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Vol. 7, Issue 6, November 2014, Rs. 20/-
Rs2k cr for Food Processing planned to be used soon
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he government will soon come out with guidelines for operationalising Rs 2,000 crore special fund by National Bank for Agriculture and Rural Development (Nabard) to boost food processing industrials and mega food parks, a government official said on Thursday. The Rs 2,000 crore fund announced in the budget by finance minister Arun Jaitley, had not taken off due to some issues with regard to utilising the money not just for direct financing by Nabard to food processing industries but refinancing as well. Nabard is basically a refinancing institution to promote agriculture development. After discussions with food processing and finance ministries and Reserve Bank of India, Nabard has formalised the draft guidelines, which has been sent to the centre for approval. With government clearing the air on utilising the money for refinancing as well, the draft guidelines is likely to be approved shortly. The idea behind this special fund is to make available
affordable credit to agro-processing units being set up, especially in designated food parks. Three mega food park projects in Khagaria, Bihar, Satara in Maharashtra and Una in Himachal Pradesh have been approved recently. Initially the government proposed to set up five mega food parks in the country. Several cold chain projects are also being set up. The official said a special fund would be available for projects in dedicated food parks in the c o u n t r y, m e g a food parks and designated special economic zones. The fund would be available for units processing fruits and vegetables, meat, poultry and fish. India loses Rs 30,000-40,000 crore worth of fruits and vegetables annually due to rotting, poor logistics and improper handling at the time of harvest. A sizeable percentage of this wastage could be avoided by boosting food processing industries.
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Government is working on National Food Processing Policy to reduce wastage
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ccording to Food Processing Minister Harsimrat Kaur Badal, the Government is working on National Food Processing Policy to reduce wastage of perishables and improve the supply situation,. Badal also said agriculture credit should also be connected with food processing sector as the ultimate beneficiary is farmer. She further added that, “there is need of some integrated policy for the food processing sector we are working on it with the purpose of reducing the wastage of perishable fruits and vegetables so that we can bring down the inflation. Badal was speaking at the National Cold Chain Summit organized by CII jointly with Ministry of Food Processing Industries and Ministry of Agriculture and National Centre for Cold Chain Development (NCCD). Badal added India is the second largest producer of fruits and cereals, third in marine production and has the largest livestock in the world, but still the country is able to process only 2 per cent.
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"There should be zero tolerance towards waste. Currently, there is Rs 44,000 crore of wastage and unless we work towards removing that, our growth story cannot be completed. The cold chain
capacity of the country is 30 million tonnes, whereas it produces around 200 million metric tonne of products," she said. Badal emphasised that the utmost focus should be on reducing the wastage of three main vegetables -- onions, tomatoes and potato as they are driving inflation.
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Vol. 7, Issue 06 - November - 2014
FOOD PROCESSING NEWS
Disney to sell bags of Frozen and Spider‐Man apples
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MP‐CM announces 5‐ year exemp on from Mandi fee for Food Processing units
hief Minister Shivraj Singh Chauhan said the seed certification institutes would be opened at Shahdol, Indore and Jabalpur
up factory for food processing would be exempted from ' Mandi fee' for five years. The committees comprising farmers would be set up for organic products. Chauhan was addressing the concluding ceremony of ' Rashtriya Jaivik Krishi Utsava' in Mandla on Monday, said that Madhya Pradesh would carve a niche not only in the country but in the world in the field of organic farming. Chauhan said the state contributes 40% in organic farming of the country and it is an outcome of the ardor and awareness of farmers of the state. As many as 23 MoUs were also signed in the Krishi Utsava.
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isney has signed a branding deal to put apples in tote bags bearing images from its hit movie Frozen and Marvel Comics' Spider-Man. The apple bags are the latest offering from Disney Consumer Products' "better for you" food initiative, which has been branding fruits and vegetables with Disney characters since 2006. The apples are rolling out nationwide following smaller efforts over the summer with Winn Dixie
The CM said farmers in the state would be given grant on green manure. and Albertsons supermarkets.
Arrangements of counter in every Mandi would be made for organic product. To encourage organic production, a meeting of Jaivik Vikas Samiti would be conducted once in every three months, he said.
No doubt this is a good deal for Disney, which picks up some goodwill from parents. And no doubt it's good for the kids too. An apple a day, as they say, keeps the childhood obesity away. Still, there's something disconcerting about a Disney character trying to get someone to eat an apple.
while an organic research and training centre would be opened in Mandla. He said those setting
Chauhan said Seed Development Corporation would be asked to develop traditional seeds. Arrangements for branding and packaging of organic production would be done. Animal husbandry would be promoted in the state, added Chauhan.
Taiwan to jointly work with U arakhand in field of Food Processing
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Aiwan and Uttarakhand will jointly work in the field of food processing besides conducting cultural and educational exchange programmes with each other in the field of higher education. It was decided that Taiwan would jointly work with Kumaon University as well as Graphic Era University in the field of higher education from w h i c h s t u d e n t s f r o m b o t h Ta i w a n a n d Uttarakhand will benefit. The Chief Minister welcomed the representatives to Uttarakhand and said technical knowledge and investment is important for the state. Chung Kwang Tien who led the delegation said there is a lot of scope to develop business relations between Taiwan and Uttarakhand.
Taiwan can help Uttarakhand in development of food processing industry and also provide technical assistance. Along with this, the raw material from here can be used in food processing units of Taiwan, Tien said. Taiwan and Uttarakhand can also work jointly in the field of electronics, Tien said and invited Rawat to visit Taiwan. The latter expressed his gratitude and said other avenues where Taiwan and Uarakhand can work together should also be explored.
Beverages & Food Processing Times
12/06/2014 16:04:03
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Vol. 7, Issue 06 - November - 2014
DAIRY NEWS
Fonterra joins hands with MFAT to enhance Dairy produc on in developing countries
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ew Zealand-based co-operative dairy Fonterra will be working together with the Ministry of Foreign Affairs and Trade (MFAT) to help developing countries increase their dairy nutrition knowledge and build economically viable farm systems to focus on food safety and quality. Through 'Framework for International Development in Dairy Excellence', Fonterra and MFAT will create programmes and initiatives for relatively undeveloped dairy industries to help them enhance their food security, knowledge and nutrition in emerging markets. As a part of the partnership, initiatives to increase on-farm milk safety and quality standards, raise farmer productivity and proďŹ tability, build cooperative governance, increase collection of milk and transport, and educational nutrition programmes with local communities will be undertaken by both the organisations. "New Zealand and our dairy industry have an important, global role to play in promoting dairy as a source of good nutrition and helping developing economies meet local demands." Speaking about the programme, Fonterra CEO Theo Spierings said: "New Zealand and our dairy industry have an important, global role to play in promoting dairy as a source of good nutrition and helping developing economies meet the local demands of their populations for dairy products. "We've been dairy farming and processing for over a hundred years, and sharing that expertise with others ensures a strong reputation for dairy quality and safety globally. This is particularly important in emerging economies where an increasing knowledge base and rising incomes sees an increasing number of consumers turning to dairy products." MFAT CEO John Allen said: "New Zealand is one of the best-performing agricultural nations in the world. That is why MFAT is seeking to use its expertise and innovation and that of Fonterra's to bring about development solutions. "We are pleased to be able to sign this Framework with Fonterra. It will allow MFAT to investigate potential future projects in areas like building the capability of farmers in developing countries, or enhancing co-operative models and business structures.
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Vol. 7, Issue 06 - November - 2014
FOOD PROCESSING NEWS
Danone to break joint venture with partner Rahul Narang Group
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early five years after Danone broke up with Britannia Industries Ltd, the French food and beverage maker is looking to part ways with its current joint venture (JV) partner, the Rahul Narang Group. Danone wants full control of the beverage brands Qua and B'lue, which are manufactured and distributed by two JVs—Danone Narang Beverages Pvt. Ltd and Narang Danone Access Pvt. Ltd. But as in the case of Britannia, a part of the Wadia group, Danone is headed for a legal battle with the Narang Group. On 9 October, Rahul Narang, promoter of the group, filed a petition in the company law board against Danone Narang Beverages under Sections 397 and 398 of the Companies Act, alleging mismanagement of funds, misconduct towards the company members and oppression by the firm in which Danone has a majority stake. Danone Narang Beverages manufactures markets beverages in India such as B'lue and Qua. Danone has a minority stake in other venture, Narang Danone Access, which distributes these beverages and other international brands such as Twinings Tea, Monster energy drink and Perrier
companies ended their 13-year partnership in 2009, with the Indian partner buying out the French food giant and gaining ownership of the Tiger brand of biscuits. The French company operates globally in four business segments—dairy, bottled water, medical nutrition and infant food—and is present in all of these segments in India. Danone Food runs the company's dairy operations in the country and is still relatively small, selling products in Mumbai, Delhi, Bangalore, Pune and Hyderabad. It also runs an equal joint venture with Japanese probiotic products company Yakult—Yakult Danone India Pvt Ltd.
sparkling water in India. According to the first person cited above, Danone and the Narang Group have been unsuccessfully negotiating valuations for the buyout of the brands by the French company for the last eight months. Qua
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and B'lue together had sales of Rs.100 crore in the last calendar year. It's clear that Danone wants to come in on its own in the beverage market. Danone entered India through a JV with Britannia Industries but the
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India's Organic Food exports s fled by Cer fica on Issue
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ndia's performance in the organic food export sector remains dismal, despite favourable climatic conditions and a heritage of organic farming. According to government estimates, the area under organic certification in India stands at around 4.72 million hectare, which is 2.6% of the total agricultural land of around 182 million hectare in the country. India's organic food exports account for a mere $224 million, which is about 0.35% of the $64 billion worth global organic food market. Demand is strong in both domestic and international markets. According to industry representatives, the organic food market in India is growing at around 15% annually while export growth is almost double at around 30%. States like Sikkim have taken a lead in promotion of organic foods but the sector remains plagued by complicated certification procedures, lack of technology, unavailability of organic pesticides
and manure, and lack of processing industries. However, the immense potential to grow in this sector hasn't gone unnoticed. It was recently announced that the Ministry of Commerce is planning to exempt organic processed food exports from bans even if the primary produce of that commodity is subjected to some restrictions. He added that a credible certification system will help in this. Awkward certification processes only benefit testing labs and third-party certification agents, and the additional costs are passed on to the consumer while farmers continue to get low prices. Unfortunately, “pure” food is seen as something exclusive when it actually should be the endeavor of the governments across the world to provide healthy food to the people and preserve the environment.
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Vol. 7, Issue 06 - November - 2014
CHOCOLATE NEWS
Why Chocolate Makers Are Uni ng To Fight Ebola
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he world's chocolate makers are coming together to fight the Ebola outbreak in Liberia, Guinea and Sierra Leone. As part of the World Cocoa Foundation, Mondelez International Inc., Nestlé SA, Starbucks Corporation, and others recently announced a $700,000 donation to combat the virus, which has already infected more than 9,000 people and killed at least 4,500 with no signs of slowing. The effort is more than philanthropic, as the outbreak could have a major impact on the chocolate industry. The vast majority of the world's cocoa is produced in West Africa. And though it comes mainly from Ivory Coast and Ghana, which have not been affected, that hasn't stopped a ripple effect of price increases that could have a long-term impact. “The market is watching the situation very, very closely,” said Jack Scoville, senior market analyst at Price Futures Group in Chicago, who focuses on commodities. The World Bank and IMF predict massive economic fallout for the affected countries, whose fragile economies had just started making positive gains after years of instability. Experts have also warned of an impending food crisis, and even neighboring countries with no reported cases have felt the impact of trade and travel restrictions. “It is impossible to know how the outbreak will develop,” said Ecobank commodities economist Victoria Crandall, who is based in Ivory Coast. “But even in the best-case scenario, it will take until the middle of next year before Ebola is brought under control, so the effects will be lingering.” In many cases, fear has been more powerful than the disease itself. “Fears over Ebola have disrupted pod-counting teams at major cocoa exporters, which have affected production outlooks for the 2014/2015 season,” Crandall said.
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Cocoa prices are up 15 percent in 2014. And as the industry approaches the main harvest seasons, the price has hit a three-year high. Before the outbreak, 2014 was shaping up to be a good year for cocoa, with promising weather conditions and high expectations for output. But in recent months observers have become more concerned amid growing travel restrictions and a dwindling workforce. “It's not in Ivory Coast. It's not in Ghana, either. But the thing is that a lot of temporary workers …coming in to pick the cocoa would be coming from some of the affected countries,” Scoville said, adding that it's also been difficult for
analysts, many of whom are based in Europe, to get into the region. “Who's going to go down there just to count a few cocoa pods?” Nestlé, the world's largest food company, with operations in Ghana, Ivory Coast and Nigeria, has restricted employee travel to the region and prepared contingency plans in case of an outbreak. “If it hits the Ivory Coast, we're going to have a standstill,” Nestlé chief executive Paul Bulcke said earlier this week, according to Bloomberg. “We have a system where we fix certain prices for certain times, but not too long, because we're not speculators, but to have stability in our cost.” “It has a potential to be a huge economic disaster for that part of the world,” Scoville said. “It's an important source of export earnings, and for the average worker it could be their [livelihood].”
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Vol. 7, Issue 06 - November - 2014
BEVERAGES NEWS
Tata Global Beverages Ltd. announcement to promote Ecological Agriculture applauded by Greenpeace
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reenpeace India welcomed the announcement made by Tata Global Beverages Ltd, which highlights its vision to promote ecological agriculture and Non Pesticide Management (NPM) in tea cultivation, under the project Sustainable Plant Protection Formulation (S-PPF). Tea consumers can now heave a sigh of relief as almost all the leading companies in the sector have committed to explore ways to eliminate pesticides from tea cultivation. Earlier this year Greenpeace had released its report "Trouble Brewing", highlighting the presence of pesticide residues in tea. Since the release of the report, Greenpeace had been engaging with the tea companies to commit to adopt an approach that will ensure pesticide free tea for the consumers. As many as over 40,000 people joined Greenpeace in its campaign asking the tea companies to clean chai now. “It is heartening to see one of India's leading tea companies spell out their vision for an approach that is based on rejuvenating the ecosystem. The first step to achieving this vision is TGBL's commitment to pilots in their associate
plantations in North and South India. Tata's commitment comes as a huge step for the Indian tea industry towards sustainability and global leadership." said Neha Saigal, Senior Campaigner, Greenpeace India. Since the launch of the Greenpeace report, major tea companies like Hindustan Unilever Ltd, Girnar Tea and Wagh Bakri have announced their commitment to support the phase out of pesticides from tea cultivation. Now with TGBL's commitment, it shows the willingness of India's tea sector to move away towards ecological agriculture. Greenpeace will continue to monitor the developments and will support the industry in moving away from the pesticides treadmill. "This movement of tea companies towards ecological approaches like Non Pesticide Management, is a victory for the people and consumers who deserve clean and pesticide free tea. We hope that taking cue from the tea sector the entire agriculture sector will move away from the pesticides treadmill and takes the ecological route in the coming future," said Saigal.
PepsiCo Unveils New R&D center in Dubai
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lobal drinks and food major PepsiCo has opened its new R&D center in Dubai, which is said to be the company's first such facility in the Middle East region. The move forms a part of the company's strategy to accelerate growth in emerging and developing markets across the globe. The new facility has a culinary center and test laboratories that will develop PepsiCo food and
beverage brands according to the local taste preferences in the region, Gulf News reported. It will collaborate with other PepsiCo R&D locations from across the world to share best practices. PepsiCo Middle East and Africa President Omar
Farid was quoted by the news agency as saying: "For competitive reasons, we are not going to discuss new brand introductions in the Middle East or specific timing. "The investments that we have made to transform our global research and development capabilities are paying off and have resulted in a wave of successful innovations across the company - eight per cent of PepsiCo's global net
revenue comes from products launched in the past three years." During 2013, the company generated $23bn in net revenue which is an increase from $8bn generated in 2006.
Manipur all ready to tap potential in Food Processing Sector
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he northeast region is rich in natural resources making it an extremely suitable place for the growth of Food Processing Sector. Recently, a food expo was held in Imphal to encourage entrepreneurs and food processing units and give a boost to the sector. A large number of food processing units from Manipur recently showcased their produce at Imphal Food Expo held at Iboyaima Shumang Leela Shanglen. "I get profit from this expo and also Directors and Ministers visited here and taught us about the use of preserving food/fruits so we get knowledge from them. So I think it's very good," said Owner of the food processing unit Naorem Arujayenti Devi. "There are lots of fruits and vegetables available here but people don't know how to preserve so it gets spoilt and wasted so I started preserving and made the different items out of it," added an exhibitor,
Vidyalakshmi Devi. The northeast region produces vast varieties of fruits, vegetables and other crops, making food-processing industry not just an opportunity but a necessity. Besides reducing wastage of agro products, this will give a huge boost to the state's economy, if the products are marketed properly. The government has also been encouraging self-help groups and entrepreneurs to start their own food processing units. During the event, loans were distributed by National Mission on Food Processing (NMFP) to selected beneficiaries of the food processing programme 2012-13. There is a huge scope of growth in the food processing sector in Manipur, given the state's conducive environment for production of fruits and vegetables. The sector possesses major potential for export and generation of employment as well.
Govt to ease control on organic food export
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he Union government would like to move towards lifting a ban on export of organic agricultural products and their derivatives.
On the sidelines of the 4th National Conference on Organic Farming organised by The Associated Chambers of Commerce and Industry of India, A K Tripathy, joint secretary, department of commerce and industries, said, “We are trying that there is never a ban on organic processed food export, even if the primary produce of that commodity is subjected to some restrictions.” While export of primary organic agricultural produce is allowed, there are restrictions on a host of other commodities, such a pulses and edible oils. The ban has been imposed primarily because of differentiation in quality specifications and the lack of a credible certification system.
“Unless world-class certification agencies are established, the credibility of India's organic food exporters would remain in question outside the country. But once domestic standards are made compulsory, the supply of quality goods for exports will also improve significantly,” said Tripathy. The global organic food market is estimated at $64 billion. India's share is 0.35 per cent. Santosh Sarangi, chairman of the Agricultural and Processed Food Products Export Development Authority (Apeda), said: “One major challenge for India is to maintain the integrity of an organic certification system.” Apeda says it is working to expand the portfolio of organic products available for export. It is working to, among other things, add aquaculture, textiles and livestock to the category.
Russia looking for coopera on in food processing with India and business interests in Russia and their Russia's Rostov Region is looking at greater cooperation with India and is eyeing investments from Indian companies in several sectors. This month, government and business representatives of the region made a presentation at the Indian Embassy in Moscow on business and investment opportunities in the region. Minister of Economy of Rostov Region Alexander Levchenko led a high-level delegation of the regional administration, companies and universities of Rostov region to highlight the opportunities for Indian business in Rostov. The presentations covered power, machine building, engineering, food and beverages, industrial park, pharmaceuticals and education, according to the Indian Embassy. Presentations were also made by Indian companies, which highlighted their activities
Beverages & Food Processing Times
interest in expanding their activities in Rostov. Ambassador of India P.S.Raghavan highlighted the strong India-Russia effort to significantly step up bilateral economic cooperation and said the dynamic economic growth of Rostov in recent years generated new opportunities for Indian business to engage with the region. Dairy and agricultural products are sectors of particular promise. Levchenko expressed the interest of the region in enhancing engagement with Indian companies and emphasized the prospects of cooperation in food processing, agricultural and consumer goods. The Indian Embassy said it would “continue to facilitate such interaction of different regions of Russia with Indian business representatives in Russia.”
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Vol. 7, Issue 06 - November - 2014
BEVERAGES NEWS
WORD WITH MD SATOL CHEMICALS FOR EFFECTIVE ECONOMIC CLEANING & HYGIENE
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Atol chemicals established in the year 1999 having Head Office in Mumbai with manufacturing plant in Parwanoo Himachal Pradesh awarded ISO Certification 9001-2008 pointing to aim CLEANLINESS WAS NEVER SO CLEAN by using Satol Chemicals with a motto QUALITY WITH ECONOMY. What are the sectors where Satol Chemicals dealing Satol chemicals taking care in the following division & ready to solve any specific problem for de - scaling cleaning hygiene sanitation / disinfection chain conveyor lubrication CIP bottle washer. 1] Breweries & beverages 2] Food industries 3] Fisheries & Poultry farm including processing unit 4] Ice cream, dairy, bulk milk cooler & chilling center 5] Complete house keeping chemicals range 6] Cooling tower. Satol Chemicals has come up with the solution for cleaning & hygiene having following properties 1] sequestraint , 2] wetting , 3] dispersing , 4] emulsifying 5] suspending properties 6] Disinfection , 7] de scaling What are the product do you have for food industries. For food industries we are having various product FOR CLEANING HYGIENE DE SCALING LUBRICATION, COLD SANITATION ready made and & specific client based need. We observe that cleaning of equipment and processing section is not up to the mark with the traditional cleaning system using CAUSTIC AND NITRIC ACID Therefor a number of plants are using cleaning additive to increase the rate of reaction of caustic & nitric for better performance. To over come above situation Satol Chemicals has developed product / booster / additive to nitric acid & caustic for desired result with mild sanitation effect. Are these product effective Yes these products are highly effective in achieving better quality at reduced rate, A number of food industries are already using these product satisfactorily. After using Satol Chemicals food industries - manufacturing plants are benefited as follows, 1] Reduction in SPC / TPC below 500 additive and sanitiser Coliform Almost Nil 2] Reduction in Scaling by using Satol De scaler with or without Nitric Acid 3] Reduction in acid circulation cycle. 4] Reduction in Time, Steps, Water, Heat, Electricity, Labor, Handling of material 5] Reduction in chemical consumption & storage space. 6] ETP load & odour reduces 7] MBR Time increases , 8] Satisfaction in running time increases . 9] Quality of cleaning & Hygiene increases as per MNC Standard 10] Life span of rubber, gaskets increases 11] over all cost is saved 12] Satol chemicals are re-use-able & dosing depends on soil & products. 13] specific attention on any critical cleaning problem as per requirement. Hope you are supplying chemicals in breweries & beverages. Yes beverages industries are using our product where as we have maximum share in India for breweries , 1] For bottle washer- as caustic additive, 2] For CIP cleaning & disinfection 3] For chain conveyor lubrication , 4] acidic and alkaline cleaning 5] Foam cleaning chemicals, 6] beer stone removing chemicals 7] pasteurizer anti slime formation 8] disinfectant / sanitiser, fumigation How do you co relate food industries with institutional - house keeping product. Yes we co relate both the sectors for cleaning & hygiene that is a need of the hour. These sectors are suffering with effective and economic chemicals for maintaining quality. Satol assure both the quality and economy concern Housekeeping and food industries. In housekeeping we have complete range of products as WASHROOM CLEANER , MANUAL FLOOR CLEANER , GLASS CLEANER , FURNITURE POLISH , ROOM FRESHNER , TOILET BOWL CLEANER , AUTO FLOOR CLEANER, ADHESIVE REMOVER, HEAVY DUTY DEGREASER , GERMICIDIAL CLEANER , COACH CARE, KITCHEN CARE , CARPET CARE, ROOM CARE, STAIN REMOVER , SCALE REOVER, ODOUR REOVER, DISINFECTANT, PAINT REMOVER, INK MARKER REMOVER, AUTOMMOBILE CLEANER, PASTE CLEANER, MULTIPURPOSE CLEANER, FURNITURE CLEANER .
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Vol. 7, Issue 06 - November - 2014
AGRO NEWS
Indian food export boom targets African markets
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ndia became the world's seventh-largest exporter of agricultural products in 2013, overtaking Australia, according to the US Department of Agriculture (USDA) In terms of net exports, India is now the world's sixth-largest supplier, with net exports double those of the EU28. The Indian government's support for both production and exports has contributed to a rapid growth in shipments, which are increasingly destined for developing countries, including Africa's least-developed nations such as Rwanda. India has in turn become a very important player on the global market, especially for rice, cotton, sugar, and buffalo beef. In addition to these products, India has also become a sizeable exporter of soybean meal, guar gum, corn, and wheat, as well as a diverse range of other products. India's export growth over the past decade has been the highest of any country, with an annual rate of more than 21%. In comparison, Brazil's annual exports grew by 15% over the past decade, China's rose 12%, and the US increased by 9%, USDA data shows. India's farm exports to date in 2014 have remained roughly at last year's record level. From January-May, rice exports were up 10%, compared with this time last year, cotton up 2%, bovine meat (buffalo) up 18%, and wheat up 75%. Soybean meal, guar gum, and corn exports, however, are down from the same period last year. One of the drivers behind India's export growth has been the dramatic growth in government supports provided to agriculture, particularly for wheat and rice. Based on official sources, the USDA Foreign Agricultural Service office in New Delhi estimates that the Indian government's total support for agriculture has risen from $68 billion in 2009/10 to $85 billion in 2013/14. Furthermore, the new government budget recently released indicates that support is likely to reach a new record high in 2014/15, despite the election of BJP Prime Minister Narendra Modi, with his more free-market economic and political orientation. In addition to subsidising irrigation, electricity, and fertilisers, which boosts production for many export crops such as cotton and sugar, the Indian government provides direct price support to wheat and rice, among other commodities. The Indian government purchases rice and wheat directly from farmers at minimum support prices (MSPs). The MSPs for wheat and rice have increased significantly over the past six years, with rice up 75% and wheat up 40%, despite government reforms. These surging MSPs have contributed to everexpanding production and booming government
stocks. Exports of these grains have in turn grown, in part, as a result of the government release of these stocks on the domestic market, which lowers prices, making Indian supplies more competitive. Open market sales depress wheat prices more than rice prices due to the volume differences. Exports have also been bolstered, in the case of wheat, through direct exports by the government from government stocks at prices below acquisition and transport costs. Exports have been particularly strong to least developed countries (LDCs), with India becoming the top supplier in 2013 with USD5.2 billion and with a rapidly growing agricultural trade surplus with these nations of USD2.4 billion. The leading LDC markets for India are in South Asia but exports to Sub-Saharan Africa are on the rise, nearly quadrupling over the past five years. India exports agricultural products to roughly 40 LDC markets, with impressive growth in nearly all over the past few years. Leading LDC markets include Bangladesh, Benin, Liberia, Senegal, Nepal, and Yemen. Over the past five years, India's shipments to LDCs have grown at more than double the rate of Indonesia's (314% vs. 133%), the secondfastest growing exporter to LDCs. By comparison, exports from the US to LDCs over the same period increased just 28%. Agricultural trade growth with LDCs has certainly not been a two-way street. India enjoys a very large agricultural trade surplus in these markets, exporting more than USD5 billion in 2013, while importing only USD1.9 billion. Indian exports to LDCs have grown more than 300% over just the past four years while imports have increased only 20%. India enjoys a surplus in the vast majority of LDC markets, with the largest trade surplus in Bangladesh. India also has sizable and growing surpluses with several Sub-Saharan African countries.India is a major exporter of cotton, soyabean meal, maize, and sugar to LDCs. The increase in Indian government support for rice and wheat has driven up production and stocks, despite supply disruptions when there are arbitrary bans. As a result, these grains now lead all products in export growth to LDCs, soaring from USD83 million in 2010 to USD2.4 billion in 2013. Wheat exports, for example, have benefited from direct export support in the form of open market sales from government stocks, which have led to increased available domestic supplies, lower prices, and, ultimately, greater wheat exports. In the 2013/14 Indian fiscal year (April/March), the government released 5.8 million tonnes of government-owned wheat to the market. That amount is expected to grow significantly in the
current fiscal year. Higher support prices for rice and wheat, as well as other types of direct support, have spurred production, stocks, and exports. From 2011 to 2012, India doubled total rice exports to LDCs in just one year, becoming to the world's largest rice exporter, a position it has maintained since 2012. Furthermore, the Indian government currently holds more rice in stocks than the total combined exports last year by the other leading suppliers: Thailand, Vietnam, Pakistan, the United States, Burma, and Cambodia. Indian rice exports have become increasingly important to Sub-Saharan Africa. Not only may the rice market in Benin be affected by the surge in rice imports but neighboring Nigeria has reportedly seen large-scale illegal imports from Benin that have circumvented Nigeria's high import duties, due to porous borders. Senegal has also seen a surge in low-priced imports from India. In fact, dozens of the LDC markets have experienced very rapid growth in Indian rice shipments, which overall have increased from USD78 million in 2009 to USD1.8 billion in 2013. This increase in Indian exports has come at the same time as these countries are seeking to increase their own production for rice for greater self-sufficiency. Export bans can affect LDCs that are net food importers. India has frequently used exporbans, particularly for wheat, rice, and cotton, over the past several years to control internal prices. India has also used export restrictions for a number of other commodities including pulses, vegetable oils, sugar, and onions. The Indian government has shown little hesitation in shutting off exports if it believes
that domestic prices are increasing and it will be more difficult to procure supplies at the minimum support price. Export restrictions on rice by major global suppliers, including India, in 2007 were important factors leading to record global prices in 2007 and 2008. Rwanda India's critics also believe much of the export surge has been boosted by the food security programme that it is now vigorously defending at the WTO. Rwanda's trade minister, Francois Kanimba, said his country has seen a surge in food imports from India at improbably low prices. This has complicated Rwanda's own efforts to build food security, despite an impressive average agricultural growth rate of 4.9% per annum since 2000, following recovery from a bloody civil war in the mid-1990s. Two-thirds of the Rwandan labour force works in agriculture, and coffee and tea remain its most valuable exports, while rice production has risen over recent years. Agricultural commodities from India such as rice and sugar had been reaching Rwanda “at such low prices [that] you are left wondering if these are really global market prices, simply explained by the competitiveness of the Indian economy,” Kanimba told the Financial Times. In an attempt to fight back, Rwanda increased the taxes on rice imports in March following the example of other African countries such as Nigeria. So India may increasingly find that its traditional allies might not continue to support its battles with Washington on world farm trade reforms, particularly when it chooses to behave like one of those large developed food exporters it so often lambasts.
AMIRA Rice will be available online, deal with snapdeal.com
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mira Nature Foods Ltd a leading global provider of packaged Indian specialty rice, today announced that it has entered into a strategic partnership with Snapdeal.com, India's largest online marketplace. This historic agreement with Snapdeal makes Amira the first rice brand to be available on an online platform in India. Snapdeal.com is the ideal platform for Amira to capitalize on the significant growth of internet users across India. According to Cisco's most recent forecast in its Visuals Networking Index (VNI), India's internet users are projected to more than double to 526 million by 2018 from 213 million in 2013.1Snapdeal.com is India's largest e-
Beverages & Food Processing Times
commerce marketplace with over 20 million members, which represents one out of every six internet users in the country. “We are very excited to secure this partnership with Snapdeal.com, which enables us to participate in India's robust ecommerce growth and bring Amira's premium basmati rice to even more consumers,” said Karan A. Chanana, Chairman and Chief Executive Officer of the Amira Group. “We look forward to continuing to expand Amira's distribution around the world and across multiple sales channels.” Amira's agreement with Snapdeal.com will allow customers to purchase a wide range of the Company's premium products online.
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Vol. 7, Issue 06 - November - 2014
FOOD SAFETY NEWS
Vincent Doumeizel appointed LRQA Vice President – Strategic Marke ng Food and
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ppointment strengthens global food team and demonstrates LRQA's commitment to the ongoing delivery of best in class food safety assurance services worldwide Vincent Doumeizel has been appointed Vice President - Strategic Marketing Food and Beverage at LR Management Systems (LRQA) with effect from October 1st 2014. Joining from Bureau Veritas where he led the global food sales and operations activities, Doumeizel will utilise his strong links with and knowledge of the industry to support LRQA's ongoing commitment to the sector. In his new role, Doumeizel will focus on further strengthening the strategic direction and reach of LRQA's global food business, through the delivery of existing services and a wider portfolio designed to meet the needs of the thousands of food sector organisations worldwide. Doumeizel will report to Simon Batters, LRQA Head of Strategic Marketing. “LRQA is well known within the food safety arena for their technical expertise, excellent client relationships, strong heritage and sector specific focus. With over 5000 food sector clients – from the world's best known brands, to some of the smallest suppliers in emerging markets – Vincent's appointment highlights LRQA's commitment to delivering the best client experience, both in terms of service, innovation and technical excellence,” said Batters.
Beverages & Food Processing Times
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Vol. 7, Issue 06 - November - 2014
FOOD SAFETY NEWS
Quality Issue takes Food safety FSSAI approached to formulate all the way to the farm standards to authorize the production and supply F of camel milk
rench major Danone Foods & Beverages India complains that it cannot source nearly 90 per cent of the milk its competition sources in the country. The reason: quality. To keep a tight quality check, the food company works with select suppliers, besides engaging in direct distribution – where it transports products from its factories to kirana stores in its own trucks. From dairy to coffee and sauces to poultry products, the variety of food making it to your table from international food companies and retailers is only increasing. And so the concern over locallysourced ingredients that need to be, for instance, hygienic, free of microbes and within permissible limits of heavy metal or pesticide residue. Local food majors see the sourcing problem quite differently. Ensuring consistent food quality has more to do with the effective management of the supply chain, they say. Especially since farms may be smaller and more scattered in India than in international practice. In fact, decentralised small farms have their advantages, they add, in terms of the mass use of chemicals and antibiotics in food products. In the dairy context, Danone India-head, Jochen Ebert, said that sourcing was expensive and challenging, but unavoidable, given their rigid standards for milk sourcing and supply chain management. Tough standards become critical, since the quality of food directly affects consumers' health. Unacceptable residues in a final product consumed everyday could lead to health concerns. Companies are keen to plug all quality loopholes. Swiss food major Nestle India, for instance, has been working with local dairy farmers since 1961, offering them training and technical assistance to improve the quality of milk. Across Punjab, Haryana and Rajasthan, they also support sustainable farming practices.
Nestle works with over one lakh milk farmers collecting about 300 million kilograms of milk every year. Rs. Sodhi, Managing Director, Gujarat Milk Marketing Co-operative Federation, which owns the hugely popular Amul, observes that scattered milk production is the challenge that international companies grapple with in India. It takes time and investments to build this supply chain, besides familiarising themselves with the practice of collecting milk from millions of farmers.
Unlike the western world, where a farmer has 400-500 buffaloes on an average, an Indian farmer owns just one or two buffaloes. Chandra Bhushan, Deputy Director General with the Centre for Science and Environment, says that the decentralised milk production model followed in India has distinct advantages. There is less chemical use in this model, compared to controlled cattle farms. “For example, the poultry industry in India follows the European model and the quality issues are the same. High amounts of antibiotics are found in chicken in the US as well as here,” he alleges, even as local industry contests that observation. But since the Indian consumer is not one that can be ignored, retail-majors like Walmart India are working with small and developing businesses on food safety. A key strategy involves reducing risk early in the food supply chain, using a scalable approach to food safety. This allows them to assess their basic and intermediate levels of food safety against established benchmarks, as they grow.
Two months passed on s ll majority of Food Vendors yet to get registered
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t has been learnt that only 550 eateries have got licences in Kapurthala district while about 3,200 vendors got registered with the department. Even as two months have passed since the deadline for food registration and licensing expired, more than 40% vendors in the district are yet to get registered under the Food Safety and Standards Act, 2006, which has been made
mandatory for selling eatables. The state government's deadline of August 4, as notified to all district health officials, to assure the registration of food sellers has expired since. But several vendors are still unmindful to the registration. Under the Food Safety and Standards Act, the Food Safety and Standards Authority of India has made it mandatory for all food business operators, including producers, processors, transporters or traders of food items, to get license and registration certificates.
A food seller with an annual turnover of up to `12 lakh has to pay `100 per year to get registered, while food business owners who have an annual turnover of over `12 lakh have to get license by paying `2,000 per annum. To make easy the process of registration, the authorities concerned had recently started an online facility at the Kapurthala suwidha kendra to get registered instantly.
An applicant can also avail the online facility from his home by logging on to ' and get registered. After this, the applicant has to fill the form for registration or issuance of licence and upload scanned copies of the required documents and submit fee. In Kapurthala district, only 110 people have availed the online service since it was started. Those who will fail to register their food outlets would face fine up to Rs. 6 lakh or six-month imprisonment.
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amel milk has emerged as a new superfood with miraculous health benefits. It is known to have three times more Vitamin C than cow's milk and is ten times higher in iron content. Recently, the European Union allowed the import of camel milk in their region. In the Middle Eastern countries, camel milk production has become a booming trade. While camel has gained popularity globally, India is now warming up to the idea of camel milk production and consumption.(More: Unbelievable goodies in camel milk). The Food Safety and Standards Association of India (FSSAI) is yet to frame standards for the sale of camel milk across the country although it is being produced and sold locally in certain areas. Bikaner based National Research Centre on Camel (NRCC) supplies camel milk as well as other products like delectable Indian desserts, butter, ghee and paneer. According to the research center, "Camel milk and its products were sold for Rs. 2.96 lakh during the year 2010-11 from the milk parlour of the Centre." The NRCC had approached FSSAI to formulate standards that could authorize the production and supply of camel milk and associated products.
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The Department of Animal Husbandry, Dairying and Fisheries has requested FSSAI to frame suitable standards for the production and sale of camel milk. The Supreme Court had already ruled in favour of camel milk production and consumption way back in the year 2000. Today, the scenario seems to be shifting in favour of nationwide availability of camel milk. FSSAI has set up an expert group to set standards for the sale of camel milk as a food product. Once the FSSAI gives a green nod, the states of Gujarat and Rajasthan can collectively produce 1.5 litres camel milk per day. In Gujarat, the project will primarily be vested with the Gujarat Cooperative Milk Marketing Federation. GCMM is the country's largest dairy cooperative and markets its products under the Amul brand. The GCMMF is of the opinion that once the project is approved by FSSAI, they can get the production going within six months at their Kutch site. They are also hoping to make camel milk available in the country starting from Ahmedabad. The Gujarat government has already sanctioned Rs.1 crore for the project.
KFC, Yum! Dragged DownBy Chinese Food Safety Scandal
FC in China used to be an unstoppable juggernaut. Now it's retreating over food safety. Yum! Brands, the parent company of KFC, Taco Bell, and Pizza Hut, reported third quarter earnings on Tuesday afternoon and missed consensus analyst estimates. Yum! posted earnings per share of $0.87, narrowly lower than the $0.88 consensus, and revenue of $3.35 billion, also below the $3.45 billion estimate. The main problem was in China, where overall system sales fell 9%, and same store sales sank 14% in the wake of a July food safety scandal. Workers at KFC and McDonald's MCD +0.29% meat supplier Shanghai Husi Food Co were shown in a TV report reusing meat that had fallen to the factory floor, as well as mixing fresh and expired meat. As Chinese regulators shut the doors at Husi, both American chains apologized and quickly announced that they had switched meat suppliers. But the episode has driven Chinese consumers away from KFC restaurants, just as another scandal did in 2012. Yum! is especially reliant on KFC's huge presence there, as China accounts for more than half of the company's worldwide sales.
Beverages & Food Processing Times
Yum! said the scandal “significantly impacted China sales” and led to the company to reduce its full year earnings per share growth projection from 20% to just 6-10%. “China sales are on the path to recovery and we expect to develop at least 700 new restaurants in China this year, which we're confident will ultimately deliver high returns as we further capitalize on the world's fastest growing consuming class,” Chairman and CEO David C. Novak said in a statement.
A bright spot: Taco Bell continues to lead Yum! at home. U.S. same store sales grew 3% at Taco Bell, driven by its new breakfast offerings. Meanwhile, KFC and Pizza Hut same store sales in the U.S. were flat and down 2%, respectively. After falling 2.3% in trading during the day, Yum! shares dropped 0.5% after hours on the news.
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Vol. 7, Issue 06 - November - 2014
BAKERY NEWS
The Magical Chocolate Experience
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hAt Is It ABOut ChOCOLAtE thAt CAn
MELt thE hEArt? Chocolate by itself is that magical element that can heal most wounds from a broken heart to a scrapped knee. Chocolate is the dessert of choice world over, and the demand for quality chocolate is only growing. The Indian consumer is becoming choosy, aware of the differences in the varieties of chocolates available. The palate of the Indian consumer is slowly opening to world trends, an exciting time to be in the food business, when the customer is not only king but also thinks of himself as the next Masterchef judge. While it is an exciting time to be making chocolate, it's also incredibly challenging to create a work of art that shines and sparkles, with instant recall in the customers' minds. When combined with Puratos' superior expertise, your chocolate statements are then
raised to a work of art that allows your creation to sparkle both aesthetically as well providing that distinctive mouth feel that hits the spot. Puratos' factories worldwide coupled with quality beans and a refinement process that has evolved over years means that Puratos' adds that extra something to their whole chocolate range, Whether it's the Compound Chocolate or the single Origin chocolate that bears the Puratos' brand name, the small baker to the Industrial Baking companies can be sure of consistent results and standardized quality from start to finish. A quality that effortlessly translates to the decadent mouth feel, distinctive taste and rich finish that keeps wowing customers bringing them back for more. Backed by their extensive R & D, Puratos' commitment to pushing the envelope in terms of customer experience ensures cutting edge chocolate experiences that surprise and move beyond the ordinary. Puratos' specialized refining process leaves anyone eating Puratos' compound with a
mouth-feel that is reminiscent of real chocolate leaving customers and consumers relishing the wow factor. Whether in use in small bakeries or large industrial production, Puratos has been the partner of choice both based on its R & D and its superior product range within the chocolate patisserie range which includes the Tegral Satin Moist Dark, the Tegral Satin Moist Dark Egg Free, the Tegral Brownie Egg Free, the CARAT range, the Belcolade range of Coverture Chocolates, Cremfil Orange, Lemon, Irish Cream and Vanilla, Brillo Cocoa, Easy Sponge Cocoa and Easy sponge Egg Free. Meet our latest entrants, Tegral Sponge Egg Free Cocoa & Carat RTU Ganache Hazelnut The Tegral Sponge Egg Free Cocoa sponges seamlessly combine a rich chocolate taste with a moist mouth feel and light aerated texture. Tegral Sponge Egg Free Cocoa can be punched without any problem, smoothly rolled, and offer a fine crumb texture that ensures good strength in the cake with good syrup
Kellogg's CEO to meet with United Biscuits
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ellogg Co.'s CEO will head to London to discuss a purchase of United Biscuits in a deal worth an estimated $3.2 billion, according to the Wall Street Journal. The deal is not set in stone. United Biscuits is said to be pursuing a "dual-track" to maximize
the cash it can raise. Under a dual track a company makes plans for a possible initial public offering while simultaneously preparing to sell the company. Rival Burton's Biscuits and Turkish biscuit company Ulker Biskuvi Sanayi are also said to have moved to the final stage of bids for United Biscuits. A Kellogg's purchase of United Biscuits would make sense on lots of levels. First there's the "synergies." Kellogg, which makes Pop Tarts, already has experience in manufacturing little cake-like snacks like United Biscuits' Jaffa Cake. Second, Kellogg is likely impressed with how well rival Nabisco has done with BelVita biscuits, and wonders if it could do the same with United Biscuits' McVities Digestive biscuits. And third, as we've noted before, little snacks are one of the global food industry's growth areas and do well in largely untapped markets like the Middle East.
Beverages & Food Processing Times
absorption. This Tegral Sponge Egg Free Cocoa ensures consistent results time after time with guaranteed peace of mind and an excellent mouth feel bringing customers back again and again. In an effort to add to the overall customer experience, Puratos' addition to their range is the CARAT RTU Hazelnut Ganache. This easy to use Ganache is made from the finest chocolate and nuts with Belgium & Turkish expertise, that shine while adding a distinct hazelnut flavour. Easily used in layer cakes and praline, the CARAT RTU Hazelnut Ganache also adds the special something to mousse cakes, cream cakes, choux pastry, donuts, brownies and pies, while increasing the shelf life of the product. Puratos will be showcasing these and many more products as part of the Puratos pavilion at Bakery Biz, World Trade Centre, Mumbai. Stand number: 107-108; Date: November 19th 21st November 2014.Visit us, to be part of the magical experience!
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Vol. 7, Issue 06 - November - 2014
FOOD PROCESSING NEWS
Academic's Publica on Recognised as a Top Twenty Food Book
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publication co-edited by University o f Wa l e s Tr i n i t y S a i n t D a v i d (UWTSD) academic Dr Emma-Jayne Abbots, based in the United Kingdom, has been named one of the top twenty food books by the sustainable food-based organisation Food Tank. Food Tank is an American-based nonprofit organisation focused on building a global community for safe, healthy, nourished eaters. They spotlight environmentally, socially, and economically sustainable ways of alleviating hunger, obesity, and poverty and create networks of people, organisations, and content to push for food-system change. Food Tank has selected twenty books that entertain, inform, and reaffirm the importance of food and agriculture. From sustainable seafood to ethical eating to field guides for food activists, the books highlight innovative and creative methods that are creating a better,
more sustainable food system while educating and informing eaters and consumers. One of the books selected is entitled 'Why We Eat, How We Eat: Contemporary Encounters Between Foods and Bodies', which has been edited by UWTSD's Dr Emma-Jayne Abbots and Dr Anna Lavis from the University of Birmingham. This book explores the intersection between food and body and examines how eating draws together people, places and objects that may never tangibly meet. Its multi-disciplinary approach to how and why people eat presents a timely and important contribution to current critical debates about people's food choices. Dr Abbots has also contributed to two other books in the list, 'Food Between the Country and the City' and 'Food Consumption in Global Perspective'. Dr Emma-Jayne Abbots is a lecturer in Social/Cultural Anthropology and Heritage at UWTSD's Lampeter campus. She is a political and economic anthropologist, and her teaching and research interests focus on questions of ecological, cultural, social and economic sustainability; the cultural politics of food; materialities and material culture; the body and biopolitics; and the (re)production, representation and mediation of knowledge. Dr Abbots has also published on the themes of food safety; food, care, intimacies and kinship; gender and generations; migration and transnationalism; gift and exchange; space and architecture; celebrity chefs; and competitive eating. Dr Abbots said: “The book addresses a number of critical themes such as food security, health and obesity, and environmental sustainability. It has received excellent academic reviews but this recognition by Food Tank is especially welcome.” The authors and editors that have contributed to the top-twenty list make up some of the world's leading experts on food justice and sustainable eating. Food Tank hopes the facts and information in these books will not only inspire people already involved in the food movement but also encourage readers to share and educate others.
Arla pushes for industry collabora on to include dairy products in food aid Arla Foods Ingredients has stressed the importance of including dairy products in emergency food programmes, and has called for industry collaboration to make it a reality. The company said that dairy products are usually not included in programmes such as the UN's world food programme, which works on tackling food problems in developing countries, because of cost-related concerns. Arla is currently funding research on the
operate in every region that benefits from aid initiatives like the world food programme. "Dairy ingredients can be used with proteins of other sources to create food aid products that are rich in nutrition." "This means the global dairy ingredients industry must stand together to make sure we can deliver affordable, high-quality products in every geography touched by these programmes.
benefits of whey protein to show that dairy ingredients are affordable and superior because of their nutrition density. This means they can be used in smaller quantities compared to alternatives such as vegetable proteins. In addition, dairy ingredients can be used with proteins of other sources to create food aid products that are rich in nutrition. However, Arla has said that there is a need for the industry to come together. Arla Foods Ingredients senior R&D manager Henrik Jørgen Andersen said: "Even though we are an international business, we don't
"Consequently, only if other major dairy ingredients companies join us in this effort can we succeed in persuading the organisers of food aid programmes that our products have a key role to play in the war on hunger. The company recently showcased its research at the International Whey conference in the Netherlands, where it said that ingredients like whey and permeate are suitable for use in ready-toeat products that are designed to address moderate malnutrition. They are typically produced as a paste that is packed with nutrients and is easy to consume.
Delhi gets its first mul ‐brand frozen food home delivery service, 'Frozone' WESTCOAST Group Ties up with Baskin Robbins, Zorabian Chicken, Ice Cream Works, McCain and more
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ESTCOAST Group, a leading frozen food products distribution company in the Indian retail market has now announced its new unique offering – 'Frozone' – a multi-product multi-brand frozen food product eStore offering convenient home delivery in Delhi. Offering a wide range of products spanning seafood, icecream, finger foods, Indian breads, and the company has tied up leading brands such as Baskin Robbins, Zorabian Chicken, Ice Cream Works & McCain amongst many others to offer a multicategory package to its Delhi customers. Adding more product categories and brands is been actively looked into to offer a good choice to the customer. With its proven experience in handling and managing effective distribution of frozen food products, WestCoast believes of it offering a great value-proposition to its customers. The
USP being 'frozen food, delivered frozen' it's but natural that all the products are guaranteed to be stored and transported at -180 Celsius, till its delivered at your doorstep, to ensure that the quality is maintained. Speaking about the launch Mr.Shivam Gupta, WestCoast Group said, “Attempts are been
made by a few e-retailers to deliver frozen food products t o e n d consumers. Realizing the a d v e r s e impact the b r a n d i s subjected to owing to nonadherence to established practices of handling frozen food, it was felt that we should bring-in our experience and expertise to the growing e-retailing business in the Indian market”. Convenience – of ordering, shopping and delivery, is top-most on the mind of today's c u s t o m e r. We i n t e n d t o o ff e r m a j o r
Beverages & Food Processing Times
convenience factors at every stage of the customers buying effort, to make frozen food shopping a most stress-free experience in Delhi. This effort can be termed as a good combination of our expertise, our products, great offers and leading brand partners across frozen food categories. It's just a phone call or a click away to delight our customers, including on Sundays.” Whether it is Honey Nut Crunch, Very Berry Strawberry or Missisippi Mud– there is something for all lovers of Ice creams, Potato fries, Seafood, Chilli Garlic Bites, Cheese Jalapeno Nuggets, will keep one salivating for more. Those don't enjoy cooking but want yummy dishes that are ready to eat can choose from a range Parathas and seafood that can be ordered 24 x 7 online or by phone complimented with special offers.
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Vol. 7, Issue 06 - November - 2014
FOOD SAFETY NEWS
SCR and Nestle open Dairy Farm Ins tute in China
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attle management and monitoring systems provider SCR Engineers is collaborating with Nestle to set up the Nestle Dairy Farming Institute (DFI) in China. The institute is being set-up to support the rapid development of a dairy farming industry in China. It will train dairy professionals and students about all aspects of modern dairy farming. DFI that covers an area of over 600,000m² is located in the Heilongjiang province of China. It comprises working farms of different sizes to help farmers grow their farms in a planned manner. It also has an academic centre with classrooms and laboratories. Every individual cow involved in the project will be monitored by SCR. The company will also
manage all cow monitoring-related data, which will give farmers real-life exposure to advanced health and heat detection management concepts and workflows. Speaking about the collaboration with Nestlé, SCR CEO Yariv Avisar said: "We are very pleased to be cooperating with Nestlé and our other partners to improve Chinese dairy industry standards by standardizing procedures, training professionals and improving milk quality and production. We are certain that SCR's best-inclass cow monitoring solution will contribute greatly to achieving these goals.” The DFI was officially opened on 15 October and will also provide training and courses in farm management using the company's monitoring solutions.
Swiss chocolate giant to set up manufacturing unit in India
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wiss chocolate giant Barry Callebaut is mulling over setting up a manufacturing unit in India, local media reported Friday. "India is a very important market for Barry Callebaut. We are looking at having a manufacturing plant in India and we are progressing on the plan," Barry Callebaut's Asia Pacific vice president Denis Convert was quoted by the media as saying in Mumbai.
The 5.2 billion U.S. dollars worth Swiss chocolate maker currently has a commercial office in Mumbai. "India is still one of the lowest chocolate consumption markets. But it is expected to see an annual increase of 15 percent in consumption in future," the company's managing director India, Dhruv Bhatia said.
For updated news everyday logon to www.agronfoodprocessing.com
Beverages & Food Processing Times
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Vol. 7, Issue 06 - November - 2014
QSR INDYSTRY NEWS
Indian QSR Industry I
Food processing industry now formed an important segment of the Indian economy in terms of contribution to GDP, employment and investment, and proved to be a major driver in country's growth in near future. FPI contributes as much as 9.0 to 10.0 per cent of GDP in agriculture and Manufacturing sector and in the last five years, FPI sector has been growing at an Average Annual Growth Rate (AAGR) of around 8.6 per cent as compared to around 3.8 per cent in agriculture and 7.7 per cent in manufacturing. To make it more effective I believe, it important to make Food processing an "autonomous body", like Amul, Pepsi, Hindustan Liver, and the government should support it. Farming and value addition were the two main necessities in FPI sector and this should be developed in the states to enhance the aptitude of the segment in its existing form would be in difficulty. The food processing industry for its further development will now be allocated loans by rural development lender Nabard, from the Rs 2,000 crore amount allocated in budget, at interest rate of around 9.5 per cent. "Recently food processing ministry officials had met the NABARD officials to discuss about the guidelines for allocation of funds from corpus of Rs 2,000 crore.” In this year's budget Finance Minister Arun Jaitley had allocated Rs 2,000 crore to the National Bank for Agriculture and Rural Development (NABARD) for the development of food processing sector in the country. The loans would be provided for food processing units in a food park and also for creation of infrastructure at food parks. Meanwhile, Food Processing Ministry has received 72 proposals from various companies including Adani Group, ITC and Future Group for 17 food parks to be approved in the next twothree months. Under the scheme (2008-09) of mega food parks, the Food Processing Ministry had sanctioned 42 projects throughout the country. Of this, 25 projects are presently under implementation in various states. Food Processing Minister Harsimrat Kaur Badal had said that each park is estimated to attract investment of Rs 125 crore, aggregating to total investment of Rs 2,100 crore. Mega Food Park creates a synergy between two pillars of the economy-Industry and Agriculture, and it got a huge potential for food processing industry in the country.. During the 11th and 12th Plan, till date, a total of 40 Mega Food Park projects (MFPP) have been sanctioned by the Ministry for implementation in different states in the country, of which two the MFPP - Ptanajli Food and Herbal Park Pvt Ltd (Uttarakhand) and Srini Food Park Pvt Ltd (Andhra Pradesh) have become operational. Mega Food Park Scheme aims at facilitating the establishment of a strong food processing industry backed by an efficient supply chain, which includes collection centres, central processing center (CPC) and cold chain infrastructure. The scheme envisages one time capital grant of 50 per cent of the project cost (excluding land cost) subject to a maximum of Rs 50 crore in general areas and 75 per cent of the project cost (excluding land cost) subject to a ceiling of Rs 50 crore, in difficult and hilly areas, including north east region and J&K. Meanwhile, government is working on National Food Processing Policy to reduce wastage of perishables and improve the supply situation. Changing direction of my discussion I somehow wanted to share this bit of news with my readers, that US-based DuPont has set up a new multi-crop research centre (MCRC) in Hyderabad, as part of its Pioneer seed business. Established by DuPont Pioneer over an area of about 100 acres, the centre will house around 120 researchers who will be involved in the development of hybrid seeds for corn, rice, millet, mustard and cotton. DuPont Pioneer develops advanced plant genetics to supply seeds to farmers across 90 countries. The new facility will apply technological advancements such as molecular breeding and doubled haploids for the development of high quality hybrids to local and regional growing conditions. The new research facility will play a pivotal role in understanding regional challenges, weather changes, soil types and applying science to develop higher yielding products suitable to the Indian environment. This facility will help us bring them the required crop solutions for the future. DuPont Pioneer has built similar research centres in the US, Brazil and China. Changing the course and exploring the love for cookies across the globe, it is a great surprise that Yildiz Holding A.S. is going to buy United Biscuits for $2.6 billion, giving the Turkish company control of a number of cookie and snack brands with global appeal. The deal marks a defeat for other food-makers who sought to win United Biscuits, including Kellogg and rival Burton's Biscuits. Well that's what I have for this issue ….rest is next.
ndian QSR Industry is growing very rapidly. It is a reflection of the change in the lifestyle, food habits and consumption pattern of the population. The incidence of Dining out, ordering from home as well as takeaways is rising creating an opportunity to cater to a wide mass of population. What was the domain of upper class, singles or forced bachelors, has percolated to all echelons of society. The incidence and value differ substantially, but penetration of such consumption habits is wide spread and is on the increase. Although largely an urban phenomenon, the pattern is also emerging in rural areas with better road connectivity, increased vehicle ownership and rise in income levels. In a country with more than a billion people, opportunities in India are abound. This has led to a rapid growth of the QSR industry. However, simultaneously, it has also created a canvass that has many failures and carcass. Several outlets have been closed, a large number are struggling, still a large number are just about surviving and lot many of them have not been able to find their feet. There are a lot who are successful, but, more importantly, there is almost a complete absence of national chains, except of two cafes, three – four international chains and a few regional chains. Even these are very recent phenomenon and many of them are struggling. This indicates to the fact that just having a lot of opportunities is not enough. These opportunities need to be harnessed and converted into profitable enterprises. This paper is an attempt to understand the industry, its key success factors and draw a framework for developing a road map for success. This report focuses on the urban population, even though a large population lives in rural area. In no way does this report wish to ignore the potential. It is just that urban markets tend to offer better opportunity due to the lifestyle of the customers as well as concentration of demand. The Market The Indian consumers are portraying an ever changing lifestyle, one of the key characters of an emerging economy. The phenomenon takes a new meaning when a large proportion of population is young and very receptive to new ideas, products and services. In 2011, India's Gross Domestic Product reached Rs. 91.7 trillion. It increased significantly from Rs. 62.6 trillion in 2006. The per capita disposable income increased from Rs. 48,267 in 2006 to Rs. 61,591 in 2011. The per capita spending also increased from Rs. 34,713 in 2006 to Rs. 44,462 in 2011. India is a very young country. People between the ages of 18 - 35 contribute a significant proportion. This is also the spending years, food and lifestyle and hence QSR. In the top 10 cities this population also shows more discretionary spending, usage of credit cards and changing eating habits. About one thirds of them constitute the top layer consisting of SEC A and B who are educated and are professionally employed. The NCAER reports call them as Achievers and Aspirants. There is also an increase of the share of leisure and lifestyle spending in the PFCE of the Indian population. In 2011, the number of Indians above the age of 60 years-old was about 93 million, representing 7.6 % of the total population. This proportion is expected to increase to nearly 10% by 2020. Since many of these are more educated and have greater financial independence, they are spending time recreation and fitness activities, travel, and entertainment. About 15% of the total labour force has regular salaried jobs. While employment in the public sector grew at just 0.4% between 2010 and 2009, private sector employment grew at 4.5%.2 Organised and new industries have shown an increase in job creation especially in manufacturing, banking and finance, IT, pharmaceuticals, media and entertainment, online business, mobile services, healthcare services, health insurance and the hospitality sector. There is also an increase in the proportion of women work force in these industries. Long working hours, especially among those in management, is common, especially in private sector. Also in large cities, workers tend to commute. According to Payscale, a USbased salary tracking firm, Indian workers spend more time commuting as compared to many very large cities like New York. Commutes in Mumbai, Delhi and Bangalore spend on an average 47.5 minutes, 43.6 minutes and 40 minutes respectively. Most workers bring lunch from home, though with hectic work schedules and busy work life the incidences of dining at foodservice venues nearby their offices are increasing. EATING HABITS Dining In The per capita expenditure by Indian consumers on food and non-alcoholic beverages between 2006 and 2011 has grown by 3.6%. Indian households follow the traditional dining culture which places great value on freshly prepared meals. They eat traditional foods and cook fresh at home for every meal. Vegetables and meats are bought fresh. Meals are prepared fresh every time. A large number of Indian consumers still prefer vegetarian dishes though the demand for non-vegetarian food is on the rise in India, even among conservative households. Indian cuisine is wide-ranging and diverse. Different regions have clearly differentiated tastes and preferences. In recent years consumption of processed and packaged foods has grown strongly in urban areas more affluent households with working women. The number of such households is large but consumption is still very low. Indian consumers often celebrate at home over home cooked meals. This is especially true during religious festivals. The main meals as well as the desserts and special celebratory food items are still typically cooked at home. Ordering in is also on the rise. Among the SEC A, B and C households in large cities, more than 25% ordered in for more than 5 times in a month, 20% once a week and 22% once a month. There is a strong preference for Indian flavours and cooking styles. The interest in international dishes is on the rise but most Indian consumers continue to prefer Indian-style dishes. The more popular international cuisines include Chinese, Mexican, Thai, and Middle Eastern. In a large number of cases international dishes are prepared with Indian spices to suit to the local pallets. Snacking Habits Snacking is very popular in India. There is a preference for salty, sweet and savoury snacks rather than chocolate, confectionery and ice cream. Popular sweet/savory snacks include potato chips/crisps, extruded snacks and traditional snacks such as crisp Bikaneri bhujia string-like fried sev and chivda. Although most traditional sweet/savory snacks consumed in India are unpackaged or homemade, the share of packaged traditional snacks has seen a significant increase in demand. In recent years, there has been a broadening of the range of snacks flavoured with popular Indian flavours. Instant noodles have become a very popular snack for kids. There is an increase in the proportion of bakery products,
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BAKERY NEWS
– Opportuni es and Strategies to Harness Them especially cakes and pastries. Snacks also are high on the choice of customers when ordering in at home or office. Drinking According to a study by the World Health Organisation (WHO), a smaller proportion of Indians consume alcohol compared to consumers in Western countries. Approximately 67% of males and 92% of females in India are lifetime abstainers. Consumption of alcohol in India is increasing as opposed the trend in many Western countries. This has been driven by rising disposable incomes and greater acceptance of consuming alcoholic beverages by the society. The per capita consumption of alcohol in India increased from 3.3 litres in 2006 to 5.4 litres in 2011. Times of India said “Indians love their whisky, vodka and rum but are yet to develop a taste for wine. An average Indian adult (15 years and over) drank 2.6 litres of 'pure alcohol' between 2003 and 2005. This was higher than the per capita consumption in the south-east Asia region which stood at 2.2 litres. For every six men, one woman drinks alcohol in India.” Outside of the homes, alcohol is consumed in restaurants, beer bars, pubs, clubs and discotheques. Many restaurants mark off separate areas called 'permit rooms' which accommodate the sale of alcohol. According an article on nightlife in India on website goindia.about.com, “the country's bars tend to be divided into two categories: cheap, seedy local bars frequented by India's male population and classier venues catering to the progressive middle- and upperclass crowd. The latter can only be found in major cities”. The site adds “An interesting term used in India is that of the 'resto-pub' or 'resto-bar'. These are restaurants that double as places where you can drink, and sometimes dance later in the night, as many restaurants don't serve alcohol in India”. Per Capita Consumption of Alcoholic Drinks and Soft Drinks by Category in 2011 Dining Out Dining out has seen explosive growth in recent years as urban consumers seem to have found more occasions to celebrate and more opportunities to dine outside the home. Birthdays, wedding anniversaries, graduation parties, Valentine's Day celebrations, reunion parties and many more occasions are celebrated by dining out, at least by affluent consumers. According to the India Leisure and Entertainment Report by the Knowledge Tree company, dining out is now one of the three most popular recreational activities among Indian consumers. This is also due to lack of space in most urban dwellings. According to a 2011 study on Indian consumers' attitudes toward dining out conducted by the US Department of Agriculture (USDA), traditional eating habits in India are changing and consumers who traditionally always ate at home are now increasingly dining out. Busy urban workers often pick up a quick breakfast from street stalls located close to office; lunch (and often dinner, too) is often purchased from stalls close to office. But while the vast majority of dining out consists of purchases at street stalls, restaurants have nevertheless accounted for a rapidly growing share. According to the USDA report, dining out in India used to be reserved only for special occasions but increasingly younger consumers and consumers from middle- and upper-income households are dining out more often. Many have shed the biases often held by older and more traditional consumers regarding the quality of international franchises and foreign foods in general.6 Many international chains such as McDonald's, KFC and Domino's Pizza, Baskin-Robbins and Indian chains like Haldiram, Nirula's and Bikanerwala have evolved. These are modernised with menus and service to compete with the leading outlets. According to an industry journal Express Hospitality, the main dining out trends are contemporary Indian, Asian street food and grill, Pan-Asian cuisine and gastro-lounge-bars that focus more on their food offerings with sparse décor. The three major trend in the cuisine are growth of regional Indian food, chef-led innovation into fusion cuisine and popularity of international food and styles. Going Out One of the most common activities in both urban
and rural areas is going to the cinema. It is also one of the more affordable entertainment options. Another common (and affordable) activity is going on picnics at nearby parks, beaches or other locations of interest. An article on leisure trends in the Times of India mentioned that the increasingly busy pace of urban living in India is driving a greater appreciation of 'down time' in the country and consumers are becoming more and more willing to spend money on relieving their stress. A tourism website india-hotel.net notes that “As a rule, traditional Indians did not use to believe in nightlife and its associated activities. However with Western influences and work ethics coming in, the rules of the game have changed. Most big towns and cities have pubs and discos that are open all through the week. Even then the major crowds will only surface on the weekends yet from time to time some events are organized which will draw in the crowds”.8 Cities such as Mumbai and Delhi offer a wide range of nightlife activities and venues. These include restaurants clubs, lounge bars and discotheques. Indians typically go out on a weekly basis but some go out more often. The night life is still restricted and regulated. According to website goindia.about.com, “In most cities in India, nightlife is early to start and early to end because of the curfews in place. While
rapidly. The country is estimated to have more than 2.1 million outlets serving out cuisine that is diverse and appealing to diverse taste buds. More than 85% of these are standalones. The different locations where these outlets are found include retail, leisure, lodging and travel. All these locations are showing growth, but the growth at retail ad travel is much faster. By 2015, these are expected to have about 145,000 and 87,000 outlets respectively, amounting to 12% of total outlets. The total foodservice market is expected to be Rs. 43,000 crores. The organized segment of the restaurant industry, at approximately Rs. 7,000 crores to Rs. 8,500 crores, forms 16% - 20% of the industry. The size of the industry is expected to be Rs. 62,500 crores by 2015.The organized segment is growing, at 20 - 25% per annum. The overall restaurant industry (organized/unorganized) is growing at 5% - 6% per annum. The value growth is largely taking away from the standalones. It must be noted that while the rate of growth is slowing the number of standalones would still keep growing, though the value may stagnate, before it starts showing any downward trends. The chains still comprise a very miniscule proportion of the outlets, though growing at the rate of 43%. The QSR segment has shown the fastest growth with a value growth of 15% - 20% in both 2006 and 2007
Mumbai may have the biggest selection of party places in the country, come 1.30 am they're all starting to close for the night. With a few exceptions, the scene is similar in Delhi and even worse in Chennai, Bangalore and Hyderabad which have 11pm or 11.30pm curfews. Even in Goa, most places are forced to close by 10pm due to noise restrictions. Many venues have found that the solution to the curfews is to open during the day or early evening. A ban on dancing was introduced in Bangalore in 2008, but it was finally removed in late 2011 after a series of protests”.
Competitive Landscape The industry has high potential. It is also showing high growth. However, it is also witnessing high competitive intensity. This happens because the entry and exit barriers are low in the industry. Even though there are failures, more and more new outlets are started as the market is witnessing growth. The reasons for entering into this business are several. It is found that a lot of enterprises are more out of the glamour. Many enter into this industry to give their children or spouse an employment. They treat the investment as a 'gift' and are not expecting return. If it succeeds, the children are 'settled'; else they would find some
Café Revolution Although, tea shops serving fresh and affordable tea are in large numbers and are located very
conveniently, in recent years the number of cafés has grown significantly catering to urban affluent consumers. These consumers are younger consumers influenced by western dining and drinking trends. These cafés are considered as joints or addas to relax and to escape from the stress of urban living. The posh Western interiors, good music and attractive lighting make cafés very interesting places for young consumers to spend their time. They also offer food and other beverages such as tea and juices. Increasing base of credit/debit card holders is also fuelling growth in eating out market. It is estimated that 25 million people were using cards for money transactions in 2008 and the growth is poised 20-25 per cent year-on year. Travel, hotel and dining category accounts for 35 per cent of credit card usage. The Foodservice Industry Catering to more than 1.2 billion people, the foodservice industry in India is large and growing
other employment. The premises, if bought, is seen as a creation of asset, hence no risk. A large number of these outlets are started by chefs or those with hotel management background. While they have the culinary expertise and have worked in some establishment, they are entrepreneurs by nature. The focus on food and culinary expertise is more and limited on the business essentials and hence when faced with difficult time, they tend to go asunder. The other group consists of people from the real estate fraternity who have set up property and make food courts integral to the property. Their return expectations and revenue source is rent and not sales revenue. This makes the competitive landscape as complex as some of the Indian Dishes where despite knowing the recipe, once is not able to get a great dish. Another factor that leads to competitive intensity is the cost structure of the business. Most of the costs in this business are fixed, such as premises, fixture, personnel, lighting, air-conditioning, and municipal taxes. These are not linked to the sales. Hence, even when the outlet is not performing, the cost of continuing is small. The fixed costs are considered as sunk and like airlines business, even when only the operational costs are covered the enterprise keeps going. The continuance of such outlets, even though not very profitable, attracts more enterprises. With the competitive pressure, there is pressure on margin. Since revenues cannot be increased so easily, the efforts are towards cost cutting, subjecting the outlet to a downward spiral, leading to closer after a long
Beverages & Food Processing Times
suffering. But till they survive, and there are many of them, the market remain highly competitive. The organised sector takes a different route. They start with a larger capital investment and hence have higher breakeven point. They require a large number of customers with higher level of spending in every visit. Since the customers are variety seeking and the frequency of eating out is not very high, the number of customer required to make profitable business increases substantially. As they tend to use mass media communication, the novelty of the outlets draws a lot of customers. There is also a higher level of frequent repeat visits. However, unless managed well, in a large number of cases, sales dip after hype. Most outlets are not prepared for this dip and take to kneejerk reaction of increasing sales, losing margins in the process. Also a hugely successful launch brings competition faster and the available market suddenly shrinks. Outlets tend to drop prices, offer value packages or increase communication efforts. All these lead to lower profitability, even though revenues go up. Sometime later, the customers also get immune to such activities and churn faster. Chains have their own set of issues. Different stores cater to a different city and its characters. Each outlet is unique in terms of its catchment area, competitive landscape and physical terrain in terms of location, traffic patterns and consumer habits. This requires a localized management while being part of a chain. The costs tend to be high and hence such outlets end up serving high end customers. QSRs have a found a way of bringing down the costs by limiting the offers in terms of menu and service and standardising the offers across the chain. The consistency requires a high level of quality management and better and centralised sourcing. While the front end costs are reduced, the back end costs increase putting huge pressures on profitability. Chains also have a problem of a high corporate overhead which are required to bring the focus and efficiency into business, but weigh heavily on the profits till a certain number of outlets are setup and stabilised. It is very common to find that outlets become profitable sooner than the corporation. With entry of large Indian and MNC companies, the industry gets boost of authenticity and creates euphoria. This produces a bubble which grows and grows and grows as a lot many new entrants come into the industry swayed by the entry of l a rg e c o r p o r a t i o n s a n d w i t h o u t r e a l l y understanding the nuances of the business. Very soon the market becomes murky. Customer seems to be happy as they are getting choices and better prices but enterprises bleed. It is also expected that the growth in per outlet value would taper soon and even go down in some cases. The Bottom – Up Value Based Approach We suggest that the entrepreneurs who are already there and want to scale up or those who are entering into this high growth fast paced dynamic industry should follow a customer value based approach to build a sustainable business. The industry is fraught with replication but has lacked scaling up. Even Calvin Care have decided to withdraw. That the opportunities are there has no doubts. What one needs a business model to harness this opportunity. We present a framework that could be used to build such models. It covers three main processes – sensing value, creating value based offers and deliver value. Core of this model is company's very own, the value proposition it promises to deliver and not the opportunity that lies out there. Identifying the Value Proposition The value proposition identified by the firm is a combination of the entrepreneur's own values that they cherish, the values being delivered by the competitors and the values that would be relevant
to the customers. Sanjeev Kapoor feels, “We might be registering a shift of 'mom n pop' shops from conventional mode to organised retail, but
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FOOD INGREDINTS NEWS restaurants suffered from high level of inefficiency and low 'effort to return ratio'. I firmly believe that food retail will go the telecom way in the next fourfive years. Entrepreneurs need to break the mould and go ahead with growth.” The statement clearly indicates that there is need to bring a change in the paradigm to succeed. One of the more common term used in this regard was propagated by Al Ries and Jack Trout in early 1980s as was called USP – Unique Selling Proposition. They proposed that we must have something different or differentiated to succeed. While this is a gem of an advice for entering a business, it need not be helpful in sustaining. The more pertinent question to be asked is: Unique: How do I maintain the Uniqueness? Sustainability: How do I remain relevant to my customers? Profitability: How I generate enough surpluses to grow and defend in a competitive market. Customers tend to have a value ladder in their minds. Principally, there are four levels in this ladder. The role and importance of each of these levels are depicted in the figure given below. An entrepreneur need to choose the level it wishes to operate. While it is possible to move within the levels, it not desirable as the movement would disturb the association with customers and would lead to a confused or wrong positioning, very detrimental to the business. Many enterprises do not pay attention to this in the race to increase their revenue and pay heavily later on in correcting their positioning. Most companies choose one value to build their outlets and chains due to the requirement of a different business model for delivering different values. The cases of Cafe Coffee Day, McDonald's, Subway, KFC, Haldiram exemplify this. For catering to different value segments, companies like Lite Bite Food, use different operating model such as Subway, Punjabi Grill, Asia Seven, Fresc Co, Zambar, each targeted at different requirements of the customers. An illustration of consumption of coffee at different location and their distinct value is given here. Developing Customer Profiles The value takes different forms depending on the segment. It is very necessary that the organisation chooses the target segment carefully. The macro demographic segmentation may not be very relevant as can be seen from consumer studies. The table above also indicates that more than just the demographics, it is the SEC that is more relevant for outlet choice. The NRAI study shows that the incidence of eating out is similar among all SECs, so are their preferences. The behaviour is similar across the region and size of the cities. 15 Firms must therefore choose their segments very careful so that they can target their offering and not get swayed by the fact that everyone is eating out. The selection of outlets seems to be affected more by the values that the customers cherish and the lifestyle that they live Customer Expectations Eating out is not just food but a lot of experiences. Such consumer behaviours are shaped more out of expectations than the need. While good food is the most desired, the experiences desired by the different segments can be classified as “peak experience” and “consumer or supportive experience”. Peak experiences as those activities that are the primary focus of the trip, whereas supportive experiences are those peripheral activities necessary to accomplish the peak experience. In this typology, this has been adapted to a lifestyle setting assuming that eating out behaviours can be similar when compared with touristic behaviours.16 Consumers also tend to show a variety seeking behaviour both in terms of the outlets, formats and food. The frequency of visit is also lower and it is a planned activity. In addition, in most cases, eating out is the only activity they perform in their outing. Most customers visit with their families and friends. Added to it is also the expenditure in each visit. This makes the eating out a very involved activity. Combining the two aspects customers could be classified as in figure below. Each of these segments expects different experiences. Choosing the Format Historically, restaurant referred only to places that provided tables where one sat down to eat the meal, typically served by a waiter. Following the rise of fast food and take-out restaurants, a retronym for the older "standard" restaurant was created, sitdown restaurant. Most commonly, "sit-down restaurant" refers to a casual dining restaurant with table service, rather than a fast food restaurant, where one orders food at a counter. Sit-down restaurants are often further categorized as "family-style" or "formal". In British English, the term restaurant almost always means an eating est abl ish
ment with table service, so the "sit-down" qualification is not usually necessary. Fast food and takeaway (take-out) outlets with counter service are not normally referred to as restaurants. Outside of North-America, the terms fast casual dining restaurants, family style, and casual dining are not used. The food service industry is also
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classified based on the formats as given in the table below. Customers tend to visit different type of outlets. Multi-cuisine is still the most visited. QSRs are visited by only 3% customers.18 It is still emerging and would slowly become preferable as the values sought by customers revolve around the psychological benefit of fun and enjoyment. Customers choose a restaurant based primarily on food.19 However, they expect more than just food. The choice of the outlet and the format is hence hierarchical in nature. An outlet that qualifies in each of these would become a preferred outlet. Size of Opportunity An enterprise would need to arrive at the right size of the opportunity. “The fact that we employ ten times to what hotels employ, makes restaurants an integral growth story. The future is bright as we move ahead tapping the untapped zones like travel retail for example railway stations.” This is not exactly the total market, but the size of the market seeking those values. Since everyone is likely to visit the outlet but has a lower frequency and also variety seeking, the enterprise would have to target the share of the requirement and the share of the wallet, than the share of the market. The proportion to actual size to the gross potential is 1:10. A firm must therefore build infrastructure based on the actual size. Unfortunately, most of the players design the plan based on the gross leading to higher entry cost. The gross potential also drives new entrants making the market potential vanish or difficult to get. Vikram Bakshi, MD & joint venture partner, McDonald's India (North & East) added, “Establishing the business takes time in India, especially restaurants. Therefore, finding relevance for customers to come in a restaurant becomes a vital parameter of consideration. The sector is growing at 25 per cent per annum and the important aspect is to find your restaurant relevant.” Building Resource and Capabilities The enterprise would, based on the opportunity, now have to build resources and capabilities required. The value desired to be delivered would be the pivot to identifying these resources and capabilities. The main resource is NOT money. It is just one of the factors of success. The critical resources are the infrastructure, attention to details, perseverance and customer orientation. The capability to manage every customer, every transaction and changing competitive challenges determine the success. It is not just opening the outlets; managing it to the changing customer expectations is the core. QSR is a people business. Technology is becoming a core of this business. It encompasses the complete value chain from supply chain too production to delivery. In addition to food preservation, production and preservation technologies, successful QSRs tend to use information technology to manage their operations as well as delivering high quality instore as well in-home services. This would be then translated into decisions with regard to kind and range of food, location, supply chain, people, organisation and pricing. Conclusion Eating out is a common phenomenon in India. Customers tend to go to different types of restaurants. They tend to show a variety seeking behaviour in terms of outlets and variety of food. This has created a large potential. The industry is also growing a rapid rate with some of the formats growing at more than 20% per annum. It characterised by its fragmentation with a large proportion being unorganised. Even the organised sector consists of smaller independent units, very few chains and much less Indian enterprises. Attempts are being made by firms like Dabur, Reliance, Calvin Care and Haldiram to develop chains. The progress is slow and fraught with risks. This paper is an attempt to suggest a framework when starting or scaling up the business. The core of the framework is the value proposition that the company promised to it market based on value of the targeted consumer than the potential of the market. The process is bottom-up to reach at the top of the market. The value could be build around the chef, the food, location, pricing and experience. Enterprises must choose one value on which the business would be built. In case it wants to address different value segment, it must choose different format that require a different business models, than a linear extension.
t
FOOD INGREDINTS NEWS
71% of U.S. moms agree: Food and happiness go hand in hand
hought for Food survey identifies trends in food purchasing
The majority of U.S. moms (71 percent) believe the foods they eat affect the quality of their lives. By reading more labels, researching ingredients and actively engaging in conversations to inform purchasing decisions, moms are making informed decisions about food in order to help their families lead better lives. Leading food ingredient company, Chr. Hansen's Natural Colors Division, commissioned the “Thought for Food” survey to learn what U.S. moms look for in food labels and gauge their perceptions of natural ingredients. While moms rely on personal insight gained from Google searches, news segments and social media discussions, most of their purchasing choices are made by reading food labels. “One significant outcome from the survey found 83 percent of respondents wish there were more naturally derived food offerings from U.S. food companies. This insight drives product development to help our customers meet consumer needs,” said Mary Bentley, senior vice president color sales and commercial development, Natural Colors Division, Chr. Hansen. “It's also interesting to note 80 percent of moms are more likely to purchase a product if it contains naturally derived ingredients, which demonstrates strong purchase intent that will position those products as market leaders.” “Findings also revealed U.S. moms are very knowledgeable and active in the natural ingredient conversation,” said Bentley. “Our strategy to be Nature's #1 drove the “Thought for Food” survey. We hope that by sharing our findings, it can serve as a benchmark for future studies as interest in natural ingredients continues to gain momentum as a leading consumer trend.”
Controversial Blendhub Corp. addi ve MSG finances and advises may not be so bad startup projects for you in func onal M Ingredients
onosodium glutamate, the salt-like flavor enhancer known as MSG, is suddenly winning converts in the United States.
M
akes its experience in attracting funding and launching R&D projects available to other companies to produce and market food powder blends. Manages the setting up of production facilities anywhere in the world, allowing customers to reduce their risk paying only what is produced by the kilo. Blendhub Corp. has created its Finance Excellence Center as part of its global offering to companies who require services related to the processing and marketing of food powder blends, covering all the needs they may have. The new center complements five others (Formulation, Blending and Packaging,
risk and maximum flexibility, paying only based on his production, through a simple payment per kilo, and without having to make a down payment. Furthermore, Blendhub Corp. offers clients other advantages such as financing its raw materials and products stock. Another of the services' lines in the new center of excellence consists of supporting the set-up of new projects of the startup type for B2B and B2C businesses, both financially and through analysis and consulting specialized in the food industry, to evaluate issues of profitability, cost savings, or optimum locations for producing. Through the company Premium Ingredients,
MSG is wildly popular in Asia, where tiny jars of it appear on restaurant tables the way salt and pepper shakers do here. But American consumers often balk at the ingredient, which has prompted a decades-old trend in which Asian restaurants and snack makers in the States tend to stick "No MSG" claims on menus and packaging as a way to
attract health-conscious consumers. Now MSG, which scientists already largely agree does not cause sickness in humans, is winning the support of a number of prominent chefs in the States. The "No MSG" phenomenon tends to remind us of the "gluten-free" craze. In both cases, a food ingredient that is common across much of the world becomes reviled here in the States. And in both cases there is considerable controversy over whether or not the ingredient in question is actually causing the symptoms that many people experience.
Supply Chain, Quality, and IT) and allows for the company's clients to obtain transparent information about the cost of each service or product, including the company's profit margin. It also supports other companies willing to initiate business projects of the startup type in the sector both financially and by sharing its experience of more than 15 years in launching R&D initiatives related to the making and commercialization of functional ingredients, and new markets' entrance. As part of its financier role, the Blendhub Corp.'s Finance Excellence Center selects the alternative source of financing for each specific project, thus, the client can begin producing anywhere he needs with minimal
the Finance Excellence Center of Blendhub Corp. has over 15 years experience in the launching of R&D projects and raising funds from public agencies and other institutions to implement new technologies in the food sector. It has, for instance, the Eureka Seal, which facilitates the access to finance projects based on innovative technologies and aimed at developing products, processes, or services. Through its new business area Blendhub Corp. wants to collaborate, with other companies interested in entering the food powder blends sector or starting new projects in this field, offering its expertise to enable them to successfully launch their initiatives.
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For updated news everyday logon to www.agronfoodprocessing.com
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PACKAGING NEWS
Microscan Unveils Simple, Mul ‐Camera So ware for Packaging Inspec on at PACK EXPO 2014
r
ENTON, WA, October 14, 2014 – Microscan, a global technology leader in barcode, machine vision, and lighting solutions, announces that it will unveil a new software solution in its line of automated machine vision inspection products at two booths at this year's PACK EXPO 2014, taking place at McCormick Place in Chicago, Illinois, from November 2-5. Microscan partner companies Electronic Solutions Company (Booth #523) and High-Mark Systems (Booth #6761) will showcase Microscan machine vision and barcode technology at the show, including live demos of the newly-released Visionscape® I-PAK® VH Software. I-PAK machine vision software, which began as a dedicated label inspection system in 1988, has been continually developed by Microscan
machine vision engineers to address a range of challenges faced by a broad range of applications. Since its release, I-PAK has become one of the most widely-chosen package inspection systems in industries from pharmaceuticals and beyond. This is due largely to its 21 CFR Part 11 compliance and packaging-friendly toolset for ensuring label accuracy, date/lot code validation, package integrity, and other image-based inspections for data tracking and quality control. Now equipped with the full range of inspection capabilities offered by Microscan's advanced machine vision platform, Visionscape®, and supported on the latest Microscan machine vision smart camera, Vision HAWK, I-PAK VH Software is the most versatile and powerful version of I-PAK released to date. I-PAK VH will be unveiled in two live demos at this year's PACK EXPO 2014. Microscan partners Electronic Solutions Company and High-Mark Systems will demonstrate the capabilities of I-PAK VH, from controlling and visualizing the inspections of up to four machine vision smart cameras at once, to advanced label inspection such as text print quality and barcode validation (to ensure ISO or GS1 compliance), to grouping and rejecting items based on color. IPAK VH Software maintains the product's familiar feature set such as the ability to set up and save complete inspection jobs to the user's PC, which can be loaded quickly to Vision HAWK cameras in case of line changeover or new inspection criteria. It also features a database of password-protected usernames, enabling manufacturers to gate access to certain software capabilities and identify an audit trail of inspection job changes made by logged users.
Alongside I-PAK VH, Microscan staff and partner staff at each booth will showcase additional barcode and machine vision inspection solutions for packaging. High-speed barcode reading will be demonstrated by the MS-3 laser scanner, which is capable of rapid product identification and tracking to match speeds of production. Barcode print quality verification will be demonstrated in a custom user interface, the new VMI (Verification Monitoring Interface) plug-in for the company's award-winning AutoVISION® Machine Vision Software. In addition, members of Microscan's dedicated Packaging Solutions team will be available throughout the show to discuss packaging automation challenges with visitors to either booth. For more information about Microscan, visit www.microscan.com or stop by booths #523 or
6761 at PACK EXPO 2014. Schedule a booth meeting with a Microscan barcode and inspection expert at this year's show and receive a promotional code for free registration (valued at $60). Kosme Italy rejuvenated · Kosme's product portfolio optimized · Competitive capabilities enhanced · Machines and lines still from a single source Krones AG, the manufacturer of beverage filling and packaging lines, has rejuvenated its subsidiary Kosme, which produces machines and lines for the lower output range. The new organisation relates solely to Kosme's facility in Roverbella, Italy. In order to secure the plant's future on a sustainably viable financial basis, the product portfolioof Kosme Italy has had to be altered and the capacities correspondingly rightsized. Kosme will now be concentrating on its core competences in the fields of filling and labelling technologies. The operations for producing packing and palletising kit have been discontinued. Kosme Italy, however, will continue to offer complete lines in addition to the fillers and labellers that constitute the company's core business. These lines are supplemented at need by products from appropriately qualified partner companies/suppliers, who meet the requirements for optimum quality laid down by Krones and its subsidiaryKosme.
Building loyal consumer base is very important Rajiv Mitra (Govind Milk)
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ndian dairy industry is passing through a development phase. What are your comments? India has seen a steady growth in the dairy industry since Independence. Thanks to Opera on Flood India became the largest producer (and consumer) of milk in the world. Currently, the dairy sector is moving from being just an agrarian way of life to a professionally managed industry. This transforma on opportunity is induced by new‐found interest on the part of the organized sector, new markets, easy credit availability, fresh investments (including FDI) in the sector. Dairy products are the only source of animal proteins to a huge sec on of vegetarian popula on. Also there is an encouraging health consciousness among the youth. Drinking milk is fashionable now. Although consump on pa ern is skewed towards tradi onal products; westernized products are gaining acceptance in the urban areas. What is the role of your company in milk and milk products business in India? Govind Milk & Milk Products have been doing pioneering work in the industry since incep on almost two decades ago. Tirelessly working towards socio economic development of milk producers at the input level. The farmers benefit from our ini a ves in developing free housing farms, hydroponic fodder. They benefit from our investments in milking machines, ar ficial insemina on, tracking so ware etc. All our efforts are towards increasing quality and quan ty of yield that ul mately lead to more earning for the farmer. Our processing facili es are the best in the industry. We can boast of a state‐of‐the art powder plant. Be it milk or milk products we have no‐compromise approach towards quality. We have all necessary quality cer fica ons (recently acquired FSSC 22000) for domes c and global requirements. We are a preferred supplier of milk powder to most of the known chocolate manufacturers, baby food manufacturers tes fying our penchant towards impeccable quality. Our logis cs and distribu on system that reach out to the end‐ use consumer are highly efficient. In sum, we are playing a big role in making an impact on all cons tuents on the value chain; the milk producer to the end consumer. Happiness to the farmer, value to our distribu on network, quality to the consumer has been our moto. In the coming days we hope to con nue to lead through quality and be a major na onal player. There are s ll not many na onal players of milk and milk products in India, what is the reason behind this and do you see that there will be more na onal brands in coming years? It is true that the industry has mostly seen strong regional players and very few na onal players. Lack of cold storage facili es has been the biggest inhibitor of regional players gaining a na onal presence. Yes, the encouraging part is with improvement in infrastructure in general and emphasis on cold chain development in par cular, we can surely see emergence of some na onal players over the medium term. There are many mul na onal dairy companies like Arla Foods, Denon, Kerry Group and Dutch dairy coopera ve are eying Indian market, do you think entry of MNCs will benefit the dairy sector or it will give bad effect to the Indian companies? Personally, I have been a votary of globalisa on in every sector. Dairy sector is no different. When the global companies set up shop in India, they do so in compliance with the Indian legal system, bring in technology and know‐how, generate employment, invest in growth and expansion that bring about a general well‐being. From the market and compe on point of view, entry of MNCs will do more good than otherwise to the sector and the consumers. Process efficiencies will get be er, quality will improve, investments in cold storage infrastructure will result in longer shelf life and lesser losses. With all of these, ul mately the consumer will benefit by ge ng the best products at the best prices at a place most convenient to him. There have been fluctua ons in government policies for the export of milk products in the past especially milk powder, do you think it is the right way of tackling the local pricing or something be er can be done? Li ing of export subsidy on milk powder has resulted in some inconveniences to the sector. Hope that it is a temporary constraint. At current price points, export of powder from India is not compe ve at all. The industry body has submi ed a charter of demands with the government. We will have to wait and see if there will be some interven ons in the near future. Brand loyalty plays very important role in food industry especially the dairy products like milk for daily consump on, your comments? How do you take care of branding at your end for your products? Building a loyal consumer base is indeed very important. It can happen through quality products, efficiency and meliness in distribu on and responsiveness towards customers' tastes and preferences. Govind has been built on the a ribute of quality in procurement, processes and products. Quality is non‐nego able at Govind and this has resulted in a very good user experience, a s cky user community. We have not been doing too much of adver sing or promo ons, inves ng all our might in producing the best in quality, instead. However, we realise the need of communica ng our set of values to the people in general. We are now inves ng in taking brand Govind to a wider spectrum of consumers and crea ng an even bigger base of loyal, delighted customers.
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COMPANY NEWS
Indian Chocolate Market Forecast to 2019
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hocolates have now become one of the major substitutes of the traditional sweets in India. Currently, consumers prefer well wrapped chocolate packets as gift rather than traditional sweets on occasions and festivals. In India, apart from kids, the major consumers of chocolates are teenagers and young people. Also, Chocolates which were earlier considered expensive have now become affordable by one and all. Also, the strong economic growth of the last few years and increasing brand consciousness among the new wealthy Indian middle class combined with a greater exposure to western lifestyle has created hunger for branded Chocolate in the country. Over the past five years (200910 to 2013-14), the Indian Chocolate Market has been growing at a rapid pace and is expected to sustain its growth in the coming years. In order to help manufacturers, importers and exporters to better understand the Chocolate market in India, IBNA Research, a division of Indian Business News Agency (IBNA), has launched a new market research report titled “Indian Chocolate Market Forecast to 2019.” “Indian Chocolate Market Forecast to 2019” is a comprehensive market research report that contains detail statistics, in-depth analysis, and quality research on Indian Chocolate market. This market research report is unique in its collection of highly relevant data, from
Electronics Devices Worldwide Pvt. Ltd.
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legislation and imports to pricing levels, analyses of market share, market growth and more. The report categorizes Indian Chocolate market into four product segments such as Moulded Chocolates, Countline Bars, Sugar Panned and Choco Panned to provide a detailed overview of past and present performance of each segment. The report starts with an introduction of India's demographic and macroeconomic indicators, including focus on Indian Cities for Growth. Chapter Two of the report explains government regulations, policy on food products, especially on Chocolate. The chapter brings the rules and regulations of imported foods and their impact on the Chocolate industry in India. It also provides market entry strategy, explains entrance routes and analyses the most relevant options for the foreign Chocolate companies to enter in the market. Chapter Three covers duties and taxes on Chocolate, including detail discussion on tax rates imposed by the central government as well as the state governments. Chapter Four discusses the production of Chocolate in the country including data on production. The chapter provides the information and statistics needed to understand the dynamics of Chocolate industry in the country.
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Intertek Celebrates a Decade of Growth and Success in Mauri us
ntertek, a leading quality solutions provider to industries worldwide, recently celebrated 10 successful years of operations in Mauritius. To commemorate this milestone, Intertek hosted a two-day seminar (October 8-9th 2014) where industry experts discussed the latest trends and topics affecting the industry, including evolving social standards, food services capability and challenges and solutions for RSL, REACH, SVHC and ZDHC. This was followed up by a client interactive session on 10th October to acknowledge their support for the past decade. Intertek Mauritius first began its operations in 2004 with Textile and Apparel testing as the first industry sector. Today Intertek Mauritius employs around 22 employees having two labs serving four major industry sectors. Over the past decade, Intertek Mauritius has contributed to some of the most innovative testing services to its clients including Acceptable Quality Level (AQL) – a random sampling inspection method based on the theory of probability, 4-point system check – issued by American society for testing and materials in which faults are scored with penalty points, Colour Fastness to Ozone test, pH check for waste water etc. Intertek holds extensive global accreditations and was accredited with ISO 17025 accreditation for its textile testing laboratory in Mauritius. Talking about the completion of glorious 10 years in Mauritius Mr. Rajesh Saigal, Regional Managing Director, Intertek, South Asia said, “This is certainly a proud moment for Intertek. Our journey in Mauritius has been very promising and we have concrete future growth plans to make available highquality testing resources to our customers in
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COMPANY NEWS
the most suitable locations. The company has come a long way since its inception in 2004; growing our employee base, developing several state-of-the-art products and delivering solutions to customers around the globe. Over the past decade we have set up two advanced hi-tech labs and have continuously taken initiatives to make the local industry players aware about our offerings and services. We are confident that we have strengthened our roots in the country.” He further added, “Mauritius has huge opportunity for growth and productive capacity that is still to be unleashed. We aspire to solidify our position in the market and reach our true potential.” Commenting on the same Mr. Manish Kumar, Regional Director – Softlines and Country Manager for Sri Lanka, Mauritius & Madagascar said, “Intertek has built its success on excellence, through its testing capacities using innovative technology. In the years ahead, we aim to take the lead in providing the best service to c u s t o m e r s , o l d a n d n e w, c o n t i n u a l l y maintaining a customer oriented approach and monitoring the needs of the market.” We will support the growing demand for testing services in the local market, and surrounding countries including Madagascar and Reunion Islands. Our strategy is to save clients their time and the costs associated with the process of shipping test samples to distant lab locations. To support our client needs further, we are planning to setup an analytical lab in 2015.” Testing, Inspection and certification services:
Global Oil seed produc on has caused panic in Indian edible oil industry
umper oil seed production globally caused panic in Indian edible oil industry, which asked the government to hike import duty on the commodity by a large amount in order to prevent dumping leading to losses of Rs 607.89 ($10) billion for the Indian sector, putting its health at stake. According to industry sources, a request was made to the Food Ministry last week, whereby sector players asked for an increase in the import duty of crude edible oil to 10% (from the current 2.5%) and 25% for the refined product (from the present 10%). The local industry also approached o t h e r government departments with this request. The domestic industry argued if this is not done, there's a possibility that imports of edible oil increase by 12% yearon-year to over 13 million tonnes next year, affecting farmers and refiners alike due to dumping into the Indian market. There could be a total loss of Rs 607.89 ($10) billion in terms of trade, procurement, logistics, crush, exports, value chain and a huge loss in employment due to under utilization of domestic manpower, plants. The crushing
industry would suffer due to (price) disparity, refining would suffer due to dumping and falling margins would eventually result in extremely low prices for Indian farm produce. This implies if crushing of domestic produce falls, it will lead to lower oil availability in turn calling for more imports and loss in forex reserves. "All of this will result in a major loss of acreage in oilseeds next season, which is very negative for Indian economy in long run. This is the most opportune moment for the government to increase import duty on edible oil as internationally prices may still f a l l f u r t h e r, increasing the risk of dumping into India. The industry has asked for a difference of 15% in import duties of crude and refined edible oil so that the refining industry in India, which is idling, can be encouraged. Indian dependence on imported edible oil is 60% and the country is expected to import 11.3 million tonnes this year. Government officials looking into the matter said while they are considering the industry's request seriously, they're also evaluating the impact on consumers as edible oil price may become costly if import duties increase.
1. Mauritius: Textiles, Coffee, Book, Mobile Phone, Sugar, Beans, Chemicals, Generator, Medicine, Aluminium Bars, Labels, Soap, Internet Cables, Electronic product 2. Madagascar: Textiles, Cloves, Plums, Soya Beans, Sugar, Rice Delhi gets its first multi-brand frozen food home delivery service, 'Frozone' - WESTCOAST Group Ties up with Baskin Robbins, Zorabian Chicken, Ice Cream Works, McCain and more WESTCOAST Group, a leading frozen food products distribution company in the Indian retail market has now announced its new unique offering – 'Frozone' – a multi-product multi-brand frozen food product eStore o f f e r i n g convenient home delivery in Delhi. Offering a wide range of products spanning seafood, icecream, finger foods, Indian breads, and the company has tied up leading brands such as Baskin Robbins, Zorabian Chicken, Ice Cream Works & McCain amongst many others to offer a multi-category package to its Delhi customers. Adding more product categories and brands is been actively looked into to offer a good choice to the customer. With its proven experience in handling and managing effective distribution of frozen food products, WestCoast believes of it offering a great value-proposition to its customers. The USP being 'frozen food, delivered frozen' it's
but natural that all the products are guaranteed to be stored and transported at -180 Celsius, till its delivered at your doorstep, to ensure that the quality is maintained. Speaking about the launch Mr.Shivam Gupta, WestCoast Group said, “Attempts are been made by a few e-retailers to deliver frozen food products to end consumers. Realizing the adverse impact the brand is subjected to owing to non-adherence to established practices of handling frozen food, it was felt that we should bring-in our experience and expertise to the growing e-retailing business in the Indian market”. Convenience – of ordering, shopping and delivery, is top-most on the mind of today's c u s t o m e r. We i n t e n d t o o ff e r m a j o r convenience factors at every stage of the customers buying effort, to make frozen food shopping a most stress-free experience in Delhi. This effort can be termed as a good combination of our expertise, our products, great offers and leading brand partners across frozen food categories. It's just a phone call or a click away to delight our customers, including on Sundays.” Whether it is Honey Nut Crunch, Very Berry Strawberry or Missisippi Mud– there is something for all lovers of Ice creams, Potato fries, Seafood, Chilli Garlic Bites, Cheese Jalapeno Nuggets, will keep one salivating for more. Those don't enjoy cooking but want yummy dishes that are ready to eat can choose from a range Parathas and seafood that can be ordered 24 x 7 online or by phone complimented with special offers.
Bühler presents its vision for a more sustainable rice processing future at the IRRI Interna onal Rice Congress Food safety and rice fortification on the agenda demonstrating how Bühler can help increase capacity, efficiency and quality throughout the supply chain London, United Kingdom, 9th October 2014 – The Bühler Group, the world's leading provider of rice processing equipment and solutions, will be reinforcing its commitment to encouraging the adoption of sustainable rice processing at the upcoming IRRI International Rice Congress 2014 in Bangkok, Thailand. Current global rice production falls far short of projected annual demand which is expected to reach 576 million tonnes by 2035 – requiring an increase of 116 million tonnes of rice production over the next two decades. This cannot be done by increasing yield alone and requires greater efficiency and quality control throughout the supply chain. Food safety is one of the most critical topics in rice processing today. There is a perceived lack of trust from consumers about the safety of their food supply and they are consequently becoming more and more conscious of the origins of the products they buy. At the same time, more rigorous safety regulation including that of heavy metal content and levels of mycotoxin in rice mean rice processors are faced by an ever more challenging environment in which to operate. Bühler has long partnered with rice processors globally to ensure high quality rice products. Today a HACCP (Hazard Analysis and Critical Control Point) is fundamental to safeguard the integrity and safety of the end product. Equally important is the design of a plant and its equipment. Bühler machines are designed with safety in mind, providing easily removable machine covers and screens for cleaning, as well as sealing systems to prevent any dust leaking out into the plant. In addition to plant safety, it is vital to reduce the risk of contamination. Bühler's state-of-theart optical sorting machines, including the new
Beverages & Food Processing Times
intelligent SORTEX S UltraVision™, are able to eliminate foreign material such as glass, stones, insects and straw, identify immature, discoloured or rotten grain, and also aid in the detection of mycotoxin contamination ensuring millers can deliver the safest and highest quality product to the market. Closely linked to food safety is quality. It is vital that millers increase yield and reduce wastage if the industry is to meet demand. In the marketplace, the value of rice depends on whiteness of the product and the lowest possible proportion of broken grain. However, the rice milling process is rigorous, and can weaken and break grain. Most breakage occurs during whitening, when pressurised grinding causes stress leading to temperature increase and a more fragile grain. Bühler has developed new technology which optimises the whitening process while reducing the risk of broken grain. The new UltraWhite™ rice whitener includes a shaftless milling chamber where fresh air is allowed to pass freely around rice kernels removing bran, reducing the temperature and decreasing breakage. Superior whiteness can be achieved with minimal input making this the most sustainable and profitable rice whitener on the market, able to handle 9 to 14 tonnes of brown rice using only a 55 to 75 KW motor power. Sujit Pande, Bühler UltraLine™ Product Manager commented: “As global population numbers swell, demand for rice is only going to increase. It is therefore vital that the industry comes together to bring about more sustainable rice production processes. Our machines have been engineered to deliver greater capacity, efficiency and profitability so that millers can increase yield at a lower cost while maintaining the highest quality end product possible.”
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COMPANY NEWS
Britannia makes way into kid's hearts with a new cookie ‐ Tiger Bu er Krunch
for News logon to www.agronfoodprocessing.com
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ritannia brand `Tiger' all set to take on mass cookie market. It makes way into kid's hearts with a disruptive new cookie - Tiger Butter Krunch. This will mark the entry of Britannia Tiger into the main stream cookies segment. Filled with the wholesome goodness and taste of butter, Tiger Butter Krunch brings alive the credo 'Makhkhan maar ke'. Packed with essential nutrients like iron, calcium and vitamins, Tiger Butter Krunch delivers a delightful cookie that promises to keep kids going the whole day. Ali Harris Shere, Director - Marketing, Britannia Industries Ltd. said "There is a unique Tiger inspired design on each cookie which builds brand Tiger's equity through product design." "With the launch of Tiger Butter Krunch, delightful butter cookies, brand Tiger is all set to take on the mass cookie market," he added. What differentiates Tiger Butter Krunch from others in the cookies space is the coming together of great taste and health. These tasty butter cookies are fortified with iron, vitamins and calcium. That makes it a magical product for both mothers and kids alike. "With Salman Khan as our brand ambassador, the communication will definitely be clutter breaking," Ali Harris Shere said.
Parle Products plans more crunch in its kitty to beat competitors
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arle Products has decided to add more crunch to its cookie offering even as competition is heating up between the company and rival Britannia. “Many of the Parle products, biscuits or confectioneries, are market leaders in their category. With a 40 per cent share of the total biscuit market, and a 15 per cent share of the total confectionary market in India, Parle is keen to launch more products in the premium segment, as well as strengthen its distribution reach,” said Mayank Shah, Group Product Manager. A Nielsen study has shown that Parle, Britannia and ITC have a combined 80 per cent share of the biscuit market. Stating that Britannia was losing market share to ITC and Parle, the official said Parle was “not particularly unnerved” at Britannia's plan to invest 150 crore over the next two years. Parle recently launched Parle Milano Centre Filled - Dark Cookies, which are dark chocolate shells with a chocolate cream filling. At the launch, Shalin Desai, Deputy Marketing Manager, said since the consumption of dark chocolate was growing at a rapid pace across the country, it was a strategic step to innovate the cookie category to suit the taste of most consumers. Parle has also announced a special offer for its Parle Kreams and Kreams Gold during the festival season, wherein consumers can win a host of products. Bhavin Panchamia, Senior Product Manager, Parle, said since consumer sentiments were buoyant during the festival season, the company decided it was the best time to interact with consumers via the promotion offer.
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COMPANY NEWS
Abbott unveils nutrition manufacturing plant in Gujarat
S-based Abbott has opened a new nutrition manufacturing plant in Jhagadia, Gujarat, which is its biggest investment in India to date. The new facility will work with the company's nutrition R&D centre in Bengaluru, to manufacture products like Similac, PediaSure, Ensure, Mama's Best and Glucerna.
The new facility is targeted at creating customised nutrition products to address the diverse and changing health needs of people in India. The company says that providing nutritional solutions and other healthcare products for families in India is just one part of its investment. To help local communities, Abbott will source 80% of its ingredients from local suppliers. To ensure that the company meets this goal, Abbott is developing a programme to work with around 1,500 dairy farmers in the region to
provide education and training to help them in increasing their milk supply. Through this strategy, Abbott will try to help farmers expand their operations, strengthen the local dairy industry and increase production of milk. Founded by Wallace Abbott who brought the company to India in 1910, the company today manufactures products and technologies for
products and technologies for sectors ranging from diagnostics to devices, from nutrition to pharmaceutical therapies. The company currently hires close to 70,000 people worldwide and has a presence in more than 150 countries. Headquartered in Mumbai, Abbott India is active in areas such as women's health, gastroenterology, neurology, thyroid, diabetes and urology, pain management, vitamins, anti-infectives and other therapy areas.
United States pleased over WTO ruling against India on Poultry
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nited states has welcomed the World Trade Organization's decision against India's ban on American poultry products, saying that the move would boost the country's export of poultry products to India.
measures to ensure food safety must be based on science and not a desire to restrict market access. Georgia is the fourth largest poultryproducing region in the world, so this means a great deal to our state economy," Isakson said.
"This is a great victory for the United States and Georgia poultry, in particular. I have been working to open up India to US poultry since this issue was brought to my attention," Senator Johny Isakson, a senior US senator ,ranking member on the Senate Finance Subcommittee on International Trade, said.
In a setback to India, the WTO on Tuesday ruled in favour of the US in a dispute over India's ban on various US agricultural products, including poultry meat, saying the Avian influenza restrictions imposed by New Delhi were imposed without sufficient scientific evidence.
"I am pleased that the WTO panel affirmed that
Isakson said for over seven years, India imposed import restrictions on various US agricultural products, particularly poultry meat, eggs and pigs, purportedly to prevent entry of avian influenza into India.
Meaty Issue W
hat is perhaps getting overshadowed in the political play is the fact that India today is the world's largest producer of buffalo meat, replacing Vietnam and is much ahead of developed nations like Australia and Argentina. According to official estimates, it is one of the fastest growing sectors in the country and has clocked a consistent compounded growth rate of 30-35 per cent in the last three years, something few other sectors are able to match. Meat exports—worth over $5 billion—constitute 12 per cent of all of India's exports. Of this, exports of buffalo meat alone are worth $4.4 billion, according to the Agricultural and Processed Food Export Development Authority (APEDA), a body under the Ministry of Commerce. Says APEDA Chairman Santosh Sarangi, “After Basmati rice, buffalo meat is India's largest export commodity in terms of value. Last year, we exported 1.4 million tones of buffalo meat from India.” The other—including chicken, goat and pig—meats are also exported from India. But in smaller quantities as the demand for these products is very high in India. Also, these products fetch a much higher price in India which discourages units engaged in this business to look for exports. There is very limited consumption of buffalo meat in India, which is restricted to a few states only. While there are 33 approved abattoirs and over 50 integrated units which have both abattoirs and processing facilities in India, there are over 20,000 units which are involved in the trade. Contrary to public belief, many of these units are either fully owned, or run by non-Muslims. The V.H. Group, promoted by Dr B.V. Rao,
which markets its products under the brand Venky's, is one example and is one of the biggest players in poultry products and eggs. The political talk of shady companies entering the meat trade is negated by the fact that the government has already mandated meat slaughtering and processing units to be registered with APEDA. It is also a fact that India follows a strict and layered system of registration that not only looks at issues such as hygiene, sanitation standards and quality but also at the ownership of the companies.
Moreover, the registration for abattoirs is valid for just one year and has to be renewed annually while that of processing units is valid for two years. Exporters feel that the meat industry is a feeder to many other ancillary industries which feed on the byproducts of this sector. Says Ajay Sahai, DG and CEO of the Federation of Indian Export Organisations (FIEO), “The issue has to be seen in totality. The Buffalo meat industry supplies leather to the leather industry where India is an emerging exporter. At present we account for just 3 per cent of global leather exports but in value terms it is worth $ 9 billion and is growing very fast.”
White stem borer menace in coffee to be tackled by government
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eaching out to the coffee industry stakeholders, Commerce Minister Nirmala Sitharaman said that issues faced by growers relating to white stem borer menace, transfer of technology and the rainfall insurance scheme would be looked into by the Government. Addressing the first stake holders meet of the coffee industry in Bangalore, Sitharaman said that a focussed study group would soon be formed by the Commerce Ministry and the Coffee Board to understand research made so far on the white stem borer. The idea is to collate all credible information relating to borer by the start of next season. The borer menace, unique to the Indian arabicas -- the milder and premium coffee grown in the country -is threatening to drive the Arabica variety to extinction. Production of arabica has come down significantly in the past few decades. Growers point out that arabica, which used to account for about 82 per cent of India's total coffee output in the 1950s is now down to around 33.6 per cent of the country's total coffee produce. Sitharaman also told the growers that issues relating to transfer of technology for the equipment used by the growers and the need to incentivise them would be looked into. While large growers are able to afford the equipment by importing them, the smaller growers are finding it difficult to address the manpower shortage amidst
Beverages & Food Processing Times
rising labour costs. A section of the growers also blamed the labour shortage to the national rural employment scheme. Growers raised the issue of social costs, taxation while some demanded that current rainfall based insurance scheme need to be restructured as rainfall pattern across key growing regions mainly in Karnataka, which accounts for about 70 per cent the country's coffee, has seen wide fluctuation in recent years. Also, they demanded that relief extended to small growers should also be given to those with landholding of over 10 hectares wherever crop loss due to heavy rains has exceeded 50 per cent. Earlier in her opening remarks, the Minister expressed displeasure over the functioning of the commodity boards and asked them to beef up their performance. “I am thoroughly unhappy with the boards (all commodities boards) as they are where they were. I am sorry to be blunt. The boards must sit up. Not just sit up but do a lot as I am answerable for their functioning. They have to do their bit” Sitharaman said. India's coffee exports in current calendar year till September 17 stood at 2.35 lakh tonnes, marginally lower that corresponding last year's 2.45 lakh tonnes. Output for the 2014-15 season is projected to be 3.44 lakh tonnes, as per the post blossom estimates over last year's 3.04 lakh tonnes.
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Mondelez to invest $90m in new biscuit manufacturing plant in Bahrain
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s-based Mondelez International is planning to invest $90m to build a new biscuit manufacturing plant in Bahrain. The new facility, which is part of the company's efforts to cater to increasing demand in the Middle East and Africa, is claimed to be the company's most advanced biscuit manufacturing plant and will be used for its brands such as Oreo, Ritz and TUC biscuits. Commercial production is scheduled to commence during early 2016. During the initial two to three-year phase, four biscuit manufacturing lines will be operated, with an overall capacity of approximately 90,000t a year. "This investment in Bahrain is part of our ongoing supply-chain reinvention plan." Mondelez Integrated Supply Chain executive vicepresident Daniel Myers said: "This investment in Bahrain is part of our ongoing supply-chain reinvention plan. "We're implementing several such initiatives around the world to capitalise on growing demand, while also reducing costs and improving productivity. "We're pleased with our progress in regions such as Mexico and India, where we've already begun to invest." Over the following three years, the company's supplychain reinvention scheme is expected to deliver $3bn in gross-productivity savings, $1.5bn in net savings and $1bn in incremental cash. Mondelez International Middle East area vice-president Vishal Tikku said: "We are investing for the future, and are very grateful to the Government of Bahrain for its long-standing and unwavering support of our investments here. "We are seeing very rapid growth for our iconic brands across emerging markets, including the Middle East and Africa." By the end of the initial phase, the new plant will create around 300 direct jobs and, depending on future investment decisions, has the potential to generate 700 more direct jobs and sustain thousands of indirect jobs.
Bakers Circle hires Langham Capital to
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raise 30cr from market
elhi-based food services company Bakers Circle has appointed investment bank Langham Capital to advise it for raising Rs 30 crore in growth capital and another Rs 30 crore in secondary. The new funds will be used to scale up operations in India and set up a new plant in the UAE to enter the overseas markets, a source close to the development told. The company had previously raised $6 million from GEM India Advisors, DSG Consumer Partners, Yukti and Haystack Investments. Bakers Circle is the producer of high quality frozen dough and confectionery in India. Company product and clients stand testimony to 10 years of service to the quick service restaurant system in India with a reach of over 2000 stores and counting. Company has high quality, state of the art facility ensure only the best make it from our farms to your forks.
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COMPANY NEWS
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NEWS
SVE 2520 AR- Best way to Pack your Snacks!
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nacks market in India is growing rapidly. There are many factors contributing towards this growth. The main factors are as follows: · Higher disposable income of the population which in turn increases their purchasing capacity · Rapid urbanization leading to inclination towards packaged food · Lucrative marketing campaigns by the players in this industry · Growth in the working women population · Fast expanding retail network The growing snacks market is also increasing the pressure on the players to perform better and to move ahead of competition. More than a good marketing campaign and competitive pricing, the product quality plays a crucial role in succeeding in this competition. The quality of the snacks is not only defined by its ingredients, taste and preparation, but also by the way it is packaged. Following are the main characteristics of a good packaging: · It should be air tight · It should be easy to tear · It should maintain product integrity and freshness On 14th Nov, 2014, Bosch Packaging Technology is going to display it's high speed packaging machine SVE 2520 AR at Pack Ex exhibition to be held at Bombay exhibition center. This machine is especially designed to target the potato chips, extruded snacks and Indian namkeen segment. SVE 2520 AR, a continuous motion bagger with a multihead weigher is a fully integrated packaging solution with speeds and precision to match your business needs. The machine can achieve a speed up to 140bpm for extruded snacks. It comes with reliable SERVO technology with low maintenance, precise and controlled machine movements that improve speed and bag quality. This machine can be easily combined with upstream and downstream equipment to give you a complete, end to end solution.
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"Quality in everything we do" Tanya Exports leading exporters food colors
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Manish Shah
ANYA EXPORTS has grown-up steadily and today it is one of the forefront companies manufacturing and exporting Dyes, Leather Dyes, Pigments Powder, Food Colors, Textile Auxiliaries, Whitening Agent, etc. They believe in innovation, entrepreneurship, international standards and best quality in order to challenge any competition globally. Company has highly experienced professional team who commands the responsibility of manufacturing and relieving finished batches. The Company also has immaculate record of customer satisfaction over the last two decades of its existence. "Quality in everything we do" With this motto, Tanya has developed systems and process as per ISO 9001 :2000 for quality management, human resources development, information technology and technical upgradation for various production stages so that the Company may have a strong footing in its international operations. Around 95 percent of the Company's products are being exported world-wide including USA, UK, Germany, South America, Middle East, South East etc. The Company has earned remarkable growth in its exports business over the years with excellent rapport with world-wide quality conscious buyers and attributed to customers satisfaction. TANYA EXPORTS is: ISO 9001 : 2000 Certified Registered with Federation of Indian Chambers of Commerce and Industries (FICCI) CHEMEXCIL, Bombay Gujarat Dyestuff Manufacturer's Association Member Gujarat Chambers of Commerce and Industries Member of Vatva Industries Association In the business of Colors the prime objective of the Company is to keep a lasting impression of 'best quality' in the minds of our valued clientele at large.
Chaitanya Group A Leading food & feed ingredient manufacturer from India
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haitanya Group of industries is ISO: 9001-2008, HALAL, GMP & HACCP certified leading manufacturer, exporter & supplier of a wide range of nutraceuticals & pharmaceutical raw material, dehydrated media ingredients, agriculture & animal feed ingredients in bulk. Chaitanya group engage in manufacturing nutraceuticals and several pharmaceutical raw materials. Chaitanya Chemicals established in 1987, mainly deals with proteins and protein products catering to the nutritional requirements of human, animal and agriculture. With the starting of the Chaitanya Biologicals Pvt. Ltd., in 1994, has entered the business with the range of iron compounds and nutraceuticals. Highly qualified technocrats head these departments. Under the guidance of highly qualified and disciplined management, Chaitanya group now widens the area of operation from pharmaceuticals to food, veterinary, poultry, microbiology, cosmetic and agriculture sectors. Chaitanya has also been catering to the needs of fermentation and biotechnology based industry. With the starting of the Chaitanya Agro biotech Private Ltd. in 2008, the group entered the business with the range of food flavor enhancers like HVP, Yeast extract and Malt extract. The company is having an ultra modern laboratory, Research and Development department and Quality Control department under its umbrella. Highly qualified technocrats head these departments. Chaitanya group with continuous efforts, and strict adherence to the quality and the policy “To provide products and services of the highest standard at reasonable cost to satisfy the customer's present and future needs and expectations of quality, safety, reliability and service has added names of number of national and international customers to the client list.
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Vol. 7, Issue 06 - November - 2014
Beverages & Food Processing Times
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Vol. 7, Issue 06 - November - 2014
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Vol. 7, Issue 06 - November - 2014
Indian Ice Cream Congress held in Mumbai with greatest ever participation and footfall With 425 delegates, 48 stalls and 10000+ visitors IICE made history in Indian ice cream industry. IICE is a unique platform for Indian ice cream manufacturers and allied segments. During the conference a number international speaker made presentations. Kirit Somaiya, Member of Parliament was the chief guest of the event. Somaiya said, “I still remember those days when we used to have only two brands, Kwality and Joy and there was only one ice cream factory in Worli in Mumbai. From those times to now India has changed and now we have hundreds of brands and flavours”.
China and USA. Sudhir Shah, Secretary of IICMA informed the gathering during his thanks note that Indian Ice Cream Congress will be held in Bangalore next year during the same period. Shah also informed that Indian ice cream industry is moving the right direction and with the same pace we will soon be dis
fruits and ice cream can do wonders, especially the strawberry and mango. B Thiagarajan, Executive Director, Bluestar Limited supported the IICMA's view for a creating a united brand. He said Bluestar will always be on fore front in supporting such causes. G Chandrashekhar of Hindu Businessline
There were a number of foreign speakers who presented some global trends, “Future of Ice Cream production in India by Ejvin Lund of Tetrapak. “Latest Trends in Cone Making in European Market Hans Peter Trosse of Big Drum Engineering, “Indian Ice Cream Industry: Overview, Outlook and Opportunities” by Janaki Padmanabhan of Euromonitor International.
Kirit Somaiya assured Indian Ice Cream Manufacturers for all support in developing the industry especially for the export development. Ice cream industry can repeat the IT industry business module, manufacturing in India and exporting to the rest of the world, said he.
Two days event catered almost everything Indian ice cream industry looks for. There were a number of stalls from different allied segments of the industry. Ice creamingredients, raw material, processing and packaging machinery, cones and cup manufacturer and cold chain companies, all participated in the expo.
Somaiya also mentioned that we also need to develop machinery industry for the processing and supply chain management of the Indian Ice cream industry. He said India is open for the foreign machinery manufacturers who are interested in establishing manufacturing units in India. This will increase employment in India and ice cream industry can experience best technologies available locally. Pardeep Chona Treasurer of Indian Ice Cream Manufacturers Association and CMD of Havmor Ice Creams informed during his inaugural speech that IICMA has decided to celebrate National Ice Cream day on every 2nd Sunday of April. Association will also seek views from different quarters to promote a united ice cream brand in India to counter the myths about ice creams and for increasing the per capita consumption in the country which is way low in comparison with
“Advances in Storage and Display Technique” Srikant Subramaniam of Blustar India, Updates on taxation (Service tax, Central Excise, GAST) for Ice Cream Industry by L Badri Narayanan of Lakshmikumaran & Sridharan Attorneys, Mumbai, “New Concepts for Cold Storage for Ice Cream Industry” Srinivas Reddy of Bluestar, “Price outlook for industrial chocolates in India 2014-15 P. A n a n t h a P a i , o f S o u b h a g a y a Confectionery.
Firoz H Naqvi, Organiser of the event informed that next year this event will be of double size and the response was better than expected. “We are expecting 200 exhibitors next year in Bangalore, he added. cussed in global circles. Dinesh Waghmare, Managing Director MAIDC made presentation on “Maharashtra a destination for Ice Cream Manufacturers”. He mentioned that Maharashtra is sixth largest producer of milk in the country and one of the largest processors and consumers of ice creams. Being the largest producers of fruits in the country combination of
newspaper made an eye opener presentation on Indian macro-economy and ice cream market prospects. There were a number of informative presentations made by other speakers such as “Labeling and Packaging Regulations in India” by Girish Pai of Natural Ice Creams, “Ice-cream Global Market & Trends” Anurag Jain of Dupont,
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Naqvi also informed this event also had an entertainment night with mix of national and international talent followed by gala dinner. This entertainment night has a great craze among the ice cream manufacturers and allied segments because it gives them an opportunity to interact with the people from far places.