Beverages & Food Processing Times December 2014 by Advance Info Media

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Indian food processing industry will grow @ 10 percent-Sharad Jaipuria

Mofpi Working on Separate GST For Agri & Horti Sec., Says Secretary, Siraj Husain

h e Ministr y o f F o o d Processing Industries is working out on a separate GST regime for the food, agri and horticulture products in consultation with its all stakeholders in government and non-governmental sector. The aforesaid indication was delivered by the Secretary, Ministry of Food Processing Industries, Mr. Siraj Hussain at an International Conference on India Farm 2 Fork 2014 under aegis of PHD Chamber of Commerce and Industry in New Delhi. As soon as the proposed consultations were over, the Ministry would forward its recommendations to the Finance Ministry, incorporating with them the tax concessions and incentives required to promote the agri and horti sector so that some of them are reflected in the Budget proposals for fiscal 201516, said Mr. Hussain. Elaborating on its suggestion for creation of ecommerce department, Mr. Hussain said, “currently there is no such a thing with the government though e-commerce activities have begun to flourish in other sectors barring food processing in which corporate entry has yet to happen for e-commerce trade for processed food's retailing especially in its non-perishable segment. This issue needs to be taken up by leading

ood processing sector of India is likely to grow at the rate of over 10 per cent from 2015 onwards on back of increase in investment from private sector, according to a study. Currently, the sector is growing at an average rate of 8.4 per cent.a

Chambers of Commerce and Industry such as PHD Chamber so that a proposed department is created to facilitate e-commerce activities in processed food retailing”. The Minister of State for Agriculture, Dr. Sanjeev Kumar Balyan who while inaugurating the conference said, “the government is working on a comprehensive national insurance policy for agriculture sector to shield the farming community against all mis-fortune of their post harvest losses relating to all food and grain products including the damage of crops on account of attacks from pests and other such elements”. Dr. Balyan, however, did not indicate by when the proposed policy would be unveiled but alluded that its salient features be rolled out in the forthcoming budget in which the focus would be for accelerated agri and horticulture production as well as increased yield of food grains including fruit and vegetables also.

The study jointly conducted by PHD Chamber and Technopak said the private sector is committed to invest in the expansion of their manufacturing units in the food processing sector, especially after the call of 'Make in India', given by Prime Minister Narendra Modi. "Food processing industry is likely to register a consistent growth rate of over 10 per cent from 2015 onwards in view of its emerging potential, in which the private sector in this segment has already begun to invest to realize its impending

worth," the study added. The study titled as 'India : World's Emerging Food Leader' have projected that its food processing sector, which ranks at ﬁfth presently world over in terms of production, growth, consumption and export is likely to reach at USD 194 billion by end of 2015. Releasing its ﬁndings, PHD Chamber President Sharad Jaipuria said, "On domestic front, demand for processed food and food products comprise a third of total demand. The growing population along with desire for convenience would drive the demand for processed food." In 2012-13, India registered a 63 per cent growth in the exports of agricultural products and processing foods which would naturally

multiply in times to come, he added.

In his welcome remarks, President of the Chamber Mr. Sharad Jaipuria said that time has come when policy makers should treat agriculture with preferential treatment so that its growth is revived from currently estimated 3.4 per cent per annum to a higher level and the contribution of agri sector to national GDP is accelerated beyond 14 per cent as of now. Among others who participated in the conference comprised the Managing Director of National Horticulture Board Mr. Rajendra Tiwari; Vice Chancellor NIFTEM Dr. Ajit Kumar; President Technopak Ms. Saloni Nangia and Chairman Agribusiness Committee, PHD Chamber Mr. N M Kejriwal.

Manpasand Beverages ﬁles for Rs 400 Cr IPO Vadodara-based fruit drinks maker and marketer Manpasand Beverages Pvt Ltd has ﬁled its draft red herring prospectus (DRHP) with market regulator SEBI to raise as much as Rs 400 crore ($65 million) through its initial public offer (IPO).

ﬁling for IPOs with the positive turn of the primary market since April this year count a PE ﬁrm as a shareholder.

Manpasand Beverages essentially manufactures mango juices and is known for its brand Mango Sip. It has a strong presence in tier II and rural markets in India and besides Mango Sip also sells products under the Manpasand ORS and Fruits Up brands. It has three manufacturing facilities in Vadodara, Banaras and Dehradun. It is targeting to achieve revenue of Rs 500 crore in the current financial year against nearly Rs 300 crore in the year ended March 31, 2014. Majority of its revenue comes from small towns and rural markets. This would mark another public float of a PE backed company this year. A majority of firms

In particular, it would also mark another of SAIF Partners' firm to go public. The venture and growth capital investment firm has been particularly successful in taking a clutch of its portfolio firms to the public market. These include MakeMyTrip, Just Dial, Speciality Restaurants and Lovable Lingerie.

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Vol. 7, Issue 07 - December - 2014

FOOD PROCESSING NEWS

EU team to inspect sesame seed-processing units

fter indicating to revoke the import ban on mangoes and four other farm produce from India, a team of European experts will visit the country next week to inspect pesticide levels in sesame seeds used in confectionery. The experts are likely to visit India starting 9 December, a government ofﬁcial said. “They want to inspect our processing units and laboratories, mostly in Gujarat and Maharashtra, to test the phytosanitar

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EXCLUSIVE RANGE OF EMULCO FLAVOURS

y certification system,” he said, requesting anonymity. “It is a good thing they are coming. We are confident of the facilities available.” Phytosanitary refers to the health of plants, especially with respect to the requirements of international trade. The European Union (EU) and Japan could provide a big business opportunity for sesame seed producers in India, the official said. “Japan and the EU put together provide a market of around $600 million for sesame seeds. Japan wants organic sesame seeds while the EU wants pest-free sesame seeds. Japan is currently saying that sesame seeds produced by India has too much pesticides. So they don't want to import from India. But the same Indian sesame seed is going to Japan through Vietnam and South Korea and they have no problem with that,” he said. “If the EU buys from us, then Japan will be forced to open up their market. So, it is in our interest that the EU officials are visiting India.” Citing the presence of pesticides, the EU had banned the import of Alphonso mangoes, brinjal, taro, bitter gourd and snake gourd from 1 May to December 2015. The decision by the grouping's standing committee on plant health came after 207 consignments of fruits and vegetables from India imported into the EU in 2013 were found to be contaminated by pests, including fruit flies, the Press Trust of India had reported from London. Although the prohibited commodities represent less than 5% of fresh fruits and vegetables exported to the EU from India, the potential introduction of new pests could pose a threat to EU agriculture and production, the committee noted. The UK's department for environment, food and rural affairs, which backs the ban, said it was necessary because pests could threaten the country's £321 million salad crop industry of tomato and cucumber. The UK imports nearly 16 million mangoes from India and the market for the fruit is worth nearly £6 million a year. After a strong protest by India, a team of experts from the Food and Veterinary Office of the EU visited Indian facilities in September. The EU experts made a favourable report and are expected to revoke the ban soon, the official said. “They wrote to us saying they are satisfied with the visit with the inspection and packaging facilities. The decision has not yet come,” he said. “Now we have made it mandatory that every export of food product to the EU will go through a standard inspection process.” Sesame seed is a high-value cash crop that is used in bread and cakes in Europe. In Japan, the seed is added to salads and baked snacks. Japan is the world's largest sesame seed importer. India exported 299,482 tonnes of sesame seeds in 2013-14 against 389,153 tonnes in 2012-13, the council's data shows.

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Danone is furious over Russia's alleged slander of its products

anone says it is "deeply insulted" and is demanding that Russia's agriculture minister retract alleged "slanderous" statements he made about it and a unit of PepsiCo. At issue are comments earlier this week by Nikolai Fyodorov that Danone and PepsiCo's Wimm-Bill-Dann dairy line were adulterating the milk they sold in Russia with plant oils. Fyodorov reportedly claimed that only 20% of the ingredients in the milk sold in Russia by the two Western companies were from dairy. Danone, which purchased the Russia-based Unimilk company in 2010, and Wimm-Bill-Dann are the largest buyers of raw milk in Russia. PepsiCo, on the other hand, hasn't issued a response yet.

Matrix Flavours & Fragrances (India) Pvt . Ltd Block No.32, Kinfra Small Industries Park, Nellad P.O.Muvattupuzha, Kerala, India Pin:686 661 Tel:0484-2597700 E-mail:info@matrix.net.my

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Vol. 7, Issue 07 - December - 2014

he Tamil Nadu government has sought technical assistance from Australia to promote its dairy sector. The state administration held talks with senior representatives from Australia and also for cooperation with the country in the area of agriculture and allied activities, besides greater collaboration in research and development in renewable energy, bio-technology and sports medicine. Patrick Suckling, Australian high commissioner in India, met Tamil Nadu chief minister O Panneerselvam and had discussions on joint cooperation in various sectors. During the meeting, the chief minister stated there was considerable potential for cooperation with Australia in the area of agriculture and allied activities, fisheries and deep-sea fishing. Dairy is another sector which the Tamil Nadu government is strongly encouraging through several initiatives including a flagship scheme for free distribution of milch animals. Technical assistance from Australia to further promote the dairy sector was also sought, stated a state government release.

DAIRY NEWS

emerging areas like renewable e n e r g y, b i o technology and sports medicine. It also explored possible areas of collaboration in infrastructure development, the release stated. The chief minister also invited investors and the b u s i n e s s community from Australia to participate in the Global Investors Meet to be held here on May 23-24.

In the education sector, the chief minister called for a structured arrangement to enable students from poorer families to beneﬁt from global exposure and expressed conﬁdence that Australia with its egalitarian ethos would welcome such an initiative. The chief minister also called for greater collaboration in research and development in

Danone is considering a sale of its 20% stake in Japan's Yakult, according to Bloomberg News. Such a deal could yield as much as $2 billion for the French company. Danone is said to be looking to raise cash in order to fund acquisitions. One possible target is U.S.-based Mead Johnson Nutrition, a maker of infant formula. Danone has held a position i n Ya k u l t , which makes fermented probiotic drinks, for a decade. News of Danone's possible divestment comes six months after Ya k u l t announced its ﬁrst major investment here in the States - a

n e w squarei n

76,800 foot facility California.

Apparently that plant isn't enough to convince Danone to stick with Yakult. But still, why would anyone want to sell a piece of what is arguably the coolest company in the business? Yakult owns a professional baseball team.

Beverages & Food Processing Times

Vol. 7, Issue 07 - December - 2014

FOOD PROCESSING NEWS

Odisha govt. thinks the proposed Agri and food processing policy will rejuvenate the sector in the state

or the growth and development of agribusiness and food processing industry in Odisha, the state government plans to formulate 'Odisha Agribusiness and Food Processing Policy'. In a draft Vision 2025 document prepared on food processing in Odisha, the government has stated that the proposed policy will help promote/energise the sector in the state. The ﬁscal beneﬁts proposed in the draft vision document are down ward revision of VAT (value added tax) imposed on agricultural and processed food items to make the sector competitive, abolition of entry tax in line with High Court rulings of Kerala, Rajasthan and others states, lowering per unit power cost on supplies to

agribusiness and food processing establishments like cold storages, processing units by amending state electricity regulations among others. The ofﬁce of the state mission director of National Mission on Food Processing, which has prepared the draft paper, has proposed for declaration of agribusiness and food processing industry as a priority sector. For achieving the target, both short term and medium to long term interventions have been suggested in the draft paper. Among others, creation of directorate of agribusiness and food processing is identiﬁed as one of the major interventions

of the state government. The proposed directorate, to be created within the industries department, will act as a single window for catalysing the agribusiness and food processing industry in the state. The directorate will be headed by an ofﬁcer in the rank of director who will be assisted by technical experts and ofﬁcials drawn from the agriculture marketing directorate and MSME (micro small and medium enterprises) or industry departments to ensure development of the sector in Odisha.

It may be noted that a dedicated policy for food processing industries called “Odisha Food Processing Policy 2013” is already in place. The document envisions a well developed agribusiness infrastructure with market linkages to reduce the high levels of wastages, which are currently pegged in the range of 30-35 per cent of the production. The mission director has sought views of the stakeholders of the sector for inclusion in draft document.

MOFPI invest in FPIs and Food Parks

n order to encourage food processing sector in the country, Ministry of Food Processing Industries had launched a Centrally Sponsored Scheme - National Mission on Food Processing (NMFP) during 12th Five Year Plan. Under the Scheme for Technology Upgradation/ Establishment/ Modernization of Food Processing Industries of NMFP, ﬁnancial assistance is provided to the entrepreneurs to set up food processing units in the country. Assistance is also available for modernization,

up-gradation and expansion of the existing food processing industries. Under the scheme, financial assistance in the form of grant-in-aid to entrepreneurs is extended @ 25% of the cost of Plant & Machinery and Technical Civil Works subject to a maximum of Rs. 50.00 lakhs in general areas & @33.33% subject to a maximum of Rs. 75.00 lakhs in difficult areas and 50% subject to maximum of Rs. 100.00 lakhs in North Eastern States including Sikkim. The Ministry is also implementing the Central Sector Scheme of Mega Food Parks to provide modern infrastructure for food processing units in the country. The pattern of assistance is 50% of the eligible project cost in general areas and 75% in difficult areas subject to a maximum of Rs.50.00 crore per project. On an average, an investment of Rs. 120 crore is made in a Mega Food Park project which creates infrastructure for setting up of 30-35 processing units. The Government has so far approved 42 Mega Food Parks projects, out of which 25 projects are under various stages of implementation. The proposal for setting up of Mega Food Parks are invited by the Ministry through Expression of Interest (EOI) and projects are selected on merit, based on the parameters laid down in the Scheme guidelines. State-wise targets for setting up Mega Food Parks are not fixed. Ministry had invited Expression of Interest on 10.02.2014 for selection of Mega Food Parks projects against the vacant slots. The last date of submission of EOI was extended to 31.07.2014. In response to this EOI, a total 72 proposals have been received which are being appraised in the Ministry.

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Beverages & Food Processing Times

Vol. 7, Issue 07 - December - 2014

BISCUITS NEWS

the world, manufacturing and marketing food and beverage products to consumers in approximately 165 countries. Its product portfolio includes biscuits, chocolates, gun & candy, powdered beverages, cheese and coffee. The $9bn brand portfolio includes Cadbury,

The plant will be built in the International Investment Park and will produce biscuits for six brands, including Oreo, Ritz, TUC, Barni, Belvita and Prince. It is expected to generate 300 direct jobs during the initial years and will further create 1,000 more indirect jobs. It will also create hundreds of direct and thousands of indirect jobs in the next two decades, depending upon the potential demand in the Middle East and African regions. "The project is part of Mondelez's ongoing

Cadbury Dairy Milk and Milka chocolate, Jacobs coffee, LU, Nabisco and Oreo biscuits, Tang powdered beverages and Trident gum.

n recent years, the biscuit industry in India has grown rapidly. Biscuits have emerged as a beneﬁciary of the economic growth across the country as a whole, with branded biscuits in particular becoming a highly desired product. Undoubtedly, biscuits are a serious business in India, even occasionally mixing with politics. Just this week, in a proﬁle of Prime Minister Narendra Modi, India's Business Standard remarked that the Prime Minister is "not known to have shown any preferences in biscuits". The website reports that this is in contrast to his predecessor, Manmohan Singh, who had a Marie biscuit with tea in the evenings. The biscuit market in India is also getting busier. Currently, in addition to large, medium and small-scale brands, it is estimated that around 30,000 small and tiny bakeries are spread across the country, all vying to take the biggest share of the Indian population's increasing spending power. But big companies remain to be reckoned with. In August this year, a press release from the UK Government announced that United Biscuits was one of several British businesses to embark on new trade deals with India. The August announcement explained that United Biscuits would increase investment in its India operation from £30 to £50 million, and follows the success of United Biscuits' McVities brand Hobnobs and Digestives in the country.

supply-chain reinvention plan to cater to the growing demand for biscuits in the Middle East and Africa.” The project is part of Mondelez's ongoing supplychain reinvention plan to cater to the growing demand for biscuits in the Middle East and Africa. It is claimed to become the company's most advanced manufacturing plant in the Middle East and Africa. The biscuit manufacturing plant will be built in a 250,000m² site located 3km from the existing Kraft Cheese and Tang powdered-beverage plant at the International Investment Park, which is located on the outskirts of the capital city of Manama. Bahrain has been preferred by Mondelez for the establishment of the new plant as it has good logistics, availability of skilled workforce and business-friendly environment. The necessary land for the project is reclaimed by the Bahrain Government and will be made available by December 2014. The full scale commercial production of the plant is scheduled to begin in early 2016. For the ﬁrst two to three years, the plant will operate four biscuit manufacturing lines and will produce nearly 90,000t of biscuits a year. The biscuits will be supplied to the entire Middle East and Africa regions, which are currently being served by the company's plant in Eastern Saudi Arabia. The existing plant has reached its maximum capacity and has no scope for further expansion. Mondelez International has designed a supplychain renovation plan through which it is anticipated to offer $3bn gross productivity savings, $1.5bn of net savings and $1bn of incremental cash over the next three years. These savings will help the company drive signiﬁcant improvements in the base operating income margin. Mondelez International, formerly Kraft Foods, has been operating in the Middle East since 1912. The company's regional hub located in Dubai manages operations, sales and distribution in over 15 nations in the region. The company employs more than 1,500 people from 40 nationalities, including Bahrain, Saudi Arabia and Pakistan. Oreo biscuits and Tang powdered beverages are some of Mondelez's best-selling products in the region. Mondelez is one of the largest snack companies in

Beverages & Food Processing Times

Deputy Prime Minister Nick Clegg commented, "From McVities Digestives to Horlicks and Smirnoff, India's 1.2 billion consumers are increasingly falling in love with British favourites." In 2006, United Biscuits had no factories outside of Europe. Its production facilities outside of this area now include two factories in Nigeria, one in Saudi Arabia and one in India. The company's production in India focuses on smaller packs of digestive biscuits, meaning that it continues to export larger (250g and 400g) biscuit packs from the UK. Earlier this year, Chief Executive Ofﬁcer of United Biscuits' International Operations Jeff van der Eems told D irector magazine that international business is expected to generate 20% of the company's total revenue in 2014. This is an increase from 5% in 2006. In early November, it was announced that United Biscuits has been bought by Turkish food manufacturer Yildiz Holding in a deal reportedly worth more than £2 billion. In acquiring United Biscuits, Yildiz beat competition from US-based company Kellogg's and Burton's Biscuits, owned by Ontario Teachers' Pension Plan in Canada. The extent to which India will be a focus for growth under the new arrangement remains to be seen, although the market for biscuits in this country will continue to barrel ahead.

Vol. 7, Issue 07 - December - 2014

ne of t h e reaso ns why the f o o d processing sector in India i s n o t growing at a rapid pace is the myth that processed foods are for the elite. This was stated by food processing industries minister Harsimrat Kaur Badal, who added that it should be shunned. She added, “There is a misconception among people that processed foods are not for the common man. The growth of this sector in the country is linked to and adversely affected by this myth, which acts as a deterrent to those who wish to set up processed food ventures.” She met the country's vice-president Hamid Ansari and Lok Sabha speaker Sumitra Mahajan to discuss the problems faced by the industry and seek solutions to resolve them. One of the key issues was product approvals. Another problem ailing the industry was the fact that various products lay at the ports, increasing the burden on the pockets of small investors who are keen to set up food processing units. The minister said her ministry was taking a number of initiatives, about which she provided details. She added that there was a plan to increase the farmers' yield by bringing food processing to the farm level.

ompetition Commission has cleared CocaCola Company's proposed deal with USbased Monster Beverage Corp in the energy drinks market. processing, Badal said, “The sector is going to boom in the coming years. The use of agro technology is one of prime minister Narendra Modi's focus areas.” “I had asked my ministry's think-tank to prepare a national food map that would showcase all the agriculture and livestock produce and food processing potential states and areas, so that we can know our strengths and weaknesses and tackle them with suitable interventions,” she added. Badal said, “My main focus would be to install food processing growth engines at the village farm level, so that agriculture gets a boost and the wastage is reduced.” “Apart from focussing on reducing the wastage and losses of fruit and vegetables, our aim is to optimise the yield per acreage of land by inducting better technology and simultaneously to provide farmers a double beneﬁt,” she added. “Our ministry also wants to develop special food processing zones across the country, including the North-Eastern states. I am also focussing on small-scale food processing units for women, to make them ﬁnancially self-reliant,” Badal said.

The deal involves Coca-Cola, its group ﬁrm European Refreshments, Monster and its subsidiary New Laser Corp (NewCo). Besides, NewCo's subsidiary New Laser Merger Corp is part of the proposed combination.

Among others, New Laser Merger Corp would be merged with Monster. In India, Coca-Cola has insigniﬁcant presence in the energy drink segment while Monster has minimal presence with some of its energy drink brands that are imported. "The parties have insigniﬁcant presence in this (energy drinks) segment, in India. It is also

Clearing the proposed combination, that pertains to non- alcoholic beverages, the Commission said the deal is not likely to have an appreciable adverse impact on competition in the country. Under the deal, Coca-Cola -directly and through European Refreshments -- would acquire "one share less than 16.666 per cent of the common stock of NewCo". Then, energy drinks and non-energy drinks portfolio would be re-organised between CocaCola and Monster. This would be done in such a way that NewCo would acquire energy drinks assets from Coca-Cola and some of its subsidiaries while Coca- Cola would buy some non-energy drinks assets from Monster.

observed that post combination, the vertical arrangements between the parties is not likely to result in the foreclosure of competition in view of their insigniﬁcant presence in the energy drink segment, in India," the Competition Commission of India (CCI) said in its order dated November 10. US-based Monster Beverage Corp is mainly into the energy drink segment.

“We are laying more emphasis on special food processing units to impart skill development to augment skills and bring up a skilled workforce,” the minister added. “And for the same, state governments should support the Centre and do what must be done to create a food processing environment in the country. We also need to build a Brand India for processed food exports and state-speciﬁc brands for our domestic national markets, because apart from Brand India, we have a domestic market that we must tap,” she added.

etting up of mega food parks is the need of the hour to expand the scope of the food processing industry, an HSIIDC ofﬁcial

said.

processing sector Gokul Patnaik, Chairman Conferences - CII Agro Tech 2014 & Chairman, Global AgriSystems Pvt. Ltd said that processing can help the current wastages in the sector.

Commenting on the focus areas of food He said in India only 6-7 per cent of fruits are converted into processed foods whereas in other countries nearly 50 per cent of the fruits are processed. Rajesh Srivastava, Chairman & Managing Director, Rabo Equity Advisors said cold chain is a key component which is lacking in the food processing sector.

n a move to avoid real estate cost and increase proﬁtability, Yum! Restaurants, the owner of KFC brand is planning to sell its western India KFC business to one of its franchisees. Yum which also owns other brands like PizzaHut

and Taco Bell is looking at doing away with the rent and other overhead expenses and focus on customer relationship and branding. In the country, KFC has a total of 350 outlets run partly by Yum and partly by franchisees. Yum operates close to 18 outlets in the western region. Devyani Internationl owned by Ravi Jaipuria, is

the largest franchisee of Yum and runs close to 300 odd outlets of Pizza Hut and KFC in north and east. Other major franchisees is Dubai's Dodsal Group which was planning an exit from the QSR business and owns the franchisee rights for South and West India running six KFC quick service restaurants in Mumbai and Bangalore. Yum had reported its fourth straight drop in quarterly samestore sales in India in the JuneSeptember period at 4%. It is not only Yum that is being feeling the pressure but also others including Jubilant FoodWorks (JFL), (franchisee of Domino's Pizza and Dunkin' Donuts) had a 5.3% decline, Hardcastle (franchisee of McDonalds) had a 7.9% drop. As many feeling the pain, others are setting themselves up for the Indian market. Recently BurgerKinf entered India with Everstone. US based ice cream and QSR chain, Dairy Queen was looking for a partner to enter India. Crisil Research estimates the market to grow to INR 7,000 Cr by 2018 from the current INR 3,400 Cr.

"Food processing is one of the thrust areas of Haryana's industrial policy," Vineet Garg, Managing Diector of Haryana State Industrial & Infrastructure Development Corporation (HSIIDC), said. He said the state government has already set up parks at Saha and Rai and another one was in pipeline. He apprised the participants about the National Mission for Food Technology has been launched in the state and a grant of Rs 20 crore has also been released for cold chain. National Institute of Food Technology Entrepreneurship & Management ( NIFTEM) at Kundli, Sonepat, on latest food technology, is also an enabler for the sector growth in the state. Focus on DMIC corridor would give an opportunity for setting up more food parks and facilitating them through robust single window clearance, he added. Highlighting the importance of the food

Beverages & Food Processing Times

Elaborating on what the models of cold chain infrastructure, he said that power and skilled manpower is essential in strengthening the cold chain for the processed products. He added that the promising sub sectors within primary processing are dairy, basmati, nutraceuticals, animal feed additives, potato value chain and there is an opportunity in export market for buffalo meat and seafood . D V Pande, Chief General Manager, NABARD, shared the institutions focus on helping farmers organise themselves into farmer producer organisations. National Bank for Agriculture and Rural Development (NABARD) has received a provision of Rs 5,000 crore from the government of India to support small industries The organisation is also utilizing its efforts to strengthen the cold-storage mechanisms which will help in better storage of food products which can be processed further, he said. Also in its efforts to support expansion of the sector, NABARD is offering funds to support the setting up of food parks.

Vol. 7, Issue 07 - December - 2014

FOOD PROCESSING NEWS

referred policy option should be imposed on food processing sector, keeping GST rate not more than 4 percent and farm sector should be kept outside the scope of GST, said Sharad Jaipuria, President, PHD Chamber of Commerce and Industry. The likely implementation of GST at more than 20 percent on food

processing sector would not only impact the sector adversely but also hit the economic and social sentiments of the country, said Jaipuria. The food processing industry is still at a nascent stage of development in our country as only 2.2 percent of food output is processed in India as compared to 78 percent in Philippines, 65 percent in the USA and 23 percent in China. At this juncture, high rate of GST will slow down the growth trajectory of food processing sector in India. Further, as food comprise a major part of the Wholesale Price Index (WPI) which is nearly 14.3 percent, an increase in tax on food items will adversely impact WPI leading to higher inflation in the country, he said. "We believe since food constitutes a large portion of the consumer basket of lower income households, any tax on food would be regressive in nature. Further, extending GST to food processing sector will also cause difficulty in view of the fact that production and distribution of food is largely unorganized in India," added Jaipuria. On global front, most of the countries tax food at a lower rate keeping in view the considerations of fairness and equity. Even in countries such as Canada, UK and Australia where food constitute a relatively small portion of the consumer basket, food is taxed at zero rate. While in some countries, food is taxed at a standard rate which is as low as 3 percent in Singapore and Japan at the inception of the GST. "Even in international jurisdictions, no distinction is drawn on the degree of processing of food. Hence, the benefit of lower or zero tax rates should also be extended to all food items in India regardless to degree of processing," he said. Going ahead, a lower GST on processed foods would benefit the society at large and benefit the growth of food processing industry in the country, added Jaipuria.

TR Foods Pvt. Ltd. (MTR), leading Indian breakfast mixes brand has launched yet another delicious offering for the Indian homemaker who is often battling the taste versus time dilemma in morning rush hour while trying to surprise her family at the breakfast table with healthy options. MTR's New Poha is a wholesome and mouth watering breakfast with delicious nuts and dry fruits like peanuts and raisins and a dash of lemon making it a tasty meal to start off the day with. This simple and quick innovation takes just 3 minutes to prepare and needs only hot water to be added. MTR Poha is available in two ﬂavours of Regular and Khatta Meetha. It is available in all leading stores in multiple cities across the country, conveniently priced at Rs 15 for single use pack (60gms) and Rs 35/ Rs 40 for 23 servings (180gm). Informing the media Vikran Sabherwal, VP Marketing, MTR Foods said "We've led the authentic Indian breakfast space for a while now and consumers love our South Indian breakfast options. With Poha which is one of the most loved Indian breakfast choices, we are broadening our cuisine offerings and thus reaching more and more Indian families." Our consumer tests have been very encouraging, consumers have loved MTR Poha and are delighted by the fact that it is ready in just 3 minutes. This launch is a further step in easing the home maker's variety versus time dilemma, added Sabherwal.

Beverages & Food Processing Times

Vol. 7, Issue 07 - December - 2014

AGRO NEWS

So far, about 350 FPOs have been set up across the country and another 500 are in the process of being formed, Sharma said.

ndian agriculture minister, Radha Mohan Singh held a review meeting in Mumbai with state government ofﬁcials of agriculture and animal husbandry department.

Tamil Nadu tops the list of States with 50 farmer producer companies, followed by Uttarakhand with 45, Telangana 44, Maharashtra and Madhya Pradesh 34 each, Uttar Pradesh 27, Assam 25, and Rajasthan and Gujarat with 22 each.

he process of organising small farmers into collectives such as producer companies or co-operatives is attracting the interest of foreign buyers – mainly those from Europe and the West Asia. “Large retail chains in Europe and West Asia are keen to source vegetables from farmer producer organisations (FPOs) here, provided they are offered guarantee on traceability issues,” said Pravesh Sharma, Managing Director of the Small Farmers Agri Business Consortium (SFAC) that is spearheading the creation of FPOs. Retail chains are keen to source green vegetables ranging from cabbage to okra and baby corn among others. “If all goes well, we should have some tie-ups in place by the next vegetable season in winter 2015, ” Sharma added. However, he declined to disclose the names of the foreign retail chains. This is a signiﬁcant development considering that the FPOs are in the nascent stage and is expected to give a further impetus to the creation of such collectives.

unjab government today said the restructuring of the Food Corporation of India (FCI) should ensure smooth procurement of crops and it should also beneﬁt

f a r m e r s

a n d

c o n s u m e r s .

It should be in such a manner that it should benefit both farmers and consumers besides ensuring flawless procurement and public distribution system (PDS)," Punjab Chief Minister Prakash Singh Badal placed his views before former union minister and senior BJP leader Shanta Kumar who is heading the committee for restructuring of FCI. The committee is mandated to give suggestions to reorient FCI's role and functions in MSP operations, storage and distribution of food grain and food security systems Taking part in the deliberations, the Chief Minister urged Shanta Kumar that the restructuring of country's premier food procurement agency should be done to eliminate difficulties and bottlenecks in way of smooth and timely procurement of food grains

Besides acting as aggregators of farm produce and helping establish market linkages with large buyers, FPOs are also seen as a potential vehicle to foster technology penetration, improve productivity and enable improved access to inputs such as seeds and fertilisers and services such as ﬁnancial and insurance among the farming communities. Apart from enabling the famers to leverage the market for better prices, FPOs also provide a window for channelising the funds under various schemes such as the ongoing Rashtriya Krishi Vikas Yojana. If the interest shown by European and West Asian retail chains fructiﬁes into a formal arrangement, the shipment of vegetables to these regions could see a pick up, once traceability issues are addressed. In the middle of this year, the EU banned import of four Indian vegetables – including eggplants (brinjals and gourds) along with mangoes on the grounds they contained harmful organisms. Even Saudi Arabia recently banned the import of Indian green chillies on the grounds of high pesticide residues. Exports of fresh vegetables from India, excluding onions, for the April-August period stood at 3.33 lakh tonnes, valued at Rs. 939 crore.

He recalled the signiﬁcant contribution of Punjab in national food security adding that agriculture was the lifeline of the state and also of nation. The Chief Minister suggested the committee that a mutually agreed Memorandum of Understanding (MoU) must be signed between the FCI and the state government well in advance of procurement season clearly stipulating obligations and rights of both the stakeholders in detail. Likewise, he also opined that the cost sheets should also reﬂect realistic and actual costs besides deputing separate staff for procurement and movement of grains. Badal said that the storage charges should be rational and FCI should procure its allotted share.

Mr Singh expressed his concern for the decreasing number of livestock population in the State as per the latest census and instructed government ofﬁcials to take quick action on dairy expansion and Gokul Mission activities in an area of about 2,000 acres in Aarey colony. Mr Singh discussed all the issues relating to agriculture and allied sectors and instructed state government ofﬁcials to give priority in providing soil health cards to all farmers in the next three years.

State government should speed upimplementation of schemes and send proposals to the government of India along with a utilisation certiﬁcate so that maximum earmarked funds may be allocated.

State government should come forward in making effective use of Kisan Vikas Kendra (KVK) (Farmers development Center) for extension work, Mr Singh stressed, and called upon each scientist to adopt a village for personally monitoring the extension activities.

Mr Singh also asked dairy cooperatives to submit projects for modernisation to the National Cooperative Development Corporation (NCDC). State government should ensure proper coordination with the National Fisheries Development Board (NFDB) so that funds worth $10 million allocated under this head may be fully utilised, Mr Singh said.

odrej Industries Ltd (GIL) may be looking to list its diversiﬁed agribusiness subsidiary Godrej Agrovet in which it holds 60.8% stake. "There is a possibility that we might list Godrej Agrovet in the next few years," Adi Godrej, chairman, Godrej Industries, said in the company's second-quarter earnings call, without specifying any timeline. Godrej Agrovet's current line of business includes animal feed, agri-inputs, poultry and palm oil. The management has not determined how it will go about the listing. "Most likely, it will be raising new capital. But it is too early to tell in which manner we would list it. Under the current regulations, we can list Godrej Agrovet with a 10% issue because it's a large size business. But we haven't determined how exactly we will go about it. That, if at all, will be done closer to the time of actual listing as and when it may be," he said. According to GIL, while its investment at cost in Godrej Agrovet was around Rs 144 crore for shareholding of 60.8%, the same would be currently valued at around Rs 2,000 crore. "Our calculations show that the value of the assets – if you break them down – in Godrej Industries is considerably higher than its market cap," said Godrej. Unlike many other holding companies, most of the investments Godrej Industries holds is in the listed company, hence it is very easy to ﬁnd the valuation.

He further said that the system of Minimum Support Price (MSP) must not be done away with abruptly until it introduces a self-sustaining mechanism of income support to the farmers. He urged the committee to strongly recommend state's case for allocating sufficient funds for agriculture diversification as the previous UPA government just sanctioned a peanut of Rs 500 crore, against Rs 5,000 crore sought by the state, for Punjab and Haryana of which the state was allotted merely Rs 225 crore. Shanta Kumar assured the Chief Minister that the committee would look into all the aspects and issues raised by the latter before taking a final decision. He said that the committee would give due weight age to the suggestion put forth by the various stakeholders to further strengthen and integrate the supply chain of food grains besides bringing far more transparency, efficiency in the procurement and PDS by the FCI.

The minister said that he wants the state government to ensure coordination between state agriculture universities, KVKs and government ofﬁcials. Mr Singh also suggested that a cow sanctuary project may be prepared on the same lines as in Madhya Pradesh.

ncepted in the year 2 0 0 2 , i n Coimbatore, South India, Spectra Plast has earned an enviable position in the industry a s a l e a d i n g manufacturer and exporter of conveyor components. Ram Kumar

We are one of the largest engineering plastic ﬁnished parts producer and our ability to deliver quality

Beverages & Food Processing Times

"Even Godrej Agrovet shares are worth a lot because just a two years ago a major deal was done with Temasek so people know the valuation of that holding," he said. In December 2012, Singapore-based investment firm Temasek – through a combination of primary and secondary investments – had acquired a 19.99% stake in Godrej Agrovet for about Rs 572 crore. The objective behind the fundraising, GIL then said, was to support its future expansion plans. For the second quarter fiscal 2015, Godrej Agrovet performed well despite challenges including volatile commodity prices and erratic weather conditions. While oil palm sales for the quarter ended September 30, 2014, were up 24% year on year, agri inputs rose increased 18% and animal feed sales grew 13% in the same period. According to Godrej, the animal feed, oil palm and agri-input businesses have shown significant growth and the company's strategy in the animal feed business of strengthening presence in cattle and layer feed segments is paying well. "The new shrimp and fish feed facility in Andhra Pradesh has commenced production which will strengthen our presence in this space. Our future prospects for our agri-business remains robust and I am confident that we will continue to deliver good results," he said. Analysts said Godrej Agrovet has grown 1215% despite adverse business conditions. Balram Yadav, managing director, Godrej Agrovet, said, "While we cannot promise 2530% growth, the business certainly can witness

products makes us a prominent exporter in the industry. Our range of products includes specialized conveyor components and customized engineering plastic machines components for various industries. Our experienced professionals and our in-house advanced technological set up have helped us to oﬀer our customers the perfec on they deserve and rely on. In the last 10 years we have proven our exper se in manufacturing products that are well known for their durability, performance and workmanship.

Vol. 7, Issue 07 - December - 2014

DAIRY NEWS

he project is to boost the dairy's processing capacity three times from the current 50,000l per day and will be completed in the next two years.

Currently, the dairy collects close to 350,000l of milk from around 40 dairy cooperative societies (DCS) in Kutch area, with around 50,000l of milk being processed and packed by the dairy everyday and the rest is sent to Amul's plant near Ahmedabad.

The Business Standard quoted Sarhad Dairy, Kutch chairman Valamji Humbal as saying: "At present, we are sending our milk collection for packaging to Ahmedabad at Gujarat Cooperative Milk Marketing Federation's (GCMMF) plant as we have very small packaging facility in Anjar taluka of Kutch. "We are in process of setting up new packaging and storage unit with some new products manufacturing under Amul brand.â&#x20AC;? "We are in process of setting up new packaging and storage unit with some new products manufacturing under Amul brand." While the new plant will have an initial processing capacity of around 150,000l day, it will have the potential to be increased to 600,000l a day eventually. The new packaging and storage capacity will also help in increasing the current count of 600 collection centres in the Kutch area. It will produce 15 other products along with milk powder, butter, ghee, butter milk, curd and ice cream under the Amul brand. Business Standard also reported that the dairy was considering providing life insurance cover of INR100,000 to the 15,000 women associated with it.

Beverages & Food Processing Times

Vol. 7, Issue 07 - December - 2014

FOOD SAFETY NEWS

nordinate delays in approvals from the country's food authority could lead the $11billion Ferrero Group to rethink investing a

o help strengthen food quality and safety in emerging markets, Eagle Product Inspection, a global pioneer of product inspection technology, including x-ray and inline fat analysis, has announced three new partnerships with well-recognized manufacturing machinery suppliers in India, Pakistan and Turkey. The alliances will support local manufacturers who are under pressure to guarantee product safety and integrity, optimize production capabilities, and comply with food safety regulations and retailer guidelines. “By expanding our local presence globally, food manufacturers worldwide will be able to benefit from increased service expertise, as well as advanced product inspection equipment to suit their needs with fast service response time,” said Simon King, Global Head of Sales at Eagle Product Inspection. “Since inception, we have strengthened our global service offerings considerably due to strong partnerships and are now present in Asia, Africa, North and South America, Europe and Australasia. Our strategy is to continue recruiting experienced Channel Partners in emerging markets, where local food manufacturers are increasingly looking to export their products. To trade in lucrative new markets, food producers have to adhere to strict safety regulations, such as those from the International Featured Standards (IFS) and the US Food Safety Modernization Act. As compliance can only be achieved by implementing comprehensive product inspection strategies, our trusted local partners can help facilitate this.” Eagle x-ray technologies have the capability to detect and reject foreign body contaminants such as metal, glass, stone, calcified bone, plastics and rubber in food and beverage products. In addition, to rejecting contaminated product, advanced xray inspection systems can verify weight and fill levels, ensure seal integrity and inspect for packaging defects – all within one machine. The product inspection pioneer also offers specialized technology for the meat industry, with advanced capabilities such as accurate measurement of chemical lean (CL) values of each meat package or raw product inspected in real-time, while also providing unparalleled contaminant detection. These product inspection solutions safeguard the manufacturer, retailer and consumer against inferior products, ensure product consistency, plus reduce the number of product recalls, fat claims and lean meat giveaway. Food processing is one of the largest industries in India in terms of consumption, production, export

eccan Cold Storage (I) Pvt. Ltd is established by ﬁfteen year experienced operators in this industry. Deccan Cold Storage (I) Pvt. Ltd started from 1 Jan 2013 on Pune Bangaluru NH-4 highway. This cold storage is

at strategic location on main highway; 23 km. from Pune city. Their plant is designed with green technology concept, giving energy efﬁcient system and offering stable refrigeration conditions. With up-to-date hydraulic /mechanical and

as well as expected growth with shipments of popular products, such as rice and wheat. For example, in the last fiscal year to March 31, 2013, India exported 22 million tons of grains[1], overtaking China as the world's large rice and wheat producer. To ensure consistent product quality and safety, Hemetek Techno Instruments has joined forces with Eagle to provide expert product inspection advice to local manufacturers. The India based company specializes in providing professional solutions in the testing measurement and calibration fields for food and beverage manufacturers and now will also supply Eagle's well-tested and trusted x-ray inspection and metal detection solutions to guarantee that Indian products are 100% contaminant-free. In addition, Hemetek will be introducing Eagle's inline fat measurement and contaminant detection systems for the meat industry ensuring that raw and packaged meat products contain the correct lean content and all physical contaminants have been removed. Similarly to the growth of the Indian food market, exports from Pakistan have risen by 5.4 percent[2] during the first three quarters of the 2014 fiscal year when compared to the corresponding period in 2013. Therefore the need for greater product safety and security is imperative to help sustain manufacturing success and thus product demand. To support local food producers with strengthening their product offerings by assuring quality, Eagle has appointed Karsaz as its local Channel Partner. The new partner now supplies business support technologies, including Eagle's globally recognized product inspection solutions. With expert knowledge and experience, Karsaz will support food manufacturers across the country with competitive product inspection technologies such as x-ray inspection, metal detection and inline fat measurement solutions.

“Three to four products have been pending for more than a year,” Chopra said, adding that “they are not regulating, they are strangulating us”. The Food Safety and Standards Act, under which the FSSAI has been created, says in the preamble that the Act is being passed to help the nascent food processing industry, given its employment and export potential, but that is not what is happening, Chopra said. “If there is no industry, what will you regulate,” he asked. The company needs approval if they have to launch any food product beyond the 330 products for which standards are laid out. fresh tranche of R500 crore in India. Ferrero India has already invested R500 crore and wants to double it to R1,000 crore. India was supposed to the Asia hub and the Indian plant had in fact started exporting to China. But delays in approvals in India and a red carpet welcome in China has made the Ferrero Group work on a new plant in China, said ambassador (retired) and Ferrero India secretary-general Inder Chopra. He is concerned about the possibility of this additional investment being diverted to China. It is tough to 'make in India' without the right support and environment,

Offering cold storage services to many well known brands like, Kaware Ice-creams, Gokul Milk , Govind Dairy, Filed Fresh, are to names of few. With a compact and committed team of service oriented and experienced personnel in this ﬁeld. The company is efﬁciently headed by Mr. Milind Deshpande, Mr. Rajendra Yenpure, Mr. Suhas Raykar as Executive Directors.

And this is not just a Ferrero problem, but a challenge for all the big and small food product makers in the country, he added. As the industry on the whole is suffering, there was a CEO-level meeting in August 2014 with the secretaries of the ministries of food processing and health to highlight these issues. Some companies have taken legal recourse and it has reached the Supreme Court. Ferrero India has its headquarters in Pune and its plant at Baramati, which employs 3,000 people, majority of them women.

eading food company BRF, which is responsible for the Sadia brand of frozen foods in the Middle East, opened a new Dh588-million ($160 million) factory at Kizad, Abu Dhabi, UAE. The 162,157-sq-m facility will employ more than 1,400 workers and will facilitate faster and more efﬁcient access of the Sadia brand to global markets, enhancing the brand's quality and innovation, said a statement.

Captain Mohamed Juma Al Shamisi, chief executive officer of ADPC, and chairman of the Kizad board, said: “We are delighted to see BRF as the first investor to become operational in Kizad. The opening of the food production plant represents a crucial landmark in our continuous efforts to enable development and trade, while diversifying the emirate's economy in line with Abu Dhabi's Economic Vision 2030. “The fact that BRF is opening its biggest Middle East plant in Kizad confirms the zone's world-class business offerings, innovative logistics infrastructure and unprecedented access to global markets through our flagship deep-water Khalifa Port, the first semi-automated port in the region. As the local food industry promises significant growth in the years to come, the BRF plant will considerably contribute to the local production output and reduce the emirate's dependence on imports.”

The plant will have a production capacity of about 70,000 tonnes of food products a year, including breaded items, pizzas and burgers.

Patricio Rohner, general director of Middle East and Africa, recognised the essential role of food safety in production and how BRF is impacting local food production standards in the Middle East

Another country with increasing food exports is Turkey, where food manufacturers are also under the magnifying glass to ensure compliance with international food safety regulations. In 2013, the country exported food and beverage products worth $10 billion[3]. To help food manufacturers meet regulatory food safety needs and safeguard consumers from substandard products, Mercury was chosen by Eagle as its local representative. The company specializes in the distribution of quality control technology and will now provide quality assured product inspection solutions such as x-ray inspection technologies to local manufacturers.

handing systems to Cut Short-on ''Hold Back Time'' in loading and unloading. Their plant is having LED illuminated lighting; full D.G set back up for 24 x 7 working; with CC camera surveillance, security agency and timely fumigation and antifungal treatment arrangements.

Chopra said, adding that delays in approvals from the Food Safety and Standards Authority of India (FSSAI) have held up fresh product launches and expansion of its portfolio.

The BRF is part of the working groups of Emirates Authority for Standardisation & Metrology (ESMA) and Standardisation Organisation for GCC (GSO). It encourages the continuous improvement of food production standards in the Middle East as well as knowledge sharing among all relevant stakeholders to ensure the region's food production safety and quality guidelines, it said. Abilio Diniz, chairman, said: “The new plant, represents one of the key foundations of BRF's strategy of commitment and investment to the Middle East region, a fast growing market that is most strategically placed for the internationalisation process of BRF products."

Beverages & Food Processing Times

“The factory demonstrates our capacity for innovation in production facilities that adhere to the strictest standards of quality and food safety worldwide and which rigidly follow the process of Halal to produce chicken and meat products for the region,” he said. “We are dedicated to continuous improvement in the food production chain for each product we deliver to our consumers. In addition, Sadia plans to expand its portfolio with breakthrough innovations to offer the best qualities products to our consumers

Vol. 7, Issue 07 - December - 2014

he recently launched herb-ﬂavoured Maska Rusk will be promoted through two ad ﬁlms that will hit TV screens on

December 5. The marketing objective is two-fold: provide rusk-eaters with a new variant, and remind the rest that the rusk makes for a great teatime snack option, after all. In a chai-guzzling nation like India, there can never be enough tea-time snack options. Rusk, is one of them. Derived from the word 'rosca', which is Portuguese for 'a twisted, coiled roll of bread', a rusk is a rectangular, hard, dry biscuit prepared by

BISCUIT NEWS

double-baking bread. Britannia has introduced a new herb-flavoured rusk variant called Maska Rusk. The objective is to tap into the growing business opportunity that the rusk segment currently offers. The rusk category, estimated to be at around Rs. 1,2001,600 crore, is growing at the rate of 15-16 per cent, annually. It is a hugely fragmented market, dominated by local bakeries and other unbranded players. Only 40 per cent of the rusk category in India is organised and is led by brands like Britannia and Parle. Maska Rusk is rusk that's flavoured with butter and savory herbs. The product was launched in the market in August this year. Grey India has created a two-film ad campaign that is scheduled to hit TV screens on December 5, across all popular GECs, including regional channels, we learn. Apart from TV, the campaign will include on-ground and point of sale (POS) branding. The product is already being promoted online.

K biscuits maker United Biscuits may expand its portfolio in India beyond its core McVitie's digestive biscuits after i t s acquisition b y Yi l d i z Holding, Turkey's largest food and beverage c o m p a n y. Earlier this month Yildiz Holding outbid US cereal and snacks maker Kellogg Co and UK ﬁrm Burtons Biscuits to buy United Biscuits from its private equity owners Blackstone Group and PAI Partners in a deal that would

n a signiﬁcant development, Mumbai-based Parle Products, the maker of biscuits, snacks and confectionery, has decided to rationalise its product portfolio by reducing brands from 50 to 20

The exercise, which commenced about four months ago, is expected to be completed by the end of this financial year, according to Pravin Kulkarni, general manager (marketing) at Parle Products. “Our endeavour is to drive our power brands. Rather than pushing each and every variant in our portfolio, what we will now do is bunch them under an umbrella, which will be a power brand. This way, managing our portfolio will become easier and we will not take our eyes off our key products. Our brand spends will also be rationalised as a result of this effort,” says Kulkarni. Parle's power brands in biscuits include Parle-G, Monaco, Hide & Seek, KrackJack, 20-20, Milano, Top, Kreams, Happy Happy, Actifit and Marie. In snacks, it has Parle Wafers, Full Toss and Namkeens. In confectionery, the company has products such as Mango Bite, Kaccha Mango Bite, Melody, Poppins, Kisme and Londonderry. Together, these brands contribute the bulk of Parle Products' estimated turnover of Rs 6,000 crore .These products typically have a number of flavours and variants under them, which Parle Products had aggressively launched in the past few years in a bid to take on competition. Kulkarni says it is time the company consolidated all these product offerings and focused its attention on a few of them that commanded a strong equity in the marketplace. “The Parle name commands trust. So we will not do away with that mnemonic. But the attention will increasingly shift to some of the strong names in our portfolio,” he adds. Rivals Britannia and Mondelez have also adopted a similar strategy, where the attention has shifted from the corporate name or logo to individual product brands in a bid to drive recall and sales. Mondelez famously took this up two years ago with Oreo in India, its first launch after taking over Cadbury in 2010. While the packaging retained the Cadbury mnemonic, owing to its popularity in India, Kraft aggressively pushed the Oreo brand name in promotions and advertising. It has stuck to this strategy pushing its power brands such as Cadbury, Oreo, Tang and Bournvita aggressively to ensure brand recall. On her recent trip to India, Mondelez International's chairperson Irene Rosenfeld had said the company would bring more biscuit offerings into India to expand its snacks portfolio. Some of its global biscuit brands include Nabsico, Ritz, Belvita, Barni and Mikado, which, if introduced in the country, could be pushed much the way Oreo was earlier.

Beverages & Food Processing Times

make it the world's third biggest biscuit maker behind Oreo-maker Mondelez and Kellogg. The deal was estimated at £2 billion, or $3.2 billion. Besides McVitie's, UB makes Jaffa Cakes and Jacob's Cream Crackers. In India's Rs 25,000-crore biscuit market, it has so far focused solely on McVitie's digestives. The digestives category, however, is getting increasingly competitive, with the big three players — Britannia, Parle and ITC — all stepping up their presence in the nutrition cookie space. The UB buy gives Yildiz a footprint in key emerging markets including India, but analysts say competing with established players will require big investments on distribution and brand building

Vol. 7, Issue 07 - December - 2014

urrently, the sector is growing at an average rate of 8.4 percent. The study jointly conducted by PHD Chamber and

Technopak said the private sector is committed to invest in the expansion of their manufacturing units in the food processing sector, especially after the call of 'Make in India', given by Prime Minister Narendra Modi. "Food processing industry is likely to register a consistent growth rate of over 10 percent from

ianesin Canepari & Partners (GC&P), an Italian lean management and business consulting company, plans to bring in more than Rs 150 crore of investment into the Indian food and beverages sector. Planing to set

up a chain of Italian restaurants called Macchiato. Other investments would include dairy products m a n u f a c t u r i n g a n d wines.http://articles.economictimes.indiatimes.c om/images/pixel.gif GC&P's core business in Italy is incubating startups and facilitating regular investment in small and medium enterprises. It has the backing of private equity and other institutional investors who channelise their funds via GC&P in sectors and markets of strategic interest.

FOOD PROCESSING NEWS

2015 onwards in view of its emerging potential, in which the private sector in this segment has already begun to invest to realize its impending worth," the study added. The study titled as 'India : World's Emerging Food Leader' have projected that its food processing sector, which ranks at ﬁfth presently world over in terms of production, growth, consumption and export is likely to reach at USD 194 billion by end of 2015. Releasing its ﬁndings, PHD Chamber President Sharad Jaipuria said, "On domestic front, demand for processed food and food products comprise a third of total demand. The growing population along with desire for convenience would drive the demand for processed food.” In 2012-13, India registered a 63 percent growth in the exports of agricultural products and processing foods which would naturally multiply in times to come, he added

set up Venezia Food & Beverages to focus its investments in the burgeoning F&B space. Italian cuisine is not just about pizza and pasta as there are many other things. Macchiato will serve authentic Italian cuisine at an affordable price and the quality will be equivalent to what a five star does, said Mr Rai CEO of Venezia Food & Beverages. The first Macchiato outlet will open in Navi Mumbai on November 26.When asked about debuting the brand in a micro-market like Navi Mumbai, Rai said: "Our idea is that even people living in smaller cities should enjoy these cuisines and we want to leverage the potential in these areas where you usually don't find these kind of restaurants.” Macchiato is open to growing through franchise, where the operations will be fully controlled by the brand and the partner will look at putting funds. The company is already in talks with potential partners in places like Goa, Pune, Gurgaon, Indore and Jodhpur.

RS Process Systems Ltd. (HRS), part of HRS Group, UK recently participated in the 9th International FoodTec India 2014 from 14th- 16th November, 2014 at Bombay Exhibition Center, Mumbai. The company emphasized the role of innovative technology for food processing while displaying the latest additions to the product range, HRS Monobloc Steriliser and UHT Steriliser. A recent FICCI report on the Indian Food Processing Industry stated that, in 2012, the $200 billion industry made a signiﬁcant contribution to economic and social growth, employing more than 3.1 million people in organized segments and micro, small, and medium-sized enterprises (MSMEs), with a signiﬁcant impact on local economies. It is estimated that the share of processed & packaged foods will increase to over 40% of overall intake by 2025-2030 at a growth rate of over 15% CAGR. HRS is one of the leading companies supplying the latest technology in food processing sector, focusing on processing of fruits, beverages, ready-to-eat food, milk and milk based products, nutraceuticals and probiotics. Their knowledge and expertise has e n a b l e d processors to change from conventional to more advanced processing technology with better quality and production at lower cost. “The Indian food processing sector is poised for dramatic shifts in consumption patterns. The emergence of

these new market demands necessitates a shift towards processed foods and heralds an unprecedented growth opportunity for the processed food industry over the next 7 – 10 years. We at HRS believe, with our process expertise, cutting edge technologies, products tailor-made to the food processing industry and impeccable services support are uniquely positioned to help businesses leverage this huge shift in demand," said Mr. V Gokuldas, Managing Director, HRS Process Systems Ltd. At International FoodTec 2014 HRS exhibited superior solutions for the fruit based beverage and pulp processing industry. HRS' clients such as Parle Agro, Innovative Cuisine, Pepsico, Varun Beverages, Field Fresh (Del Monte), ITC foods, Prabhat Dairy, and many more prestigious companies visited this event. The highlight for this event was the HRS Monobloc Steriliser, a complete system for aseptic sterilization and ﬁlling of fruit pulp, the UHT Steriliser and Nutraceutical processing systems for milk, milk products, infant food substitutes and probiotic health supplements.

GC&P started its operations in India in 2013 and

Mother Dairy will enter Chennai Market, eyes Rs 10,000 cr biz by 2017 in India

TR Foods Pvt. Ltd. (MTR), leading Indian breakfast mixes brand has launched yet another delicious offering for the Indian homemaker who is often battling

the taste versus time dilemma in morning rush hour while trying to surprise her family at the breakfast table with healthy options. MTR's New Poha is a wholesome and mouth watering breakfast with delicious nuts and dry fruits like peanuts and raisins and a dash of lemon making it a tasty meal to start off the day with. This simple and quick innovation takes just 3

minutes to prepare and needs only hot water to be added. MTR Poha is available in two ﬂavours of Regular and Khatta Meetha. It is available in all leading stores in multiple cities across the country, conveniently priced at Rs 15 for single use pack (60gms) and Rs 35/ Rs 40 for 2-3 servings (180gm).

Informing the media Vikran Sabherwal, VP Marketing, MTR Foods said "We've led the authentic Indian breakfast space for a while now and consumers love our South Indian breakfast options. With Poha which is one of the most loved Indian breakfast choices, we are broadening our cuisine offerings and thus reaching more and more Indian families.” Our consumer tests have been very encouraging, consumers have loved MTR Poha and are delighted by the fact that it is ready in just 3 minutes. This launch is a further step in easing the home maker's variety versus time dilemma, added Sabherwal

fter test marketing its products for almost two years in southern parts of the country, New Delhi-based Mother Dairy will formally launch its dairy products in Chennai in a month. The company which is currently growing at a CAGR of 20 percent, is also eyeing Rs 10,000-crore business by 2017. "We are looking at Chennai market very closely. It offers huge potential. In a month or so, we will launch products in Chennai", Mother Dairy Fruit and Vegetable Pvt Ltd Business Head (Milk, Mother Dairy Fruit and Vegetable), Sandeep Ghosh told reporters here. "The company is growing at 20 percent CAGR (compounded annual growth rate) and is eyeing Rs 10,000 crore business by 2017 and of that dairy business will be Rs 7,500 crore.” Mother Diary, a wholly-owned subsidiary of National Dairy Development Board, is also aiming to expand its outlets in the country. The company plans to set up 6,000 outlets in Chennai,

Beverages & Food Processing Times

Bangalore and Hyderabad in six months. "We will be looking at 15-20 percent of business from southern region. South for us is, currently, Chennai, Bangalore and Hyderabad," Ghosh said. Milk will be procured from the Balaji Milk facility at Tirupati and served to Chennai (rpt) Chennai region. The company is also looking at home delivery of milk in Chennai and it would be priced at Rs 39 per litre for toned milk, full cream milk at Rs 48 per litre and double toned milk and standard toned milk at Rs 36 per litre each. Mother Diary will also enter Rs 4,000-crore dairy whitener market with the formal launch of a product in a month or two country-wide, he said.

Vol. 7, Issue 07 - December - 2014

ndia is likely to challenge a WTO panel's ruling which had described the country's ban on American poultry product imports as inconsistent with global norms. The Department of Commerce is working on the "feasibility of filing an appeal against the WTO's panel report" in consultation with the Department of Animal H u s b a n d r y, D a i r y i n g a n d Fisheries, sources said. In its ruling on October 14, the WTO panel had said that India's measures are "arbitrarily and unjustifiably discriminate between Members where identical or similar conditions prevail and are applied in a manner which constitutes a disguised restriction on international trade". India has 60 days to appeal before the Appellate Body of the World Trade Organisation against the decision of the dispute settlement panel. In March 2012, the US had dragged India to the WTO against India's ban on imports of certain American farm products, including poultry meat and eggs. India had banned imports of various agricultural products from the US in 2007, as a precautionary measure to prevent outbreaks of Avian Influenza in the country. India is one of the potential market for the US which is one of the world's largest exporter of chicken meat.

COLD CHAIN NEWS

According to a report, India's broiler meat consumption is increasing and may touch 3.72 million tonnes in 2014 from 3.45 million tonnes in

2013. Further, India and the US are also engaged in consultations on another dispute at the WTO with regard to New Delhi's solar mission plan. In February, the US had dragged India to WTO on country's solar mission plan and alleged that the plan discriminates against American products. Sources said that after the constitution of a panel, the US made its written submission on October 24 and India will be making its written submission on December 5. After ﬁling of a complaint by a member, the WTO sets up dispute settlement panel to examine the complaint.

ack of cold and frozen supply chains leads to loss of fruits and vegetables worth over Rs 13,600 crore annually in the country, according to a report. The report 'A Tank of Cold: Cleantech Leapfrog to a more food secure world' by UK-based Institution of Mechanical Engineers calls for urgent action to encourage roll-out of sustainable cold chains in India to p r e v e n t unnecessary food loss, help alleviate hunger and improve global food security. As much as 50 per cent of perishable foot items are lost every year in India due to lack of cold storages, it said. India is the world's largest producer of milk, and second only to China in fruit and vegetables. Yet agriculture, which makes up 53 per cent of the workforce, generates just 15 per cent of GDP. As of 2012, India had about 6,300 cold storages with a capacity of 30.11 million metric tonnes. But about 60 per cent of them are located in Uttar Pradesh, Gujarat, West Bengal and Punjab.

The Indian government as well as NGOs involved in development initiatives and retailers need to prioritise investment into affordable, reliable and sustainable cold chain, said the report. "Using the cryogenic engine technology to provide cooling of large refrigerated lorry or rail containers will cost between a fifth and a third of using diesel for the same job. It has the added benefit of zeroe m i s s i o n o f pollutants... "When combined with the increased income to farmers from getting more produce to market, this makes economic as well as environmental sense," it said, adding that India is well placed to use the technology as it has both the LNG infrastructure and the engineering talent. Domestic investment in cold chain is forecast to be $15 billion over the next five years, but to ensure this investment is sustainable and cost effective it must focus on powering these cold chains using renewable energy sources, the report said.

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Beverages & Food Processing Times

Vol. 7, Issue 07 - December - 2014

www.agronfoodprocessing.com

HEALTH NEWS

Vol. 7, Issue 7, December 2014, Rs. 20/-

Under the “make in India”, the Indian government plans to introduce quality standards for food processing apart of some other industries as part of a drive to make the country a manufacturing hub for quality products. The idea is to specify quality standards for 10 products each in the 25 focus sectors. The Bureau of Indian Standards (BIS) will develop or update standards in line with prevalent international benchmarks as proper standards are needed if the country has to emerge as a destination for quality manufacturing. The standards would be either mandatory or voluntary, which will be decided after detailed examination. Departments of consumer affairs and industrial policy and promotion have initiated discussions on the move based on the prime minister's call for 'zero defect and zero effect' manufacturing in the country to produce quality products without any adverse impact on the environment. This make in India concept is going to be an added value to the fast developing food processing industry of India – The Industry that is to grow at the rate of over 10 percent from 2015 onwards as a result of increased investment from private sector. Currently, the sector is growing at an average rate of 8.4 percent. A study jointly conducted by PHD Chamber and Technopak said the private sector is committed to invest in the expansion of their manufacturing units in the food processing sector, especially after the call of 'Make in India', given by Prime Minister Narendra Modi. Food processing sector, which ranks at ﬁfth presently world over in terms of production, growth, consumption and export is likely to reach at USD 194 billion by end of 2015. On domestic front, demand for processed food and food products comprise a third of total demand. The growing population along with desire for convenience would drive the demand for processed food. To enhance the food industry, no doubt the Indian government has embarked on several measures, including funds for food processing units and cold chain facilities, to help improve the country’s food processing sector and boost exports. India is a top producer of food grains, and fruits and vegetables, but processed food exports remain stunted because only 2% of total production is currently processed in the country. Lack of food processing and cold chain facilities are also reasons behind the high wastage of food, which is estimated at up to 18% of total production. However, there is a strong demand in the food processing sector which is now growing at the rate of around 12% per year. To encourage further growth, the government has unveiled a comprehensive National Food Processing Policy which will drive the overall development of agricultural sector. The government had allocated Rs.2, 000 crore for the food processing sector and had reduced the excise duty on food processing equipment from 10% to 6%. And, the National Bank for Agriculture & Rural Development (NABARD), will disburse these special funds as term loans for establishing Food Parks and also for setting up of individual food or agro processing units. NABARD said that the repayment period for such loans will be a maximum of 7 years, and the extent of the term loans will be up to 95% of the total project cost for the State Governments and up to 75% for others. The rate of interest will be around 1.5% less than bank rates for State governments. NABARD has also allocated Rs.1, 000 crore to fund cold chain infrastructure projects in the country. Speaking of food industry development, the trade is an important link for its enhancement. The endorsement of the global agreement on trade facilitation by the general counsel of the World Trade Organization (WTO) is a major step forward for the world trade body. It was after long and frustrating negotiations spread over many years and recurrent deadlocks that member countries had arrived at a basic agreement on trade facilitation. India stands to gain much from the agreement as trade is an important part of its development strategy. But it has to improve its physical infrastructure for trade, like ports and road and rail links, and bring its customs rules in line with the prescribed procedures to take full advantage of it. It must also ensure that the assurances given to it over the food procurement programme and domestic agricultural subsidies are honored. WTO rules may need to be changed for this, though the peace clause now has permanent validity. It also gives India the time to reform its domestic policies.

ccording to the United Nations, India will witness a jump in the number of elderly aged 80 years or over from 10 million in 2013 to 37 million in 2050 . A recent United Nations Population Fund report also revealed that the number of over-60s in India will increase from around 100 million in 2012 to more than 300 million by 2050 . This means that the country will have overtaken China in having the largest ageing population in the world by then. India's so-called 'silver tsunami' is imminent, and with it will come multiple implications for the society including a high impact on healthcare demands. Geriatric healthcare and age-related health conditions can be complex and costly to treat. A balanced nutrition plays a vital role in delaying or preventing the onset of non-communicable diseases, such as obesity, diabetes, gut related disorder, osteoporosis and others. Food manufacturers can develop or modify their food products to beneﬁt elderly consumers and help them tackle the challenges by tapping o n functional f o o d ingredients.

control group. Also, this increase in bio-available calcium was demonstrated to reach the bones and increase bone mineral density; thus reducing the risk of osteoporosis. Enhancing mood and memory Getting older usually goes in hand with a decline in cognitive capacity, resulting in some degree of memory loss in the aged. The elderly might also suffer from mood changes. A recent study by researchers in Swansea University, Wales , showed the effects of BENEO's functional carbohydrate PalatinoseTM(isomaltulose) on a person's mood and memory. This is mainly because of it slow glycaemic nature. Being fully yet slowly digested, it releases energy in the form of glucose in a more balanced and prolonged way. In the study, 155 middle aged and older adult

Having a good bowel function In Asia, selfreported surveys show that about 13 to 17 percent of t h e population suffers from constipation . Factors contributing to the increasing risk of constipation in older people include insufficient fibre and fluid intake, as well as impaired mobility. These tendencies also place older people at greater risk of gastrointestinal disease and discomfort. Food manufacturers can include in their manufacturing process prebiotic fibres like BENEO's inulin and oligofructose. These prebiotic fibres resist digestion in the small intestine, hencethey only get fermented when they reach the colon. Due to this, bacterial mass and water content of the faeces increase and this leads to softer and a bit more frequent stools, but not diarrhoea. Numerous human studies consistently show that daily consumption of inulin-type fructans, such oligofructose and inulin, improves and helps to maintain bowel function. For many people, these mild shifts resulting from a more optimal fibre intake mean a noticeable improvement of gastrointestinal health and overall well-being. Being prebiotic,these fibressupport the growth of bifidobacteria, beneficial bacteria that can help to maintain a healthy gut flora in the large intestine. In turn, the development of certain potentially harmful bacteria is inhibited, resulting in positive health effects on the digestive system. Food manufacturers can cater tothe needs of senior consumers by fortifying products such as cereals and b a k e d g o o d s , d a i r y, b e v e r a g e s a n d e v e n confectionery with prebiotic fibres and offerquick and easy options for consumers to boost their fibre intake. Calcium nutrition and bone health Additionally, functional food ingredients like BENEO's oligofructose-enriched inulin (Orafti®Synergy1), can contribute to keeping bones healthy by improving calcium absorption. In a normal diet, only one third of calcium consumed is absorbed by our bodies. However, scientific studies have shown that the calcium absorption can be increased by using oligofructose-enriched inulin. One such study was conducted by researchers at Baylor College of Medicine. They found that calcium retention and accretion in bones increased by as much as 15 percent over a period of one year in a group of adolescent subjects on a diet supplemented with oligofructose-enriched inulin, as compared to a

Beverages & Food Processing Times

volunteers who have a better homeostasis were randomly divided into three groups. Participants in each group consumed a breakfast that included yoghurt and a drink with 40 grams of glucose, sucrose and Palatinose™ respectively, representing decreasing glycaemic loads and an identical amount of calories. Mood and memory function tests were then carried out on all the participants. The group of participants who consumed Palatinose™ performed significantly better -- showing better episodic memory compared to the groups who had glucose and sucrose. They made fewer mistakes than those who had ingested glucose. They were also found to be in a better mood - measured by subjective scoring of related adjectives on a percentage scale. The results show the potential of Palatinose™in boosting health and mental performance. Preparing for India's silver tsunami As the silver tsunami inevitably crashes ontoIndia's shores, food manufacturers need to strategize nowon formulating products that will help the country's ageing consumers.One possibility is by developingfood products that are enriched with functional ingredients like prebiotic fibres that can help the elderly better manage constipation, as well as enhance calcium intake and maintain bone health. Food manufacturers can also look into functional ingredients that can help the elderlyboost their memory and better control mood swings. United Nations (2013) World Population Ageing 2013 United Nations Population Funds (2012) Chew, J. (10 May 2012) 'How bad is your constipation? Check your stool' The Straits Times, Mind Your Body, Pg 14-15) Abrams, S., Griffin, I., Hawthorne, K., Liang, L., Gunn, S., Darlington, G., Ellis, K. A combination of prebiotic short and long-chain inulin-type fructans enhances calcium absorption and bone mineralisation in young adolescents. Am. J. Clin. Nutr. 82: 471-476, 2005 The glycemic load of meals, cognition and mood in middle and older aged adults with differences in glucose tolerance: A randomized trial. Hayley Young, David Benton, e-SPEN Journal, 24 April 2014, http://dx.doi.org/10.1016/j.clnme.2014.04.003 In Press, Accepted Manuscript

Vol. 7, Issue 07 - December - 2014

espite growing demand for chocolate, small volumes and volatile domestic prices makes growing cocoa a struggle for small farmers in India. Focusing on quality instead of quantity oﬀers them an opportunity to access new markets. The train only stops on request at the Kreuzlingen Bernrain railway station that overlooks Lake Constance in northeastern Switzerland. Appearances can be deceptive because the tiny, tranquil-looking station masks a hive of activity nearby. On the other side of the train tracks, the Stella Bernrain chocolate factory is working at full steam. Winter is the busiest time of year for the company as more chocolate is consumed at this time of the year than any other season. One of Stella Bernrain's most exclusive products

COCOA NEWS

replace them with more lucrative cash crops like rubber to take advantage of rising prices. The price for cocoa on the other hand varies a lot depending on local weather conditions. “The main cocoa harvest in India takes place around the rainy season when the moisture content in the beans is higher. The farmers therefore get a lower price for their produce, as the price is calculated on the basis of dry bean weight,” K.T Bhat, chief manager cocoa, for the Cocoa Marketing and Processing Cooperative Limited (CAMPCO) told swissinfo.ch. Wet conditions also means there is not enough sunlight to dry the beans making them prone to mould and rejection by buyers. The resulting unpredictability in supply of beans compels domestic buyers to source most of their cocoa from international markets and also helps them

Like the domestic buyers, Stella Bernrain also faced a bottleneck when it came to sourcing Indian cocoa beans despite a very modest requirement of 12-20 tons. The challenge was much harder for the Swiss company, as it was looking to procure high-quality, organic cocoa beans. The company partnered with two farmers cooperatives in the state of Kerala to obtain the first batch, but the pioneering attempt was far from successful. “In 2009 we got the first container of cocoa beans but it didn't meet our quality standards and we could only make cocoa butter out of it," says Panakal. The company sent Lutz to India to help the farmers improve the cocoa bean quality and master processing techniques, especially the drying and fermentation of cocoa beans. They also invited a few representatives of Indian cocoa farmers to visit the factory in Switzerland to learn the basics of chocolate q u a l i t y requirements. “ O u r investment paid off and we got better quality cocoa beans in 2010, that we were able to transform into the first premium Swiss-made I n d i a chocolate,” s h a r e s Panakal.

is single-origin chocolate. These chocolates are made from cocoa beans harvested from a speciﬁc country. The company allows you to sample the unique taste of Ecuador, Madagascar, Trinidad or Costa Rica - in chocolate form. The latest country to join this premium chocolate category is India, with an exclusively Indian dark chocolate bar called “India Noir 72%”. “It is part of our strategy to ﬁnd different countries to produce a really special singleorigin chocolate,” Sonbol Valadi, head of purchasing, told swissinfo.ch. ”People in Europe are fascinated by India and it is really special to have the name on a chocolate bar.

avoid paying a premium for scarce Indian cocoa beans.

to opt for higher quality beans.

Thus cocoa farmers stand to lose a lot if the weather is bad. This makes planning and investment difﬁcult, especially for small cocoa farmers who only produce small volumes of cocoa beans.

“Investing in new fermentation and processing techniques is a bit difﬁcult in the beginning but it is worth it in the long-term,” Joseph Chackochan, chairman of the Indian Organic Farmers Producer Company Limited (IOFPCL) told swissinfo.ch.

Minimising the risk of a poor cocoa yield is what

Another cocoa cooperative partner, Manarcadu Social Service Society (MASS), now invests 20% of its proﬁts in quality improvement measures like centralised processing facilities to ensure a more standardised product. “This way we can ensure we have the same quality as big plantations. Now we can compete with any big player in the industry when it comes to quality,” says Bijumon Kurian, chairperson of MASS.

”Cocoa scarcity Despite its low profile in the chocolate industry, India has been a cocoa producer for almost 50 years. Cocoa production was introduced to the country in 1965 by Cadbury, now part of the Mondelez International group, that purchases most of the cocoa beans grown in the country. “Today we source a third of our cocoa requirement from India, which is saying a lot because our business has been growing significantly over the last seven to eight years due to a significant increase in domestic consumption,” Siddhartha Mukherjee, executive director at Mondelez India Food Limited told swissinfo.ch. Cadbury's cocoa shortfall coincides with statistics from India's Directorate of Cashewnut and Cocoa Development Board, that pegs production in 2013 at 15,600 tonnes against a domestic demand 45,000 tonnes from the chocolate industry. Despite the high demand, there is not enough of an incentive for cocoa farmers to step up production. In India, cocoa is grown as an intercrop with rubber, coconut, arecanut and coffee, all of which are more important to farmers than cocoa as a stable source of income. “Rubber and not Cadbury is our biggest competitor,” confirms Markus Lutz, product development manager at Stella Bernrain. Cocoa farmers often uproot cocoa trees and

This model p r o v e d attractive to small cocoa f a r m e r s w h o s e s m a l l e r outputs made i t advantageous

Whether the approach is increasing quality or quantity, chocolate manufacturers all over the world are investing in farmers to ensure that there is enough cocoa beans to meet growing chocolate demand across all segments of the market. Swiss chocolate manufacturer Stella Bernrain offered small cocoa farmers. It provided an alternative business model that was based on quality rather than quantity for those farmers willing to invest in cocoa bean processing knowh o w. I t a l s o s o u g h t t o m i n i m i s e t h e unpredictability associated with the domestic cocoa market. “We promised them that the price would be transparent and would be based on the international trading price plus the premium for organic and fair trade cocoa beans,” Antony Panakal, business development manager told swissinfo.ch. Domestic companies interested in their cocoa beans are not as strict when it comes to quality. But transparent pricing and the opportunity to export their produce was a strong incentive for some of the more enterprising cocoa farmers. Investing in farmers

“There is deﬁnitely a trend of scarcity. Due to increasing demand and limited supply, we will have less cocoa in the future. This is deﬁnitely an issue for a company that focuses on premium chocolates,” says Nathalie Zagoda, spokesperson for well-known Swiss chocolate brand Lindt & Sprüngli. According to her, the predicted scarcity has encouraged many chocolate farmers to create initiatives that help cocoa farmers improve the quality of their produce. Examples include the Lindt & Sprüngli Farming Program, Mondelez International's Cocoa Life and the Mars group's Cocoa Sustainability Initiative. This farmer-friendly approach is best summed up by Mukherjee of Mondelez India. “What is good for the farmers is good for the cocoa crop, and what is good for the Indian cocoa crop is eventually good for us.”

Beverages & Food Processing Times

Vol. 7, Issue 07 - December - 2014

FOOD INGREDINTS NEWS

nacks that are healthy, tasty and easy to consume are set to shape the future of how people eat and drink, according to Arla Foods Ingredients.

Research shows that as many as 90% of adults snack daily, with the average person consuming 2.2 snacks a day. Pleasure and convenience are the key drivers to purchase – but the winners in the snacking category, says Arla Foods Ingredients, will be products that combine these two essential attributes with positive health credentials such as those offered by dairy proteins. To meet these market opportunities, Arla Foods Ingredients has created a package of three healthy snacking concepts

incorporating high quality dairy proteins. The concepts offer food and beverage companies a way into the snacks category with added-value products that consumers will want to buy time and time again. They will be showcased on Stand E5 at Health Ingredients Europe, which takes place in Amsterdam from 2-4 December 2014. Troels Laursen, Head of Health & Performance Nutrition at Arla Foods Ingredients, said: “High quality milk proteins such as whey offer a wide range of health benefits, including increased levels of satiety and stabilisation of blood glucose levels, which are fantastic for healthy snacking concepts. With consumers leading increasingly busy lives, they struggle to find time to eat three sit-down meals a day, and we believe snacking is the future of eating. However, it will be healthy snacks that are key to maximising success, and the concepts we've developed for HIE will showcase the benefits of dairy proteins in snack products that offer consumers nutritious and guilt-free indulgence.” The three new healthy snacking concepts developed by Arla Foods Ingredients are: High protein smoothie – made with Lacprodan ® Smooth80, a whey protein that boosts protein levels in smoothies to as high as 6% without negatively impacting on taste and texture. 100% whey-based drink – incorporating Lacprodan® DI7017, this concept offers a milk or water-based drink that contains high levels of a whey protein concentrate that is highly soluble and digestible. Protein bar – formulated with Nutrilac® PB-8420, a natural milk protein, this bar concept tastes delicious and offers a

long shelf life, retaining its pleasant soft texture for more than a year.

Beverages & Food Processing Times

Vol. 7, Issue 07 - December - 2014

ithin its overriding theme “The Power of Less”, BENEO is putting a particular focus on balancing blood sugar levels at HiE this year. The company demonstrates how its ingredients can lower the blood glucose response of food and drinks and consequently contribute to healthy lifestyles. In addition to blood sugar management, BENEO will also be putting its gluten-free solutions on centre stage at the show. High glycaemic diets have been linked to the increased incidence of non-communicable diseases (NCDs), such as diabetes and obesity. With consumers increasingly aware that low glycaemic products contribute to healthy nutrition, the move to offerings that promote blood glucose management is gaining pace. In fact, in 2013 the number of worldwide launches with a low glycaemic claim increased by almost 20% compared to 2012[i]. In Asia a recent consumer research by BENEO shows that 69% of the consumers in Thailand and 39% of Indonesian consumers are concerned about maintaining healthier blood sugar levels[ii]. Following the positive 13.5 EFSA health claims opinion for the low glycaemic characteristics of its prebiotic fibres oligofructose and inulin, as well as health claim approvals for the functional carbohydrates, Palatinose™ (isomaltulose) and ISOMALT, BENEO is now showcasing how these nutritional benefits can be translated into appealing product concepts: Power Chews Incorporating BENEO's low g l y c a e m i c carbohydrate, Palatinose™, these chews are not sticky and maintain their soft texture during shelf life. With a sugar-like, mild sweetness, Palatinose™ has been used in this formulation to bring down sucrose levels and achieve a slower rise in blood glucose. Velvety Yo-fruit Sips - Containing BENEO's ingredients Palatinose™ and Orafti®Synergy1 (oligofructose-enriched inulin), this fruitflavoured yoghurt drink is low glycaemic and a good source of fibre. While it is fat-free, the drink maintains a creamy mouthfeel thanks to BENEO's rice starch. Dominic Speleers, Executive Member of the BENEO Board comments: “It is fascinating for BENEO to offer low glycaemic products that can help to delay or even avoid the onset of diseases like type II diabetes, heart disease or obesity. But such a benefit is only valuable if communicated and understood by the consumers.

ndia-based Sarhad Dairy is to invest around Rs70cr ($12.96m) to expand its storage and packaging capacity.

The project is to boost the dairy's processing capacity three times from the current 50,000l per day and will be completed in the next two years. Currently, the dairy collects close to 350,000l of milk from around 40 dairy cooperative societies (DCS) in Kutch area, with around 50,000l of milk being processed and packed by the dairy everyday and the rest is sent to Amul's plant near Ahmedabad. The Business Standard quoted Sarhad Dairy, Kutch chairman Valamji Humbal as saying: "At present, we are sending our milk collection for packaging to Ahmedabad at Gujarat Cooperative Milk Marketing Federation's (GCMMF) plant as we have very small packaging facility in Anjar taluka of Kutch. "We are in process of setting up new packaging and storage unit with some new products

FOOD INGREDINTS NEWS

This is why BENEO will complete its package by undertaking European consumer research. This is being currently conducted by BENEO's market research team and will look into the relevance, knowledge and understanding of the “low glycaemic” benefits of our functional carbohydrate Palatinose™ and prebiotic fibres. So far the results look very interesting.” With Europe being the leading market for glutenfree products worldwide, BENEO is also choosing this year's HiE to showcase innovative gluten-free concepts. Following the overriding theme, 'The Power of Less', the samples on stand are demonstrating the range of nutritional benefits of BENEO ingredients, highlighting their taste and texture potential for innovative food and drink ideas:

rla Foods Ingredients has developed a range of next-generation 'recombining' solutions that will enable dairy companies to produce high quality speciality cheeses without fresh milk. The solutions offer dairy companies the opportunity to create recombined white, processed and cream cheeses based on Nutrilac® functional milk proteins, water and fat – usually butterfat or anhydrous milk fat (AMF). They work on existing recombining machinery and

Claus Andersen explained: “After the abolition of quotas there will be no restrictions on how much milk member states can produce, which almost certainly means there will be a signiﬁcant fresh milk surplus. Much of this surplus will be converted into dairy ingredients, some of which will be sold into markets outside of Europe where it will be used to produce recombined dairy products. Our Nutrilac® recombined cheese concept will be a perfect ﬁt in this new commercial landscape.”

Gluten-free Scrumptiously Soft Muffins Containing BENEO's rice starch, rice flour and oligofructose, these muffins are not only glutenfree, but retain their moistness and freshness for longer. They are also a good source of fibre. BENEO offers various specialty rice ingredients for gluten-free product formulations that provide great taste and texture and offer additional benefits such as being clean-label, organic and non-GMO. Gluten-free Crunchy Choc-Chips - Containing BENEO's highly soluble inulin HSI, rice starch and rice flour, these cookies are gluten-free and high in fibre, but also sugarreduced. T h e addition of BENEO's inulin HSI creates a mild, sweet taste in the cookie dough and, thanks to the inclusion of BENEO's rice starch, the cookies also have extended shelf life and a great texture. BENEO's leadership in nutrition science and food application is reflected in the official Hi and Ni Europe Conference programme which will feature two presentations from BENEO experts: Christiaan Kalk, Senior Manager Nutrition Communication BENEO, will address the potential of Palatinose™ and inulin-type fructans for blood sugar and weight management, in relation to consumer perception. Time: Tuesday, 2nd December at 1:30pm Isabel Trogh, Customer Technical Support Manager BENEO, will discuss technical solutions for sugar reduced products with great taste and texture. Time: Tuesday, 2nd December at 4:30pm

manufacturing under Amul brand." "We are in process of setting up new packaging and storage unit with some new products manufacturing under Amul brand." While the new plant will have an initial processing capacity of around 150,000l day, it will have the potential to be increased to 600,000l a day eventually. The new packaging and storage capacity will also help in increasing the current count of 600 collection centres in the Kutch area. It will produce 15 other products along with milk powder, butter, ghee, butter milk, curd and ice cream under the Amul brand. Business Standard also reported that the dairy was considering providing life insurance cover of INR100,000 to the 15,000 women associated with it.

generate no whey sidestream, maximising output and reducing waste. Recombined dairy products are particularly common in parts of the world where there is limited or no access to fresh milk. This is often the case in regions such as Latin America, Africa, South East Asia, China and Russia. Recombined liquid milk and simple yoghurts made from rehydrated milk powder are already widely manufactured. However, recombined speciality cheeses have traditionally proved more complex and challenging to produce. Claus Andersen, Category Manager at Arla Foods Ingredients, said: “Shoppers in emerging markets are now seeking out more sophisticated dairy products, such as speciality cheeses, bringing their tastes more into line with western consumers. To meet this demand without access to fresh milk is not an easy job. But the Nutrilac® recombined cheese concept means it's possible to produce the high quality and nourishing speciality cheeses that consumers in these markets want – cheeses that are as good as if they were made with fresh milk.” Recombined dairy products are also expected to increase in importance in the European Union when milk quotas are abolished on 1 April 2015.

rIssA, InDIA-BAsED DAIry MILK MAntrA has made its first acquisition, with the purchase of Sambalpur-based Westernland Dairy for $1.6m. Milk Mantra, founded five year ago by ex-Tata Administrative Services executive Srikumar Misra, is looking to increase its product offerings as well as expand further into Orissa, and enter Chhattisgarh and Jharkhand. “This acquisition gives us the ability to increase our immediate processing capacity in western Orissa and other states, where we can extend our Milky Moo franchises," Misra, managing director and chief executive, Milk Mantra, said. This is the first acquisition by Milk Mantra. The company, which is backed by impact investment firm Aavishkaar and private equity heavyweight Fidelity Growth Partners India, which led a Rs 80-crore investment in the venture earlier this year, is scouting for more buyout opportunities.

Beverages & Food Processing Times

The Nutrilac® recombined cheese concept offers more than 20 flexible solutions with variable cost-in-use, capable of producing cheeses of different quality tiers. “Depending on the market in question and the spending power of the consumers living there, we can create recombined cheeses with three different quality profiles: good, better and best,” explained Claus. “This means our concept offers versatile solutions that can be applied in all types of markets globally.” Arla Foods Ingredients has 25 years' experience in recombined dairy products and also offers Nutrilac® functional milk protein solutions for recombined ice cream and stirred, set and drinking yoghurts. Claus said: “Overall, as a result of increasing affluence in emerging markets, demand for cheese alone is expected to rise by up to 25% in the next 10 years, compared with 2012 levels, according to figures from the International Dairy Federation. Nevertheless, access to fresh milk in these countries will remain difficult so the importance of recombined dairy products will continue to grow. We have a wide range of Nutrilac® solutions to help dairy companies produce excellent recombined products cost-effectively, ensuring they can

always stay one step ahead of their competitors.”

The Bhubaneshwar-headquartered venture will also be launching a slew of dairy-based, valueadded products, such as functional milkshakes and probiotic drinks, by the quarter ending March through modern trade outlets. The development comes at a time when several emerging dairy start-ups, heavily backed by venture capital, are beginning to create a strong presence for themselves in the space, which has been traditionally dominated by government-owned entities, such as Mother Dairy and co-operatives, such as Gujarat Cooperative Milk Marketing Federation, which owns and operates the Amul brand. " Over the past 18 months ﬁrms such as Sequoia Capital, International Finance Corporation and Rabo Equity, have invested in ventures, such as Milky Mist, Parag Milk Foods and Prabhat Dairy, respectively.

Vol. 7, Issue 07 - December - 2014

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Oil Coolers Heat exchanger

Water Cooled Chiller

Chiller Shell & Tube Heat Exchanger

Cooling Tower

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JANANI ENTERPRISES, COIMBATORE Mr. K. Vijayakumar (CEO) 59, Variety Hall Road Coimbatore - 641 001, Tamil Nadu, India Phone: +(91)-(422)-4358151 Fax: +(91)-(422)-4356948 Mobile: +(91)-98400 25243 / 90470 25243

Beverages & Food Processing Times

Vol. 7, Issue 07 - December - 2014

FOOD PROCESSING NEWS PACKAGING NEWS

Building loyal consumer base is very important Rajiv Mitra (Govind Milk)

ondelez International will acquire 80% s t a k e i n Vi e t n a m ' s K i n h D o Corporation's snacks business for

o tap North East states' potential to emerge as a destination for cultivation of spices, the Spices Board has embarked on

$370m.

However, before this transaction, Kinh Do Corporation will complete its previously announced restructuring to consolidate its snacks division (except for the Kido ice cream and dairy division and its retail bakeries) into one business entity, BKD. A statement from the company said that Mondelez International has an option to acquire and KDC has an option to sell the remaining shares of BKD. The option is also exercisable any time after 12 months from the completion of the 80% investment. "Our significant investment in Kinh Do and Vietnam is a perfect fit for our growth strategy in Asia Pacific, strengthening our core snacking categories in a high-growth dynamic market.”

plans to promote farming of a wide range of produce that fetch great demand in domestic and global markets. According to the Board, with Assam in the core location, Arunachal Pradesh, Manipur, Nagaland, Tripura, Meghalaya and Mizoram are congenial grounds for commercial cultivation of spices retaining their unique generic properties. Spice India, the official journal of Kochi-based Spices Board, said the rich land and the alluvial soil deposits along the Brahmaputra river basin and the tropical rain forests offer a splendid backdrop for organic farming. "Given a support, these factors can contribute towards improving farm incomes, enhancing food and nutrition security, accelerating the overall economic growth of the region and marketability of produce from this region," the journal said. The project is expected to give a fillip to a variety of spices like Naga chillies, highly pungent bird's eye chillies of Mizoram, high curcumin bearing Lakadong turmeric of Meghalaya, Himalayan ginger and large cardamom. To start with, the Board will come up with flagship schemes in Arunachal Pradesh, partnering with the state Horticulture Department, as part of which an MoU has already been signed

The company said that Kinh Do's popular brands, including Kinh Do mooncakes and biscuits, Cosy biscuits, Solite soft cakes and AFC crackers would complement Mondelez's portfolio of snacks brands in the region like Oreo cookies, Ritz crackers and Cadbury chocolates. Mondelez International Asia Pacific and Eastern Europe, Middle East and Africa executive vicepresident and president Tim Cofer said: "Our significant investment in Kinh Do and Vietnam is a perfect fit for our growth strategy in Asia Pacific, strengthening our core snacking categories in a high-growth dynamic market.”

with decades of heritage. Its deep understanding of local consumers, the commercial environment and complex routes to market in Vietnam, provide a strong foundation to grow the business. Our companies share a passion for making brands people love, so I'm tremendously excited about what our businesses can achieve together.”

Kinh Do Corporation chairman Tran Kim Thanh said: "We're proud to be able to bring Kinh Do to the next level of growth and to offer new tastes to consumers, not only in Vietnam but the world.

"Today's announcement is also ﬁrm recognition of Kinh Do as a well-loved brand that has earned the trust of consumers over the years. The proposed transaction is aligned to our business direction and will help us to successfully deliver our new strategy.” The proposed transaction which is subject to approval at Kinh Do Corporation Extraordinary General Meeting and certain other regulatory requirements is expected to close in the second quarter of 2014.

"Kinh Do is a successful Vietnamese business

erkshire Hathaway's QSR Chain Dairy Queen Seeks Partner For India Foray

US based ice cream and QSR chain, Dairy Queen is looking for a partner to foray into the Indian QSR market. The unit of Berkshire Hathaway's is planning to open its burger chain in the country. The company was said to be in talks with Reliance Retail for launching its dairy business in the country, however the deal did not consummate. Owned by Warren Buffet's Berkshire, Dairy Queen has over 6000 restaurants in the United States, Canada and 18 other countries. To start with, the Minneapolis based chain would be looking at opening 100 burger stores in the space dominated by McDonalds in the organized sector having a lion's share of 75%. The

how exactly we will go about it. That, if at all, will be done closer to the time of actual listing as and when it may be," he said. According to GIL, while its investment at cost in Godrej Agrovet was around Rs 144 crore for shareholding of 60.8%, the same would be currently valued at around Rs 2,000 crore. "Our calculations show that the value of the assets – if you break them down – in Godrej Industries is considerably higher than its market cap," said Godrej. Unlike many other holding companies, most of the investments Godrej Industries holds is in the listed company, hence it is very easy to ﬁnd the valuation. "Even Godrej Agrovet shares are worth a lot because just a two years ago a major deal was done with Temasek so people know the valuation

unorganized sector accounts for 40% sales of the total INR 1 Bn market. This would be its second attempt after its 2011 effort for the foray. Dairy Queen joins other player including Burger King, Fat Burger Carl's Jr, Wendy's and Johnny Rockets that are seeking to gain a share of the country's QSR market pegged at INR 55 Bn in 2013. Berkshire had acquired International Dairy Queen Inc. for $585 Mn in cash and stock in 1997. Burger King had partnered India focused PE fund, Everstone Capital for its India entry. The Indian QSR business has been one of the active sectors attracting a lot of PE/VC attention. Be it early stage or the ones in their growth phase.

of that holding," he said. In December 2012, Singapore-based investment firm Temasek – through a combination of primary and secondary investments – had acquired a 19.99% stake in Godrej Agrovet for about Rs 572 crore. The objective behind the fundraising, GIL then said, was to support its future expansion plans. For the second quarter fiscal 2015, Godrej Agrovet performed well despite challenges including volatile commodity prices and erratic weather conditions. While oil palm sales for the quarter ended September 30, 2014, were up 24% year on year, agri inputs rose increased 18% and animal feed sales grew 13% in the same period. According to Godrej, the animal feed, oil palm and agri-input businesses have shown significant growth and the company's strategy in the animal

Beverages & Food Processing Times

ruit grower and canner Del Monte Pacific Limited has struck a deal with Barcelonabased fruit processor and UK-based investment firm to put up a food processing facility in the Philippines and market frozen fruits globally. In a disclosure to the Philippine Stock Exchange M o n d a y, D e l Monte Pacific said its board approved a joint venture with Nice Fruit SL and Ferville Limited to process, market and sell Nice Fruit frozen products to various markets overseas. "The joint venture will give us access to the growing fresh frozen market where we currently do not compete," COO Luis F. Alejandro told GMA News Online in a text message. Under the agreement, Del Monte will own 35 percent of the venture while Nice Fruit will have 51 percent equity and Ferville 14 percent. Barcelona, Spain-based Nice Fruit is a global company engaged that produces and distributes fruits and vegetables. Ferville, on the other hand, is a minority financial investor responsible for hammering out joint ventures. The venture involves establishing a modern facility in the Philippines that will utilize Nice Fruit's patented technology – Nice Frozen Dry – that allows fruits, vegetables and other produce to be frozen for up to three years with its nutrients, structure, original properties and organoleptic characteristics preserved. Fresh produce will be exported globally with the technology, Alejandro said. "We will start with pineapples using the same variety we export fresh today under the S&W brand to Asia Pacific and the Middle East.” "The technology is patented and there is no loss if not minimal, in organoleptic properties when the products are thawed," he added. With the technology, Nice Fruit bagged one of the Salon International de l'alimentation (SIAL) Innovation Awards – Catering and Food Service – this year, as well as five other awards at the Alimentaria International Salon in Barcelona. With the Nice Frozen Dry technology, Nice Fruit is betting on radical changes in food consumption habits, and advantages for export and improved food stock management to come about.

feed business of strengthening presence in cattle and layer feed segments is paying well. "The new shrimp and fish feed facility in Andhra Pradesh has commenced production which will strengthen our presence in this space. Our future prospects for our agri-business remains robust and I am confident that we will continue to deliver good results," he said. Analysts said Godrej Agrovet has grown 12-15% despite adverse business conditions. Balram Yadav, managing director, Godrej Agrovet, said, "While we cannot promise 25-30% growth, the business certainly can witness good double-digit growth for the next five years."

Vol. 7, Issue 07 - December - 2014

FRUIT NEWS

from India. Advancing the process, Japanese quarantine authorities have sought details of Vapor Heat Treatment (VHT) facilities across Andhra

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Pradesh, Maharashtra, Gujarat, UP and West Bengal (mango imports are permitted from these states) to appoint a supervisor for inspection.

“This year, we do not want to leave any stone unturned. We are making all possible attempts to increase our mango exports to Japan,” said an industry ofﬁcial.

The VHT system is a non-chemical alternative to control and quarantine unwanted insects and fungi in perishable commodities and tropical fruits. Interestingly, the health ministry of Japan had in early July exempted inspection for chlorpyrifos, a chemical residue, in Indian mangoes. Carrying out the Japan's motif, India's agricultural export promotion body, the Agricultural & Processed Food Products Export Development Authority (Apeda) has asked its interested members to submit details of VHT facilities by December 30 to enable it to extend the same to the Japanese quarantine authorities. India's fresh mango exports to Japan plunged to almost 'nil' in the last two years due to stringent quality norms set by the importing authorities. During 2011-12, however, India's mango exports to Japan stood at 70 tonnes worth $0.18 million. Japan currently ranks on 51st in India's mango exports, way behind much smaller countries including Mali, Zambia, Poland and Portugal, slipping from 19th rank in 2011-12. United Arab Emirates continues to lead with over 50% of share in India's overall mango exports. Modi's ﬁve-day visit to Japan in September strengthened trade ties between the two countries. While similar attempts were made during the last mango season, because of late initiatives, mango exports to Japan yielded elusive results.

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Beverages & Food Processing Times

Apeda official, however, cautioned exporters that once details of the VHT facility and the schedule of the inspectors are finalized, there would be no change in the programme. Also, the VHT facility must necessarily make all tie ups with pack houses/growers etc for proper off take to justify the deputation of the Japanese quarantine inspectors. As per protocol signed between the two countries, Japan accepts VHT mango varieities –Alphonso, Kesar, Banganpalli, Langra, Chausa and Malika only from Andhra Pradesh, Maharashtra, Gujarat, UP and West Bengal. Japan imposed a ban on the import of Indian mangoes because of suspected pest infestation by fruits flies. After two decades of the ban, Japan allowed import of Indian mango on June 23, 2006. However, since then, Japan has kept low on mango import from India.

Vol. 7, Issue 07 - December - 2014

CA has developed Solo Print, a one-side coated paper as part of its Sustainable Packaging product family. This paper gives printability in the same class as upmarket magazines, with the market's best environmental proﬁle.

The new product, Solo Print, is specially developed for flexible packaging, well suited for bags, wrapping paper, flowpack and banners. Solo Print is characterised by a very high print quality and very high opacity (less transparent). Solo Print is certified for direct contact with dry and fatty food. Solo Print is also suitable for lamination base or PE/PP coating on the inside to allow for heat sealing and to provide moisture protection. Solo Print can also be used in board applications. Its high opacity and brightness provides a perfect surface for various types of board applications. Thanks to its good profiles and dimensional stability, Solo Print is also suitable as a lightweight liner in corrugated applications. “Our new Sustainable Packaging products have been well received by converters and brand

he BIOMAT research group from the University of the Basque Country (UPV/EHU) has responded to the demand for longer shelf life coupled with sustainability, with the development of a biodegradable/compostable container for both liquid and solid oily products.

PACKAGING NEWS

owners,” says Rolf Johannesson, Marketing Director at SCA Forest Products. “We have identified strong demand for a one-side coated paper and we have therefore decided to launch one.” The coating is of the same high quality as the printing paper that SCA produces for magazines and advertising. The paper is based entirely on fresh fibre and is therefore highly suitable for applications within the food sector. Solo Print complements SPLENDO, OPERIO and PURO, three product lines that have already been launched within Sustainable Packaging. They include both coated and uncoated grades and combine a resourceefficient and light packaging material with excellent printability. They also offer attractive features in terms of product safety and environmental performance, such as low carbon footprint, fresh fibre from sustainably managed forests and environmentally compatible production. “We have applied our extensive knowledge of both printing on paper and packaging solutions in the development of our new products, to combine printing performance with efficient resource management and low cost. We are also proud of our world-class environmental performance,” says Rolf Johannesson, Marketing Director at SCA Forest Products. SCA Ortviken in Sundsvall has an annual production capacity of 900,000 tonnes of coated and uncoated paper for printing and packaging and has around 700 employees.

Ishida India has developed Package Commodity Scales with Software (as per PCR Rules 2011) to comply with following THE FIFTH SCHEDULE Manner of Selection of Sample Packages 1. For determination of Net Quantity for any Commodity contained in a package, the sample size should be such as it is speciﬁed in the corresponding entry column 2 of the table below against the lot size speciﬁed in Column 1 of the said table.

Ishida Package Commodity Scales can be placed at end of Packaging lines. Samples as described in the above rules can be weighed and Statistical Analysis viz Average,

Salient Features: a) Each scale can cater upto 4 lines by single operator b) Tower lamp will glow incase any weighment is higher/lower than the limits speciﬁed. c) Multiple scales can be connected to single PC software through Ethernet d) Operator to manually acknowledge incase of any weighment going beyond limits. e) If hourly average goes beyond

World production of bioplastics in 2013 was 1.6 million tonnes and is expected to reach 6.2 million tonnes by 2017, according to the Institute for Bioplastics and Biocomposites. One of the lines of research of the BIOMAT group is to

Number of High, Number of low, Standard Deviation, Mean can be obtained on per hour basis from Specially Designed PC based Software with Cp and Cpk analysis at end of Shift.

The container is transparent but provides a barrier against ultraviolet light and gases like oxygen. The product has only a single layer, which reduces the cost considerably, and can be thermally sealed and is printable. According to the researchers, the new packaging is no longer a mere container, as it performs an active role in the maintenance and even improvement of the quality of the food. The main function of the packaging container is to prolong the useful life of the packaged food through the control of permeation phenomena, either through the use of barrier materials or through the retaining of harmful substances and/or the incorporation of beneﬁcial substances for the packaged food. The raw materials used originate from renewable sources, which have the capacity to biodegrade.

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Beverages & Food Processing Times

limits, Alert emails can be generated. At end of shift one excel sheet report per line can be automatically generated and saved to a particular folder. g) For hourly weighments which go beyond limits, additional tower lamp can be used to alert operators/supervisors. Ishida India also conducts seminars and training program on legal metrology package commodities) rules 2001 for customer on request.

Vol. 7, Issue 07 - December - 2014

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Vol. 7, Issue 07 - December - 2014

TRADE NEWS

level of $464.1 billion to about $900 billion by 2018-19 (CAGR of about 14 per cent) and take India's share of global exports to above 3 per cent.

Exports had registered a growth of 4.7 per cent at $314.4 billion in the previous ﬁscal.

"An aggressive product promotion strategy for high value items that have a strong manufacturing base is the main focus of the overall growth strategy.

overnment has ﬁxed an export target of $340 billion for the current ﬁscal, Commerce and Industry Minister Nirmala Sitharaman.

Japan and the US contributed 1.84 per cent and

ndia's import bill on account of edible oils is expected to touch US $15 billion as against us $9.3 billion during 2013-14 due to 10% shortfall in the oil seeds production in Khariff impacted by the El Nino effect, reveals the

The core of the market strategy is to retain presence and market share in traditional markets, move up the value chain in providing export products in the developed countries' markets; and open up new vistas, both in terms of markets and new products in these new markets," she added.

13.75 per cent respectively to total exports during April-September period of the current year, Sitharaman said in a written reply to the Rajya Sabha. Growth rate of exports entered the negative zone after a gap of six months, declining 5.04 per cent in October due to a dip in shipments from engineering, pharma and gems and jewellery. In a separate reply, she said that the long-term vision of the government is to increase India's exports of merchandise and services from present

ndian rice exporters will be worst hit by a general ban on imports of rice imposed by Iran recently. The Iranian ban will further drag depressed prices of basmati rice in the domestic market. Iran has barred rice from other countries as its local crop is reported to be good this year and is set to arrive in the market there. Teheran has imported over 1.25 million tonnes (mt) of rice this year during April-July against 1.45 mt in the same period a year ago. Iran has bought over 2.5 million tonnes of basmati rice from India in the last two years.

The focus sectors have been identified as pharmaceuticals, electronics, automobiles, leather, gems and jewellery and textile sectors to boost shipments. “Focus of the strategy is to penetrate into the markets in Asia (including ASEAN), Africa and Latin America to strengthen our presence in newly opened up markets. At the same time our aim would be to deepen engagement in the older markets,' she added. Top ten destinations of Indian exports during the first half of the fiscal are: USA, UAE, Saudi Arabia, Hong Kong, China, Singapore, UK, Brazil, Germany and the Netherlands.

Currently, the basmati paddy is ruling at around Rs 2,960 a quintal, far lower than the 5,360 it fetched during the same time a year ago, in the markets of Punjab and Haryana. The market seems to have factored in the Iranian ban as the rumours have been ﬂoating around over past three weeks, an exporter said. Basmati prices are down by about 30 per cent over last year, also inﬂuenced by a higher crop in India. “Our production is higher by about 30-35 per cent higher than last year with output being higher in the non-traditional States such as Madhya Pradesh, Rajasthan and eastern UP,” said Anil Mittal, Chairman of KRBL, the largest producer and exporter of basmati rice. While KRBL's exposure to Iran has been minimal only at around 15,000 tonnes annually, Mittal said the demand from Europe was on the rise.

ASSOCHAM latest findings. The study brought out by the ASSOCHAM Agri Research Wing has revealed that the major three Khariff oil seeds viz sunflower, groundnut and soyabean would witness a fall in production respectively by 35%, 31% and 1%. As of now (till October mid), India has imported more than half of its domestic edible oil requirements, adds the ASSOCHAM paper. The immediate impact of witnessing such a short fall in the production of groundnut and sunflower is due to the volatility in their short run price movements. However, prices of edible oils since April 2014 reveal that there has been no perceivable build up in the retail prices of edible oils on the whole in India. However, as against All India trend, Mr. D.S. Rawat, ASSOCHAM Secretary General said, some regional level volatility in prices of edible oils has been noticed. First, movements in the price of groundnut oil are highly volatile. Barring the Southern region, they fluctuated widely in all the four regions of the country. Second, Sunflower oil prices have declined in the Southern and Western regions. Thus, there has been no significant impact of build-up of prices of these commodities despite their expected short supply from domestic sources. The integration of domestic markets with international markets has, in fact, resulted in reducing the price shocks of edible oils. However, dependence on imports have made India footing high import bill and invite volatility into the

Indian market. Moreover, oilseeds and edible oil markets are not vertically integrated in India. As a result, there exists asymmetry in the transmission of prices from raw materials to ﬁnal products and vice-versa. Another peculiarity of

Indian edible oil market is the volume of edible oil imports is a function not only of demand, but also of speculative trading positions as well as the credit period and payment cycle. The vulnerability of Indian edible oil market to international prices as well as supply chain imperfections can be seen from the stock-to-use ratios . The industry stocking norms of the seasonal crops indicate that about 20 percent of the production should be in the form of stocks to meet the ongoing demand until arrival of the next crop in the market. The stock-to-use ratios of the edible oils in India remained at less than half of the required levels indicating how much their prices are susceptible to volatility, said Mr. Rawat. The import bill on account of edible oils into India during April-August period in the current ﬁscal has already jumped by 53.2% on year-over-year basis and September-October bill has been on a much higher side due to festive season, says the study. Thus, in the current context imports have been helping the domestic market to ward off the adverse impact of short fall in the production of oil seeds in the Khariff season. While, India's deﬁcient production of oil seeds is a well known fact, its skewed trade policy further adds to its high import dependency. There also exists a case of inverted duty structure as import of oil seeds has been subjected to higher customs duty than import of crude edible oils. There also exist restrictions on export of edible oils like groundnut oil from India. Table 6 contains information on domestic availability of edible oils in India.

Earlier this year, Iran cut imports of India's basmati rice after it imposed new standards on chemical contamination.

“We feel the ban is temporary, but it will hit the exporters. Prices will also come under pressure,” said MP Jindal, President of All India Rice Exporters Association. Jindal, who is the Chairman of Best Foods International, a major exporter to Iran, said ofﬁcials of the industry body are meeting the Commerce Secretary on Friday to take up the issue at government-level with Iran. According to Agricultural and Processed Food Products Exports Development Authority (Apeda), basmati exports to Iran during AprilJuly were valued at Rs1,732 crore against Rs1,810 crore a year ago.

Dissatisfaction over the quality of rice being delivered by Indian exporters also led to fall in shipments. India and Iran created a barter system two years ago to overcome Western sanctions following a dispute with Teheran over its nuclear programme. In exchange for Iranian oil, India offers Teheran rice, soyameal and pharmaceuticals. Under the trade arrangement, India pays for part of the crude oil it receives from Iran in rupees. The funds are then deposited at the Public sector UCO Bank and used to pay exporters for shipment of food and other products to Iran.

dible oil major, Ruchi Soya Industries Ltd has divested its majority stake (50.001%) in a Hyderabad-based subsidiary Gemini Edibles and Fats India (GEFI) to Singapore-based Golden Agri International India Holding Pte Ltd at a total consideration of $17.88 million (Rs 109.92 crore).

“Exporters will take a hit since prices are bound to fall in view of the ban. They deserve it since they have been ignoring other markets at the cost of focusing on Iran,” said an ofﬁcial of a rice exporting ﬁrm not wishing to identify himself.

AK Gupta, Advisor to Apeda, said, “though the ban seems temporary, it may lead to loss of our market, which we may or may not regain”. Gupta said the exports to Iran were lower by about three lakh tonnes in the current ﬁscal so far. Overall, the basmati exports this ﬁscal may end lower by 5-7 per cent at around 3.5 million tonnes, Gupta added.

India is already paying dearly for focusing on only Iran to export soyameal. In September, soyameal exports plunged to lower than 1,000 tonnes in view of Iran cutting its imports.

The consensus among the Indian exporters is that Iran may re-open their markets by end-January or early February.

As a result of focusing on Iran, Indian exporters had neglected or ignored other markets such as Japan and Korea.

GEFI incurred losses three out of ﬁve years since existence due to unfavourable government policy, which made edible oil business unviable in India.

Beverages & Food Processing Times

During the last financial year i.e. 2013-14, GEFI recorded a net loss of Rs 4 crore, a small yet significant amount for edible oil companies. Operating as a subsidiary of the world's second largest palm oil plantation company Golden AgriResources Ltd (GAR), Golden Agri International Pte Ltd is engaged in the production of palm based edible oils and fats. With a market capitalisation of $5.7 billion, GAR has 470,600 ha area under palm plantation in Indonesia. The company posted an operating profit of $31.86 million in the third quarter of 2014 as against $65.99 million in the corresponding quarter last year. "There is a direct business synergy between the two companies. Both are engaged in the production nof palm-based oils and fats. Nothing could have been better than the current selling," said an edible oil analyst.

Vol. 7, Issue 07 - December - 2014

BISCUIT NEWS

ritannia Industries, the over 100-year-old biscuit manufacturer, is testing the waters of the fast-unfolding Indian e-commerce story. The Wadia Group-controlled, $1-billion biscuit major is taking a leap of faith with an exclusive tie-up with the Jeff Bezos-led Amazon for the launch of its latest product Good Day Chunkies, a super-premium chocolate chip cookie. "Clearly, digital is the emerging distribution channel. The tie-up with Amazon will give us a lot of insights as to what this channel can offer us," said Varun Berry, MD, Britannia Industries, told TOI. Good Day Chunkies, the

company's m o s t expensive product at Rs 50 for six cookies, will be sold for the ﬁrst few weeks (beginning next week) exclusively on Amazon.in. The product won't carry a delivery charge and will be part of A mazon' s gourmet & specialty foods store. E-commerce remains an unchartered territory for F M C G companies in India, given that the sector's distribution n e t w o r k l a r g e l y comprises traditional

unorganized trade. In the biscuit industry, for instance, the availability of the product is spread across 6.7 million outlets of which just 10% is modern retail. However, several global retail brands have increasingly taken to targeted social media launches on the internet in a bid to amplify the hype around the launch and measure almost instant consumer feedback. The Good Day brand franchise, which constitutes 26% of Britannia's revenues, or about Rs 1,600 crore, will see its online cookie launch become a first-of-its-kind initiative by the company, or for that matter by any Indian FMCG player. In September, Coca-Cola launched its sugar-free soft drink Coca-Cola Zero in India through a similar exclusive partnership with Amazon India. More recently, American fast food major Burger King received pre-orders for 1,200 'Whopper' burgers before its store launch in the national capital, through a tie-up with e-commerce player eBay. Arvind Singhal, CMD of retail consultancy firm Technopak, said he personally believes that such initiatives are more of a marketing tactic. "Online grocery shopping in India is still in its infancy. No person shops only for one product online and buys the rest offline," he said.

For updated news everyday logon to www.agronfoodprocessing.com

Beverages & Food Processing Times

Vol. 7, Issue 07 - December - 2014

Beverages & Food Processing Times

Vol. 7, Issue 07 - December - 2014

BISCUIT NEWS

S-based snack company Mondelez International announced plans to break ground on a $90m biscuit manufacturing plant in the Kingdom of Bahrain in December 2014. It is the company's second major investment in the country, following a $75m Kraft Cheese and Tang powdered beverage plant, which has been operational since 2008. The plant will be built in the International Investment Park and will produce biscuits for six brands, including Oreo, Ritz, TUC, Barni, Belvita and Prince. It is expected to generate 300 direct jobs during the initial years and will further create 1,000 more indirect jobs. It will also create hundreds of direct and thousands of indirect jobs in the next two decades, depending upon the potential demand in the Middle East and African regions. "The project is part of Mondelez's ongoing supply-chain reinvention plan to cater to the growing demand for biscuits in the Middle East and Africa." The project is part of Mondelez's ongoing supply-chain reinvention plan to cater to the growing demand for biscuits in the Middle East and Africa. It is claimed to become the company's most advanced manufacturing plant in the Middle East and

Africa. The biscuit manufacturing plant will be built in a 250,000m² site located 3km from the existing Kraft Cheese and Tang powderedbeverage plant at the International Investment Park, which is located on the outskirts of the capital city of Manama. Bahrain has been preferred by Mondelez for the establishment of the new plant as it has good logistics, availability of skilled workforce and business-friendly environment. The necessary land for the project is reclaimed by the Bahrain Government and will be made available by December 2014. The full scale commercial production of the plant is scheduled to begin in early 2016. For the ﬁrst two to three years, the plant will operate four biscuit manufacturing lines and will produce nearly 90,000t of biscuits a year. The biscuits will be supplied to the entire Middle East and Africa regions, which are currently being served by the company's plant in Eastern Saudi Arabia. The existing plant has reached its maximum capacity and has no scope for further expansion. Mondelez International has designed a supply-chain renovation plan through which it is anticipated to offer $3bn gross productivity savings, $1.5bn of net savings and $1bn of incremental cash over the next three years. These savings will help the company drive signiﬁcant improvements in the base operating income margin. Mondelez International, formerly Kraft Foods, has been operating in the Middle East since 1912. The company's regional hub located in Dubai manages operations, sales and distribution in over 15 nations in the region. The company employs more than 1,500 people from 40 nationalities, including Bahrain, Saudi Arabia and Pakistan. Oreo biscuits and Tang powdered beverages are some of Mondelez's best-selling products in the region. Mondelez is one of the largest snack companies in the world, manufacturing and marketing food and beverage products to consumers in approximately 165 countries. Its product portfolio includes biscuits, chocolates, gun & candy, powdered beverages, cheese and coffee. The $9bn brand portfolio includes Cadbury, Cadbury Dairy Milk and Milka chocolate, Jacobs coffee, LU, Nabisco and Oreo biscuits, Tang powdered beverages and Trident gum

Beverages & Food Processing Times

Vol. 7, Issue 07 - December - 2014

INTERVIEW

hat are the products and services your c o m p a n y i s providing to the food processing Industry? The product Chemcent offers has a one letter word i.e flavour, but actually it isn't just that. It actually is a deciding part of sensory Vishal Shukla, experience a consumer Managing Director, Chemcent India undergoes in a food product. At Chemcentwe genuinely believe that it doesn't suffice to have just a good flavour, but it is a necessity that it integrates with the end product and also is in perfect accordance with the sensibilities of its end consumers. Not to end there, it has to be unique enough to retain the longing of a consumer for that particular brand. Above vision, has always been a thrust of focus for our marketing and business development team. India has become a hub for the sub-continent food processing industry for sourcing food ingredients of Indian as well as foreign suppliers, your views? To my knowledge India has a long way to go to attain a status of major hub of food ingredients especially in processed food and value added food segment, for which Indian businessmen need some sincere co-operation and impetus form the government. Presently India seems to be doing well only in its native products segment, for example spices, dehydrated onions or food pertaining to Indian cuisine etc.

What are the thrust segments (Beverages, Bakery, Confectionery, Dairy, RTE, Snacks, Etc.) you see in the food processing industry? The thrust segments possibly could be Snacks, RTE and Dairy, if one compares the scope they have to the untapped or unexplored opportunities. What quality assurance you give to your buyers if they opt for your products? Chemcent has a clear quality policy. It comprises of getting raw materials only through right sources. Performing post procurement checks and testing, monitoring our production process with proper controls and checks in place, analysing our end products for set standards and packaging of products with proper checks under expert supervision & last but not the least, all under hygienic conditions. FSSAI came into the existence to protect consumer's right for having good quality foods but now, it is becoming a force to hinder/ discourage business among the raw material and food ingredient suppliers, your comments? FSSAI motive to protect consumer safety is unquestionable, and is largely shared as a common motive by Indian business operators. Having said that, for any new entity, to come into effect has to be adaptive with its environment and vice a versa. This can only be attained through highly collaborative approach rather than authoritative approach. Processed food industry is a major contributor to Indian economy and parallels can always meet with a right approach. Indian economy and growth rate have slowed down in the last 2 years, do you see any slowdown in Indian food & beverages segment and its procurement of raw materials and ingredients? Having a limited insight, could only say that, in past years, no major congruence has been noticed between slowing of Indian economy and slowdown in Indian food & beverages segment (slowdown period in particular). Propellants of Indian economy and Indian food & beverages segment are by far divided. Impractical regulatory norms and high inﬂation in food commodities can be potential adversaries for food sector in future.

Beverages & Food Processing Times

Vol. 7, Issue 07 - December - 2014

ershey is considering a plan to replace the high fructose corn syrup in some of its products with sugar.

The idea comes amid growing concern among consumers that HFCS is particularly unhealthy. Among the Hershey products that could be affected by such a change are Almond Joy, York, and Hershey syrup. The Hershey chocolate bar does not contain HFCS. Everything that you need to know about Hershey's reasoning here can be explained in this quote from the company's chief of research and development, on the debate over sugar vs. high fructose corn syrup: "We take into account what consumers want. And consumers are telling us between the two, they prefer sugar." Corn growers and processors may disagree, and so may many scientists. But the customer, as they say, is always right. So it seems likely that Hershey will yank HFCS soon.

ctress Sonam Kapoor has been signed up by Mars Chocolate India as the face of its new campaign. “Sonam's vivacious personality is a perfect ﬁt with the new chocolate brand campaign that we have signed her for,” Raghav Rekhi, marketing director, Mars Chocolate India Pvt. Ltd, said in

a statement. The “Khoobsurat” actress is also thrilled. “My love for chocolates is no secret. Mars Chocolate India makes some of my favourite chocolates. I am thrilled to be a part of one of the most exciting chocolate campaigns in India and am looking forward to a great journey ahead,” she said.

Mondelez International is putting $24 million toward its Gebze, Turkey plant, which makes local gum, candy, and chocolate brands and globally-recognized ones such as Halls and Trident, they announced. Antoine Collette, the managing director of Mondelez Turkey, said, "This new investment enables us to play an even bigger role in supporting the growth of our global confectionery business." The company's "supply-chain reinvention plan" is predicted to save billions, including $3 billion in gross-productivity savings. Mondelez has been pretty busy lately. It just bought a large stake in a Vietnamese food manufacturer and is thinking positively despite a dip in proﬁts. It's hard to say whether this reorganization is really

Beverages & Food Processing Times

Vol. 7, Issue 07 - December - 2014

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Beverages & Food Processing Times

Vol. 7, Issue 07 - December - 2014

epsiCo has divested its entire companyowned bottling operations in North India to its franchisee bottling partner Varun Beverages in a move that the US beverages and snacks major hopes will help it step up its ﬁght for market share with Coca-Cola.

Following the deal, PepsiCo's role in north and east regions, which contribute about 40 per cent of its national sales, will be mostly limited to marketing and supplying concentrates to bottling operations.

sales in the quarter ended September, helped by a prolonged summer season, after about ﬁve quarters of single-digit growth in the country. RJ Corp, PepsiCo's largest bottler in South Asia, wil

"We are expanding our partnership with a strategic partner who understands the local market and has continually demonstrated the ability to drive synergies and deliver strong market execution," said D Shivakumar, chairman and CEO at PepsiCo India.

With the latest acquisition, Varun Beverages will own 13 PepsiCo bottling plants including those in Delhi-NCR which it acquired last year, UP, Rajasthan, the northeast and Goa. Overall, Varun Beverages owns 19 plants including in overseas markets like Sri Lanka, Mozambique, Zambia and Morocco. PepsiCo runs 10 companyowned manufacturing facilities in the south and west India. Besides, there are three franchisee operations in the west and south. "We have no plans to exit bottling operations in the south and west," Shivakumar said. "This does not impact operations in our foods business," he added.

The deal comprises transfer of four plants and two co-packing units spread across Uttar Pradesh, Haryana, Chandigarh, Uttaranchal, Himachal Pradesh and Punjab with over 900 direct employees. With this deal, PepsiCo's entire north and east India bottling operations, with the exception of Bihar, come under Ravi Jaipuria's RJ Corp, which owns Varun Beverages, making it one of the US major's top franchisee bottlers globally. "There are huge operational efﬁciencies, cost savings and supply chain advantages of consolidating operations across the region," Ravi Jaipuria told ET. Neither Jaipuria nor Shivakumar commented on the size of the deal.

industry insiders.

Last year, PepsiCo announced an investment of Rs 33,000 crore by it and its bottling partners by 2020 to step up its manufacturing and go-tomarket infrastructure in India.

India is the ﬁfth-largest market for Pepsi-Co globally. But the maker of Pepsi cola, 7-Up lemon drink and Mountain Dew, trails Coca-Cola in the Rs 14,000-crore Indian soft drink industry. PepsiCo reported doubledigit growth in volume

l look to accelerate its growth in the country and bridge the gap with Coca-Cola, which makes Coke, Thums Up and Sprite ﬁzzy drinks and holds 56 per cent market share in India, going by estimates of market researcher Nielsen shared by

RJ Corp has business interests across restaurants, ice-cream, education, hotels and real estate. About half of its current $1.5 billion business is accounted for by Pepsi-Co. Jaipuria also has the franchisee rights for quick service restaurants Pizza Hut and KFC and exclusive franchise rights for UK cafe chain Costa Coffee.

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Beverages & Food Processing Times