on large wastage, and further bringing down food inflation,” the paper said, adding that once food inflation is down, subsidies on fuel and fertilisers can be cut more aggressively reducing fiscal deficit.

Third, the paper recommended that the government facilitate and create conducive international trade rules and policies so as to hedge farmers against falling domestic prices, because of increased supplies.

FSSAI labeling issue hits packaged food imports hard

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t is not just your favourite imported chocolate that went missing from shop shelves this festive season. Crispies such as Pringles, gourmet cheese, olive oil, biscuits, noodles, pasta, jams, honey, oats, sauces... you name it... were hardly to be found this Diwali as the Food Safety and Standards Authority of India (FSSAI), the country’s apex regulator, came down heavily on importers overlabeling issues.

Government sources indicate that packaged foods worth over Rs 750-1,000 crore were stuck at various ports and airports across the country as the food safety regulator insisted that importers desist from using stickers on food products to indicate crucial details such as the product type, price and nutritional value.

What’s worse? The stand-off, on for the last three months, shows no signs of abating, as FSSAI refuses to budge from its position.

“FSSAI’s move is in line with the law, and all companies – be it

Indian or foreign – should comply with it. Stickers are temporary measures. When our norms are clearly laid out, companies must print them on the packs that are to be shipped to India,” an FSSAI official when contacted said. He declined to be quoted given the sensitivity of the matter.

But importers, irked by the lacklustre Diwali sales, say that if the issue is not sorted out soon enough could impact business during Christmas and New Year too. Almost 50-55% of packaged food imports in India happen during the festive season, since it is utilised mainly for gifting purposes besides consumption.

Amit Lohani, convenor, Forum of Indian Food Importers, a body of food importers in the country, says FIFI has already made numerous representations to FSSAI in a bid to resolve the issue. “On October 31, FSSAI came out with a notification agreeing to one of our demands, which is to allow the food safety logo on a sticker. This

is with immediate effect,” Lohani, who imports confectionary, snacks and coffee among other products, said.

Lohani points to other issues worrying importers. “Such as 100% sampling of containers coming into the country,” he says. “Earlier sampling was to the extent of 5-10% not more. This was to give an idea of what the consignment was made up of. With 100% sampling of each and every container now, this is obviously leading to a huge delay. Containers are hardly getting cleared,” says Lohani.

Slower product approvals are another issue bogging importers for a while now. Lohani says there are almost 11,000 applications pending approval from the FSSAI, with the body clearing just about 8-10 applications a day. “At this rate, the regulator will take about two to three years to clear the backlog,” he says.

However, there are voices that speak in favour of the food safety regulator’s recent moves.

Says Saloni Nangia, president, Technopak Advisors; “The FSSAI’s move to enforce labeling standards is a step in the right direction. India for long has been a dumping ground for products that are well past their sell-by-date.

At least now there will be some accountability. Product quality is compromised with the use of stickers. FSSAI is attempting to stop that.”

Beverages & Food Processing Times - November - I - 2013

QSAFE CONSULTANTS (INDIA) YOUR FIRST PARTNER IN FOOD SAFETY

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t n p e a G sm s e ss

Machinery & Packaging News

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The thousandthKrones Contiroll HS High-speedwrap-around labelling from Krones goes from strength to strength

TOTAL FOOD SAFETY EXPERTISE SUSTAINABLE BUSINESS STRATEGIES RISK MANAGEMENT TRUSTED SOLUTION NATION-WIDE PRESENCE

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t was back in 2005 that Krones AG, Neutraubling, Germany unveiled a milestone in terms of wrap-around labelling: it developed the Contiroll HS! With a rating of up to 66,000 containers an hour, what was then the newly developed Contiroll High-Speed labeller eclipsed everything that had gone before. Today, after eight years, Krones has booked an order for the thousandth machine of this series, which means the Contiroll HS has most definitely secured itself a permanent place in the international beverage industry. And, now it’s even better!

One of the salient factors of the Contiroll HS isthat the labels are cut electronically.

Thanks to variable utilisation and fast replacement of the vacuum cylinders, different container diameters and output spectrums can be handled on one and

the same machine. This is a particularly attractive option for clients who want to fill and dress filling entire families of containers on a single line line. Shorter label lengths, e.g. for 0.33 or 0.5-litre bottles, are run at maximum speed, while longer lengths entail a concomitantly reduced output. Conventional machines, by contrast, always have to base their rating on the longest label they need to handle. Blade replacement is extremely simple, requires no tools, and takes only a minute. The blade’s guaranteed useful lifetime is 100 million cuts. The vacuum cylinders used to be very heavy, but now, thanks to the new lightweight construction involved, they are considerably easier to handle. What’s more,they are fitted with quick-change suction bars, which feature a non-stick coating for easier cleaning.

Beverages & Food Processing Times - November - I - 2013

Machinery & Packaging News

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Amcor expanding its The Emerson Cup 2013 Announces Its Winners For The 6th Edition, operations in India Showcasing Excellence Once Again

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he company is reinforcing its position in the expanding sector of Indian packaging to achieve inorganic and organic growth. The report says, meanwhile, the organization is planning to split its divisions – setting up a new company for its other units and retaining its plastics divisions.

By 2015, packaged food industry of India is expected to double up to $30 billion on the account of arrival of multinational companies in the modern retail trade and this sector.

Ralf Wunderlich, who is the managing director & president of Amcor Flexible Asia Pacific, while commenting on this mentioned that the organization was expanding its operations in India through a series of planned acquisitions.

Last year, the company purchased Uniglobe Packaging Ltd. and Alcan Packaging earlier to that. He further mentioned that their business in India annually generates $100+ million revenue and is has marked double-digit growth. Wunderlich further mentioned that their operation in India is to fulfill the needs of expanding flexible packaging market of India; hence, they are safeguarded from the falling rupee against the dollar in the span of last quarter. He further mentioned that, in the Indian market, they are planning to expand inorganically and organically. He said that they know India is a huge country

offering a lot of prospects and is segmented in the four regions and they are looking out to have their presence in all these four segments. Amcor has plants in India at Haridwar, Daman and Chaken. Prominently for Amcor, packaged food industry of India, by 2015, is likely to double to $30 billion on the account of influx of multinational companies in the modern retail trade and sector, accordingly to Assocham – an industry body.

In a related report, meanwhile, Amcor is likely to be dividing up its operation. In August, Plastics News reported that the new body being formed from the split-- AAPD that is Australasian and Packaging Distribution Ltd. will be an individual listed organization by the end of 2013. AAPD will manage the beverage, glass, and fiber can packaging operations in New Zealand and Australia, along with the packaging distribution operations of Amcor in Australia and North America.

Himachal Pradesh court extends stay on plastic ban

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himla: The Himachal Pradesh High Court extended the stay on the state government notification banning 25 junk food items in plastic packaging till December 09.

It also granted time to the central government to file its reply.

The June 26 notification banned junk food items like chips, kurkure, biscuits and noodles in plastic and non-biodegradable packaging for sale and stocking from July 01 in compliance with the high court orders.

A division bench comprising Justice Sanjay Karol and Justice Rajiv Sharma directed the parties to complete the pleadings by December 09 and clarified that

no further adjournment should be granted.

The court passed the orders on the petitions of the Sanyukt Vyapar Mandal of Shimla, the Indian Biscuits Manufacturers Association of Noida and the Haroli Block Industries Associations of Talhiwal in Una. Earlier, the high court on September 03 had stayed the notification till November 19.

As per the court’s judgment, eatables like potato chips, cookies, candy, chewing gum, ice cream, chocolates and noodles would not be available in polythene packets.

Essential items like milk and vegetable oils are, however, exempted from the ban.

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he Emerson Cup, an annual event organized by Emerson Climate Technologies to recognize outstanding and environmentally responsible designs in air-conditioning, revealed its winners for 2013 today. An unprecedented high quality of entries for The Emerson Cup 2013 competition proves that India is one of the global hubs for innovation and energy efficiency in building industry.

The Emerson Cup 2013 had three award categories – New Building, New Building – With Emerson Technologies and Retrofit Building. Each award category had two winners – one for a project from metropolitan cities and another one from emerging cities.

The awards started from Retrofit category for Emerging City. The first project to be announced as the winner was BWI Automotive Technologies Pvt. Ltd. at Rewari, Haryana by Mr. Sridhar Mohanty.

This was followed by winner from Metropolitan City for Retrofit Category, bagged by Green Initiative teams at Infosys Ltd. for the Infosys Chennai – Shols project

at Chennai, Tamil Nadu. The next announcement of award was for New Building category. Emerging City project for this category was awarded to Start Up IT Farms Pvt. Ltd. from Chandigarh, by M/S Design Atelier. The Metropolitan City award for New Building went to Mr. Satish N. Iyenger, Services Consultants for Puma Store at Bangalore, Karnataka.

This was followed by the final award category of New Building –With Emerson Technologies. The Emerging City project award was announced for Schott Kaisha Pvt. Ltd. at Vadodara, Gujarat executed jointly by Shah & Talati and Apex Consultants & Engineers.

The Metropolitan City award was bagged by ElectroArc Consulting Engineers for their project NetApp (India) Pvt. Ltd. at Bangalore, Karnataka.

“The high quality of entries for The Emerson Cup competition reflect the growing awareness of energy efficient technologies and building design in India, not only in developed cities but also emerging markets”, said Giovanni Zullo, Vice President – Marketing & Planning Asia Pacific,

2 cold storage chains coming up in Bengal, says Anwar

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he Centre has planned to open two cold storage chains in West Bengal, for which work has already started, NCP leader and Minister of state for agriculture and food processing Tariq Anwar said.

“The projects at Jangipur and Jalpaiguri would cost Rs 132 crore and Rs 113 crore, respectively. It would be put up in a public-private-partnership (PPP) model and the Centre would provide Rs 50 crore for each project, while the rest would be funded by private players,” Anwar said.

Stating that the role of

agriculture cannot be ignored in a country like India and that value addition through food processing was essential, Anwar said, “Besides the cold storage chain, proper packaging and minimum wastage is essential for proper implementation of Food Security Bill.”

He said there was no shortage of agricultural produce in the country and attributed the recent crisis to poor transportation. “Monsoon had been bountiful. Only due to poor transportation, has the scarcity surfaced and middlemen were taking advantage in the process,” he said, adding that most

Emerson Climate Technologies, addressing the presentation ceremony. “Emerson continues to be committed to innovation and environmental responsibility, serving the market needs of this important region with dedicated products and services; we are pleased to see the successful integration of Copeland Scroll™ products in many outstanding projects as a testimony of Emerson Climate Technologies’ capability in providing energy efficient solutions for a broad range of air-conditioning applications”, he added.

Expressing gratitude for the overwhelming industry support received for The Emerson Cup awards over the past six years, Mr. Sridar Narayanswami – Vice President & Managing Director form Emerson Climate Technologies (India) Ltd., also present on the occasion, said “Emerson is very proud to have the opportunity of being part of an industry that includes developers, architects, consulting engineers and OEMs, who are taking the lead to create a more sustainable future. The Emerson Cup plays an important role in encouraging energy efficient development, creativity and technology leadership at all levels of our industry in India. The Emerson Cup now is truly fulfilling our vision of ‘Innovations in Climate Technologies’.”

The Emerson Cup 2013 had a distinguished panel of highly regarded specialists from the HVAC industry who evaluated all the entries independently and selected the winners.

of the black marketeers across the country belonged to the Bharatiya Janata Party. He said FDI in retail was important as one of the reasons for current an economic crisis was that the foreign investment has gone down.

NCP to take call on ties with TMC The Nationalist Congress Party (NCP) — an ally of the UPA government — will soon take a call on its stand on the ruling Trinamool Congress in West Bengal. “We have supported different secular parties in different states. In the last election, the Congress and TMC were allies. But they parted ways. We support the UPA government at the Centre, but will have to decide on our stand on the TMC government. We have convened a meeting next month where we will discuss the issue,” NCP leader Tariq Anwar said.

Beverages & Food Processing Times - November - I - 2013

Food Processing News

FDA seeks to ban trans fats in processed foods due to health risks

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he U.S. Food and Drug Administration proposed banning artificial trans fats in processed food ranging from cookies to frozen pizza, citing the risk of heart disease.

Partially hydrogenated oils, the primary dietary source of the fats, have been shown to raise “bad” cholesterol. Reducing the use of trans fats could prevent 20,000 heart attacks and 7,000 deaths from heart disease a year, the FDA said.

“While consumption of potentially harmful artificial trans fat has declined over the last two decades in the United States, current intake remains a significant public health concern,” FDA Commissioner Margaret Hamburg said.

Public health advocates welcomed the move.

“Artificial trans fat is a uniquely powerful promoter of heart disease, and today’s announcement will hasten its eventual disappearance

from the food supply,” said Michael Jacobson, executive director of the advocacy group Center for Science in the Public Interest.

The FDA’s proposal is not the first public effort to ban trans fats. New York City banned the use of trans fats in restaurants, including their use for deep-frying foods, and many restaurants and fast food chains, including McDonald’s Corp., have eliminated their use.

Some European countries have also taken steps. Denmark, Switzerland and Iceland regulate the sale of many foods containing trans fats.

Products that still contain trans fats include some varieties of crackers, refrigerated dough, coffee creamers and ready-to-use frosting, among others. Some products will be harder to reformulate than others, FDA officials said.

“We know that technically this is not an insoluble problem,” Hamburg told reporters on a conference call,

adding that the use of trans fats has declined dramatically since 2006, when the agency required that trans fat levels be disclosed on package labels.

According to the Grocery Manufacturers Association, food manufacturers have voluntarily lowered the amounts of trans fats in their food products by more than 73 percent since 2005, in part by reformulating products. The FDA said the average daily intake of trans fats by Americans fell from 4.6 grams a day in 2003 to 1 gram in 2012.

“Trans fats that are not naturally occurring have been drastically reduced,” the Grocery Manufacturers said. “We look forward to working with the FDA to better understand their concerns and how our industry can better serve consumers.”

It was unclear which companies would be hit hardest, or what the total cost will be, but many products well known to U.S. consumers are likely to be affected.

Among products singled out by the Center for Science in the Public Interest were various Marie Callender’s pies, made by ConAgra Foods Inc; Diamond Foods’ Pop Secret microwave popcorn; and cinnamon rolls from Pillsbury Co, owned by General Mills.

“We believe we have been and continue to be leaders in making good-for-you food, and we took steps

to remove partially hydrogenated oils from many foods in our portfolio years ago, including moving Orville Redenbacher’s popcorn to zeo grams trans fat per serving. We look forward to learning more about the FDA proposal,” ConAgra said in a statement.

Diamond Foods said Pop Secret offers products that are trans fatfree.

“On behalf of the Pop Secret brand, we at Diamond Foods are currently reviewing the FDA’s announcement regarding trans fats. Pop Secret currently offers products that are free of trans fats; the product ingredients are on Pop Secret labels. Consumers can make a choice of which products they select,” Diamond Foods said.

General Mills representatives did not respond immediately to a request for comment.

Richard Galloway, president of industry consulting firm Galloway and Associates and a 25-year veteran of the soy-processing industry, said switching formulations is costly and time consuming.

In general, “food companies take about two years from the time they are introduced to an alternative ingredient until they can commit to a switchover,” Galloway said.

Hydrogenation is a chemical process that converts liquid vegetable oils into solid or semi-solid fats. Partially hydrogenated oils extend the shelf life of foods, and certain types of popcorn, fish sticks, pies, donuts and pizza depend on trans fats for their taste and texture.

Coming up with alternative recipes for products that contain trans fats

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will largely be a matter of trial and error, industry experts say. Palm kernel oil, which is solid at room temperature and has become a popular substitute for trans fats, might work in some cases but some products might have to be dropped.

“If this rule becomes final the impact to companies will include the cost of finding an alternative to trans fats,” said Justin Prochnow, a lawyer with Greenberg Traurig LLP who advises food companies on FDA-related matters.

At the other end of the food chain, the American Soybean Association said that seed and technology companies have developed soybean varieties rich in high oleic fatty acids that eliminate the need for partial hydrogenation. “Significant quantities” of such high oleic soybean oil should be in the marketplace by 2016, the group said.

The FDA’s proposal is subject to a 60-day public comment period in which food companies are expected to outline how long they expect it to take them to reformulate products.

If the proposal becomes final, partially hydrogenated oils would be considered food additives and would not be allowed in food unless authorized by health regulators. The ruling would not affect trans fat that occur naturally in small amounts in certain meat and dairy products.

Companies wishing to include trans fats in their products would have to meet the safety standards applied to food additives and prove with reasonable certainty that they do not cause harm.

Beverages & Food Processing Times - November - I - 2013

Almost 2 bn tonne of food produced by us is wasted, says report

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s much as 40% of India’s fruits and vegetables and roughly 22% of wheat are lost annually due to poor cold storage facilities and infrastructural bottlenecks, according to a study done by a UK-based institute.

A whopping 1.2-2 billion tonne of food items, or 30-50% of total production, is lost each year, said the report titled ‘Global Food: Waste Not, Want Not’ by the Institution of Mechanical Engineers.

While any wastage can potentially drive up food prices, they also pressure resources such as land and water due to a growing demand for food due to burgeoning population.

“The reasons for this situation range from poor engineering and agricultural practices, inadequate transport and storage infrastructure to supermarkets demanding cosmetically perfect food stuffs and encouraging consumers to overbuy through sales promotion offers,” said Tim Fox, the head of energy and environment at the Institution of Mechanical Engineers. ‘‘This is food that could be used to feed the world’s growing population – as well as the nearly one billion people in hunger today. It is also an unnecessary waste of land, water and energy resources that were used in the production, processing and distribution of this food,’’ he added.

India’s unacceptably high level of child malnutrition, which Prime Minister Manmohan Singh has termed a national shame, and a poor show in the global hunger index have put pressure on the

government to work towards maximising farm productivity and improving supplies.

Despite the economy tripling in size between 1990 and 2005 to become Asia’s third largest, 42% of children under five years are underweight – nearly double the rate of sub-Saharan Africa, showed the 2011 Hunger and Malnutrition survey conducted by Nandi Foundation.

With the United Nations forecasting an additional three billion people on earth by the end of the century, judicious use of resources and handling the problems of wastages are the need of the hour.

Losses of rice in Southeast Asian nations can range from 37% to 80% of production, depending on the stage of development, totalling around 180 million tonne a year, the report said.

Moreover, 30-50% of food purchased by consumers is thrown away at home in developed nations.

Similarly, the demand for water to produce food items is expected to rise to 10–13 trillion cubic meters a year by 2050, 2.5 to 3.5 times than the total human use of fresh water now and could lead to dangerous water shortages across the globe, report said. About 550 billion cubic meters of water is wasted globally in growing crops that never reach the consumer, the report said.

There is the potential to provide 60-100% more food by eliminating losses and wastages while freeing up land, energy and water resources, the report said.

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News

Mother Dairy offers gulab jamuns

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ilk and dairy products brand Mother Dairy has added ‘gulab jamuns’ prepared with ‘khoya’ and ‘desi ghee’ to its traditional sweets range for the Diwali season.

The brand entered the business vertical of traditional sweets with milk cake last year.

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In addition to these two sweets, it also offersassorted sweets like ‘doda barfi’, ‘kaju katli’ and ‘kaju pista’ roll.

“Our sweets were well accepted for purity, taste and quality and so this Diwali we are launching gulab jamuns made of real khoya and prepared in desi ghee. Currently, our sweets range is available in northern markets but in future, we look forward to adding more variants and extending to new geographies,” Subhashis Basu, Business Head, Dairy Products, Mother Dairy Fruit and Vegetable Pvt. Ltd., said in a statement.

The price for one kg gulab jamun is Rs.190.

Beverages & Food Processing Times - November - I - 2013

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Agilent Technologies inaugurates CrossLab at its Manesar Facility

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gilent Technologies, a world leader in test and measurement today launched, Agilent CrossLab Laboratory at its Manesar campus.

This initiate will further strengthen the company’s CrossLab Enterprise Services, a synchronized laboratory solution by Agilent Technologies, a service model for all instruments regardless of the brand.

CrossLab Laboratory is an Investment done by Agilent Technologies to further strengthen the CrossLab Services initiative started in India 3 years back for providing comprehensive Service support to analytical instrument’s from various manufacturers’ which is used in Pharma, Biotech, Food , Environmental industries across India. This Laboratory will help increasing the capability of Agilent Service Engineering Team with hands on training on Analytical

instruments from various manufacturers and there by developing Services protocol to provide comprehensive solution to

their customers.

Commenting on the inauguration of CrossLab Dr. Siva Kumar Pasupathi, Country Head, Life Sciences and Chemical Analysis Unit, Agilent Technologies said “We are extremely proud of our CrossLab Laboratory which offers industry’s best facilities to our customers. We understand and recognize that laboratories are often equipped with instruments from a range of vendors. Agilent CrossLab will enable simplification product selections and purchase for our customer. Apart from that, this initiative will also streamline their workday, and improve their overall productivity”.

Mr. Luca Geretto EMEA & India Service Sales Manager, Agilent Technologies said “With Agilent CrossLab Services customers can reach the highest level of productivity. Customer can rely on one highly qualified engineer, who

understands their work flow, goals to keep all instruments performing at maximum capacity.”

Dr. Puran Lal Sahu, Associate Director AR &D, of a leading Pharmaceutical organization in India said “We have adopted Agilent Technologies CrossLab Since the last three years and we are extremely happy with the same.

With CrossLab Services we can now focus on our job and the services of Analytical Instruments is looked after by Agilent Technologies.

We are getting more options, best products and delivery through such a support.”

Traditional service models are more expensive, involve multiple points of contact with different vendors, and require in-house metrology teams to remain current on all the instrumentation. Agilent CrossLab Enterprise Services delivers solutions that help improve results, reduce costs, and raise productivity.

Agilent CrossLab delivers to its customers 1. Worldwide technical and product selection assistance from experts 2. Ordering convenience by reducing the number of suppliers 3. Prompt delivery through an unparallel global logistic

network 4. High- quality supplies, backed by more than 40 years of chromatography experience 5. Compatibility of non- Agilent instruments.

Core benefits of Agilent CrossLab • Comprehensive Support – From start to finish, Agilent CrossLab will take full ownership of your instrument needs.

• Maximum Instrument Uptime – Scheduled maintenance and qualifications, onsite inventory of parts, and an onsite engineer will make sure the systems stay up and running, and are serviced as quickly as possible.

• Fast Response – The onsite engineer can address service issues immediately, minimizing instrument downtime and workflow disruptions.

• Extended Instrument Life – Agilent consistently delivers high-quality maintenance and repair services using genuine Agilent CrossLab parts, Agilent Certified Aftermarket parts, and OEM parts to help ensure longlasting performance.

• Cost Control – Agilent helps customer to avoid costly workflow disruptions by minimizing downtime, extending instrument life, and reducing your administrative burden so that lab personnel can focus on generating results.

• Increased Productivity –

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Agilent works collaboratively with customers to deliver labwide strategies, engage in lifecycle and asset management, and utilize reporting tools to optimize your lab’s productivity.

Streamlined Protocols – Reliable, whole-system service protocols and checklists ensure consistent, high-quality service.

Insightful Reports – Using analytical tools and industry know-how, Agilent offers a suite of data-driven reports to help you monitor lab performance, plan lab asset technology migration and manage asset life cycle.

Consistent Levels of Service – Agilent protocols, scope of work, and checklists all ensure that customer will consistently receive the same high level of service on all your instruments.

Method Development/ Validation Support – Agilent partners with customers to assist with method development and offers validation support to ensure the success of the next project.

Education and Training – Agilent offers extensive continuing education and training opportunities. With classes and courses that are provided online, at an Agilent site, or in your lab, we have a program to meet your needs

Find the best solution from multiple choices

ISHIDA INDIA PVT. LTD., 382, Ground Floor, Udyog Vihar, Phase-II, Gurgaon 122 016. Haryana.

Tel: +91 - 124 - 3854392, Fax: +91 - 124 - 3854393 www.ishidaindia.com E-mail: sales@ishidaindia.co.in

EDITOR Firoz H Naqvi

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Marketing & Circulation Office: 301-A, Diamond Kiran, Shrikant Dharve Marg, Naya Nagar Circle, Mira Rd (E), Mumbai-401107, T:+91-22-28555069, E:info@timesinfomedia.com, W:www.timesinfomedi.com Printed, Published By- Firoz Haider Naqvi, RNI no.-MHBIL05093/13/1/2007, Printed at Roller Act Press Services, C-163, Ground Floor, Naraina Industrial Area, Phase-1, New Delhi-110028, Reg Office: 103, Amar Jyot, Pooja Nagar, Mira Rd (E), Thane-401107, Delhi Office: F14/1, Shahin Baugh, Kalandi Kunj Rd, New Delhi-110025