Beverages & Food Processing March 2018 by Advance Info Media & Events

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Vol. 10, Issue 10 -March- 2018

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Red light for fast foods, carbonated beverages & confectionaries

he Food Safety and Standards Authority of India (FSSAI) have released a draft ‘Food Safety and Standards (Safe and Wholesome Food for School Children) Regulations, 2018 that listed dozens of food items in three categories. The foods and beverages categorized as green or yellow may be included on the school menu and food business operators manufacturing HFSS [high in fat or salt or sugar] food products shall not advertise such foods to children in school premises. Proposed regulations to introduce traffic light health labelling for food products in Indian schools have infuriated leader of the country’s processed food industry association. Under the proposed rules, schools will be asked to make distinction between eatables marked green, yellow and red. While green will comprise of fresh food, yellow will imply packaged food and red colour will mean food items high in salt, sugar and fat. The draft rules suggest that food and beverages categorised as green or yellow should be largely

be on school menus and items labelled as red, with high fat, salt and sugar (HFSS) content will be discouraged from being sold or provided inside school campuses. The proposals also say that a balanced diet for school-goers is one that “should provide about 50-60 per cent of the total calories from carbohydrates (preferably from complex carbohydrates), about 10-15 per cent from proteins and 20-30 per cent from both visible and invisible fat. Subod Jindal, President of All India Food Processors’ Association, warned a law could force manufacturers to use the system for entire ranges of their products, regardless of where they are sold, including jams, juices, butter, pickles and Indian

condiments, as well as basic recipe ingredients such as meat and vegetables. Even though Jindal agreed the proposed regulation is a guideline to make aware the requirements of balance diets in schools, he said some “lobbies are trying to extend this logic to put a green yellow dot on every single bottle or pack or can or jar made in the country by any unit.” He claimed representatives of international manufacturers of salt substitutes had been trying to influence the drafting of the regulation to have this impact. This is a strategy to confuse the Indian consumer and to upset the industry. The industry will get into conflict with the regulatory authorities

and there would be lot of litigation,” Jindal said. His anger has been raised by the Food Safety and Standards Authority of India (FSSAI) releasing a draft ‘Food Safety and Standards (Safe and Wholesome Food for School Children) Regulations, 2018,’ which listed dozens of food items in three categories. “The foods and beverages categorized as green or yellow above may be included on the school menu,” it said. FSSAI contested that the final regulations would force manufacturers to take these steps and FSSAI is not asking the industry to change any sort of the packaging or labelling as per these regulations, it is just an advisory for the schools. The law would allow schools to develop their own innovative ways to indicate compliance with the rules, such as placing red, yellow or green stickers on food items sold in the school or placing the packages in the shelves as per their colour coding. The FSSAI will review comments and objections to the new regulation before a final draft is written and the law can come into effect.

Vol. 10, Issue 10 -March- 2018

FOOD PROCESSING NEWS

FPOs, Operation Greens will Several development plans for benefit food processing industry food processing and agri sector

he most content with budget announcement for this fiscal year are food processing and agricultural input companies as they feel the government taken steady steps to push agricultural sector in India.

expensive.” The food processing sector is happy about the scheme promoting cluster based development of agri-commodities and regions in partnership with the Ministries of Food Processing, Commerce and other allied Ministries.

Though analysts are cynical about the government’s announcement to hike MSP, industry is hopeful that the government would move fast on this and put more money in hands of the farmers, considering that it will be an election year.

“Cultivation of horticulture crops in clusters bring advantages of scales of operations and can spur establishment of entire chain from production to marketing, besides giving recognition to the districts for specific crops,” said Finance Minister Arun Jaitley in his Budget speech.

Managing Director of Jain Irrigation, Anil Jain said “The announcement of giving MSP of 50 per cent over the cost of production will give money in the hands of farmers. It means farmers will spend more money on inputs.” One of the leading companies involved in processing and export of mangoes and onions, Jain Irrigationhas already started working on the idea of creating market for dehydrated onion powder and tomato puree in India. “We have already started working on educating the consumers to use the processed products when fresh supplies become

Jain said “Cluster development of commodities will create conducive environment for the food processing industry.The agricultural-based industry has hailed various sops announced for Farmer Producer Organisations (FPOs). “Having strong FPOs will make it easy for the input companies to sell their products to farmers. It will also facilitate the food processing companies to buy what the FPOs produce.”

resenting the budget for 2018-19 fiscal, Finance Minister Arun Jaitley said the food processing sector is growing at an average rate of 8 per cent per annum. To ensure better returns to farmers, the government doubled budget allocation to the food processing ministry to Rs 1,400 crore for 2018-19 fiscal and set up institutions to finance agro-processing projects. Each district to focus on cultivation of specific crops, the government will re-orient current schemes and promote cluster-based development of agri-commodities. The government has proposed to hike customs duty on orange fruit juices from 30 to 35 per cent, on other fruit juices and vegetable juices from 30 to 50 per cent, on cranberry juice from 10 to 50 per cent and on miscellaneous food preparations (other than soya protein) from 30 to 50 per cent. To help the cashew processing industry, it has proposed to cut customs duty on raw cashew from 5 per cent to 2.5 per cent. Out of the total funds allocated for the ministry for the next fiscal, Rs 1,313.08 crore will used for implementation of Pradhan Mantri

Kisan Sampada Yojana (PMKSY), which is higher than Rs 633.84 allocated for the current financial year. Under the scheme, the funds are given as grant-in-aid for setting up of mega food parks, development of infrastructure for agro-processing clusters, integrated cold chain and value addition infrastructure, creation of backward and forward linkages among others. About Rs 61.20 crore has been earmarked for Indian Institute of Food Processing Technology (IIFPT) and National Institute of Food Technology Entrepreneurship and Management (NIFTEM) for the next fiscal. To facilitate financing for specialised agro-processing projects, Jaitley announced setting up of specialised agro- processing financial institutions in this sector. He said Rs 500 crore has been allocated for the Operation Greens to promote Farmers Producers Organisation (FPOs), agri-logistics, processing facilities and professional management. To encourage FPOs in post-harvest activities of agriculture, Jaitley said the government will allow 100 per cent tax deduction to FPOs having annual turnover of Rs 100 crore in respect of their profit derived from such activities for a period of five years from 2018-19 fiscal. Food Processing Minister Harsimrat Kaur Badal said that it will immensely benefit farmers in availing various food processing related schemes and increasing their income and also will generate millions of new jobs.”

Food processing sector signs 168 MoUs with Andhra Pradesh

ndhra Pradesh government signed 168 Memorandums of Understanding (MoUs) with food processing sector. The food processing industry is proposing to invest Rs 3,424 crore in the sector and will create 48,298 jobs. Meanwhile, Tata Industries Ltd has been tasked with piloting the business group’s entry into the high-tech sector, informed that its ready-to-eat (RTE) factory would be commissioned in Andhra Pradesh by the end of 2018.

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Tata Industries Ltd. installed state-of-the-art equipment at its unit in Andhra Pradesh. The equipment, sourced from a company in the United States, would help in making cooked food into RTE stuff. And this project was B2C, or business-to-consumer type. Union food processing secretary J P Meena said Andhra Pradesh has some of the most “progressive” policies among Indian states in the food processing sector. He added that the central government had created a special fund of Rs 2,000 crore, administered by NABARD, to help in the setting up of food parks in the country.

Vol. 10, Issue 10 -March- 2018

FOOD PROCESSING NEWS

Food processing sector to attract USD 14 bn in 2-3 yrs

ith getting sufficient funds for growth of food processing segment, Minister of FPI, Harsimrat Kaur Badal is anticipating that this industry will attract investments to the tune of 14bn USD in next 2-3 years. Food Processing Minister said “the sector would attract an investment of USD 14 billion over the next 2-3 years as committed by the domestic and foreign investors during the World Food Summit. The government has doubled the budget outlay for the ministry to Rs 1,400 crore for next fiscal and the amount would be used to improve processing infrastructure and setting up of cold chain grids. Also the government targets to double food processing level to 20 per cent. “Memorandum of understandings (MoUs) for investments worth USD 13-14 billion was signed during World Food Summit. These MoUs are being monitored by me personally,” Badal said on the sidelines of a conference ‘One Globe Forum2018’. The World Food India 2017 was organised by the

government last November.The minister said that these MoUs are not just papers and all the investors have initiated work to set up projects.”Within 2-3 years, we will see grounding and operationalisation of most of these MoUs,” adding Amazon has already started setting up food processing projects in the country. When asked about the sharp increase in Budget allocation for the sector, she said the fund would be used to create infrastructure at farm-gate level besides for preservation and processing of perishable fruits and vegetables so that the wastages could be reduced. India is estimated to lose fruits and vegetables worth millions of dollar in absence of adequate food processing infrastructure and cold storages. Badal further said cold chain grid would be set up across the country for seamless transfer of agricultural item from producing centres to consumption points.

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Vol. 10, Issue 10 -March- 2018

FOOD PROCESSING NEWS

Israel to start Food Processing Chief Minister of Telangana proposes 100 food processing units Center in Northeast

s various sectors in Indian food industry attract significant investment, the resultant fruits can be seen in economic growth of the country. An Israeli delegation led by its Ambassador to India, Daniel Carmon called on Union Minister of the Ministry of Development of North Eastern Region (DoNER), MoS PMO, Personnel, Public Grievances & Pensions, Atomic Energy and Space, Dr Jitendra Singh and confirmed that first – ever such Center for Northeast will be inaugurated in Mizoram on 7th of March and it will become functional. Israeli Government will start the first-of-its-kind ‘Food Processing Center’ in Northeast.

The project has been set up with tripartite collaboration of the Government of Israel, State Government of Mizoram and Ministry of Agriculture and Farmer Welfare, Government of India, while the Ministry of Northeast (DoNER) will perform the role of coordinator and facilitator. Although located in Mizoram, this Center will cater to the entire North Eastern region. To begin with, this Food Processing Center will concentrate exclusively on the processing of ‘citrus’ fruits and Israel will provide the bulk of expertise knowledge and professional support. Dr Jitendra Singh said this Center is a beginning of a wider and larger collaboration between India and Israel. With the passage of time, the various activities of Food Processing Center will be extended and widened, and from the experience of this experiment, there could be possibilities of contemplating collaboration with Israel for setting up similar more ventures in different States of the North Eastern region.The new Food Processing Center will benefit the entire North Eastern region and in the long-term provide resource inputs to farmers from other parts of India.

ith emphasis being given to food processing sector, the Chief Minister of Telangana, K. Chandrasekhar Rao has proposed a hundred food processing units in at least one in each Assembly constituency of the 30 districts in the State. In a meeting specially discussed on welfare of farmers, he asked officials to explore the means for Central funding to food processing units. To encourage farm mechanisation, he ordered supply of plantation machines at 50 per cent subsidy in all mandals. The meeting, attended by Ministers, MPs and officials, also took up government programmes, free round-the-clock power supply to agriculture, supply of seed and fertilisers, irrigation projects, input subsidy to farmers and formation of coordination committees of farmers. Rao stressed on the need for more ginning mills and formation of rice mills cluster due to the possibility of higher paddy cultivation in kharif on account of availability of plenty of rain water.

Ministers should initiate measures to form coordination committees of farmers at village, mandal and district levels. A State-level committee which would enjoy the position of a corporation would be headed by a higher official. Conferences of members of village, mandal and district committees should be organised in four corners of the State and a public meeting at the Parade grounds here after the State level committee was constituted. Discussing the functions of the committees, he emphasised the need for mandal and village panels to interact on crop cultivation and ensuring minimum support price for farmers. The committees would regulate the arrival of agricultural produce at the market yards. Stocks for the market yards to handle on any given day should be shifted. The committees should purchase the material if the market yards could not absorb. The role of Marketing Federation (MARKFED) should be redefined in the backdrop of constitution of coordination committees. Rao announced the constitution of a Cabinet sub-committee with Mr Pocharam Srinivas Reddy (Agriculture), Mr. Eatala Rajender (Finance), T. Harish Rao (Marketing) and K.T. Rama Rao (Industries) as members to take steps to prevent food adulteration, encourage food processing industry and ensure MSP for farmers.

Japan sees great potential in food processing sector of India

t the joint meeting of India-Japan Business Cooperation Committee organised by industry bodies FICCI and Japan Chamber of Commerce and Industry, Japanese Ambassador to India Kenji Hiramatsu said in area of urban development, Japan was helping India to develop Chennai, Ahmedabad and Varanasi as smart cities. A FICCI report released at the event cited the areas of cooperation between India and Japan, including high speed railways (linking Mumbai and Ahmadabad) and building Japanese Industrial Townships. The ambassador said there was plenty of room to expand India-Japan ties, especially in food processing, urban development, environment and sanitation as well as medicine. He wants Indian government to address Japanese firms’ concerns that are taxation, financial regulation and infrastructure. He said the other priority areas for cooperation included water supply, sewage treatment, natural disaster management techniques, internet of things, artificial intelligence, robotics, start-ups and industrial corridors. Japanese firms have been pitching, among other things, for improved infrastructure in India, uninterrupted power supply, reduction of Goods and Services Tax on hybrid and electric cars, easing foreign currency norms, including on external commercial borrowings.

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Vol. 10, Issue 10 -March- 2018

Govt. puts continuous efforts to develop rural infrastructure

ith the great emphasis laid on agriculture sector and objective to double farmersâ&#x20AC;&#x2122; income, the government is making efforts for infrastructural development in the rural sector. Prime Minister, Narendra Modi has prepared to invest more in the agriculture sector and food processing by 2022 to make it more profitable. Union Home Minister Rajnath Singh was present at inaugural function of National Krishik Samaj convention. The minister said that since the input cost of agriculture was increasing, any amount of subsidy would fall short. Farmersâ&#x20AC;&#x2122; should engage in poultry, animal husbandry and fishing to increase their income. Singh said to protect their interest, the NDA government has been giving insurance benefit even for 30 per cent crop loss. At least one son of a farmer should engage himself in other sectors, apart from farming. Even today, over 55 per cent of the population is engaged in agriculture and the Green Revolution should be a permanent feature to attract youth into agriculture. He calls the farmers a brave community, because unlike an industry, the agriculturist engages in farming knowing well that the sector was not profitable.

Danfoss to play big role in food processing in India

anfoss, a multinational specializing in energy efficient technologies with a turnover of Rs. 1,000 crore in India is entering the food world in India. Danfoss global Head Noel Ryan and Danfoss India Head Ravichandran Purushothamam stated that India in general and Andra Pradesh in particular had emerged as a very big market for them. The giant company has big plans for Andhra Pradesh in contributing to cold storage for seafood industry, food processing and providing refrigeration and air-conditioning for major industries including Visakhapatnam Steel Plant. Danfoss was interested to play a big role to benefit the dairy and animal husbandry sector.Welcoming the Union Budget proposals, they said the food processing sector was poised for exponential growth with the government setting a target of doubling the processing levels to 20 per cent by 2019 from current level of 10 per cent. They said Indiaâ&#x20AC;&#x2122;s food services industry was projected to grow to Rs.4.98 trillion by 2021.

FOOD PROCESSING NEWS

Vol. 10, Issue 10 -March- 2018

FOOD PROCESSING NEWS

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Proposals worth USD 13 billion in food processing sector analyzed

he government is making efforts to translate proposals worth USD 13.56 billion made in the food processing sector by domestic and foreign investors into actual investment. USD 13.56 billion investment was committed by investors during the World Food India 2017 organised by the government. Minister of State for Food Processing Industries Sadhvi Niranjan Jyoti said in a written reply to the Rajya Sabha. “Efforts are being made to ground these investment intents at the earliest by facilitating the investors/ potential investors. The purpose is to create an additional milk processing capacity of Rs 12.5 million litres per day in the cooperative sector.” Initially, funds will be provided to 39 profit-making milk unions and later other milk cooperatives will be considered based on the eligibility criteria, she added. Minister of State for Agriculture Krishna Raj said in a separate reply. “To modernise and upgrade infrastructure for dairy processing and value added products, a dairy processing and infrastructure development fund with a corpus of Rs 8,004 crore has been created to help milk cooperatives.

Modern technology to promote food processing industry

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ood Processing Secretary J P Meena Food processing industry said that focus on areas such as modern machines, technology and bio- degradable packaging to overcome the challenges facing the sector and promote its growth. Also the government is working to resolve issues related to credit availability to the industry. There is a need to work on refining infrastructure for food processing sector to increase exports, reduce wastage and supply the products in every nook and corner of the country. The sector faces several challenges in areas like credit availability, modern machines as well as technology and bio-degradable packaging material. Now the food ministry would be working with the industry players on programmes where they can become partners in raising institutions to lend to the sector. The industry mostly imports machines and technology, but now they should focus on strengthening their research and development in this area, Meena added. He also said that to deal with the problem of packaging material, the industry should work on alternate products to replace plastics. To ensure better returns to farmers, the government has doubled budget allocation to the food processing ministry to Rs 1,400 crore for the fiscal 2018-19 and set up institutions to finance agro-processing projects. There is need for FSSAI to work on traceability area of the sector as lot of concerns were raised regarding use of pesticides in leafy vegetables and fruits. Currently, there is no mechanism to measure level of pesticides in fruits and vegetables. Also the industry must work on standards to promote the quality of products. Taking about following rules and regulations, Meena has asked the industry not to set up units "anywhere and everywhere" and instead use infrastructure created by government including clusters and food parks. Commerce Minister Suresh Prabhu said that under the proposed new industrial policy, the ministry is trying to identify sectors which would be growing at faster rate in the coming years and "food processing is one such sector". He said there is huge scope and opportunity to boost exports of marine products and processed food items.

Vol. 10, Issue 10 -March- 2018

BEVERAGES NEWS

Manpasand Beverages plans pan-India growth by 2020 with 20 plants

everage manufacturer Manpasand Bevarages Ltd s announced Q3 results, wherein reported 64 per cent rise in net profit at Rs. 11.91 crore in the third quarter as against net profit of Rs. 7.24 crore in Q3 of last fiscal. Total Income for Q3 of FY 17-18 at Rs. 148.43 crore was higher by 32 per cent over previous fiscal’s same quarter total income of Rs. 112.15 crore. Commenting on the successful growth, Chairman Dhirendra Singh said Manpasand aims to have 20 plants pan-India by 2020 in its effort to drive volumes,. With water being the most in-demand drink, they would launch multiple facilities of packaged drinking water. “For a country whose per capita consumption of cold drinks stand at mere 6 litres against 90 litres in US, we need to have more affordable products to drive sales. We can beat MNCs only by creating volumes and flooding the market with desi brands.” Singh added he will set up new plants across the country to tap rural markets in particular, that are still brand agnostic. “We need to create footprint in villages with products priced at not more than Rs 5 and Rs 10. If HUL can have multiple products for body care, we as a beverage company too should offer multiple variants to the consumer.” Manpasand should process 5 times the quantity of pulp by 2020, the factories process currently (12,000 tonnes per annum). The company clocked a turnover of in excess of Rs 750 crore in 2016-17. Manpasand has been laddering successful growth through its flagship brand Mango Sip with 75 per cent share in the revenues – has tied up with Parle Products to cross promote products. This would enable Manpasand to get access to the 4.5 million outlets of Parle Products spread across India. “Distribution continues to be challenge in FMCG and if a brand is able to set up a good network, then capturing any market is a cakewalk.”

Thums Up to enter Southeast Asian market

everage major Coca-Cola plans to take their popular carbonated cola brand Thums Up to Southeast Asia before launching it globally. Coca-Cola India and South West Asia President T Krishnakumar said “We are all set to take Thums Up to other parts of South Asia possibly by March 2018.” Thums Up is also first Indian brand that will become a USD 1 billion (approx. Rs 64,000 crore) brand much before the targeted timeline of 2020. It is a 40 year-old brand which has been with US beverage major for the past 26 years. In 1993, Coca-Cola bought Thums Up from Parle Bisleri Ltd. Coca-Cola has 40 brands in India including Thums Up and Thums Up Charged. Krishnakumar said, “We pride ourselves in creating billion dollar brands and this is an opportunity for the first brand from India to get into that league.” While Thums Up is also manufactured in limited quantities the Middle East, to cater to the Indian diaspora, this is the first time it will be launched and marketed outside India. The variant chosen for the global launch is the recently launched Thums Up Charged which has a higher proportion of caffeine and a taste identical to the original drink. Ramesh Chauhan sold the brand to Coca-Cola in 1993 to seek his blessings and wishes for the journey ahead, Krishnakumar added. Coca-Cola’s President - Asia Pacific, John Murphy said India was the 6th largest market for the brand and he expected it to become the fifth largest market

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Vol. 10, Issue 10 -March- 2018

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Vol. 10, Issue 10 -March- 2018

BEVERAGES NEWS

RoohAfza drink enters UAE market

opular beverage brand RoohAfza by Hamdard Laboratories, a top FMCG company in India looks to capture the UAE market with the launch of their brands there. The announcement was made at the recent Gulf Food expo in Dubai, with a promise to see other popular brands from the company within this year, the next one being Safi, the unique skin cleanser and blood purifier from Hamdard. Roghan Badam Shirin, Joshina, Sualin, Cinkara tonic and huge range of Unani products will be launched eventually. Chief Sales & Marketing Officer, Hamdard India, Mansoor Ali said “RoohAfza enjoys 45 per cent market share in India within its category. With cinema as strategic partners for UAE, we have already made inroads into the market by forging critical relationships with the modern and general trade. Consumer activation and awareness through sampling will be key, as we intend to have a large chunk of the UAE population actually experience the magic of Indian RoohAfza. In fact the sensorial experience and the refreshment coming from the therapeutic essence of the herbal ingredients of RoohAfza are unbeatable, and evoke a sense of deja vu every time it is consumed. RoohAfza has been growing at a phenomenal rate of 20 percent year-on-year when the FMCG industry itself is only growing in single digits. It controls nearly half of India’s concentrated syrup market worth about Dh600 million ($163 million).” The secret of RoohAfza’s successful growth can be attributed to company’s decision to stay with the original flavour and recipe over century when the average consumer is actually spoilt for choice. Last year , Hamdard launched RoohAfza Fusion in India, a unique combination of RoohAfza with pure fruit juice. “We may soon launch our Fusion

Aspartame back again in diet Pepsi

epsiCo is adding aspartame back to its flagship Diet Pepsi product. The company pulled the controversial ingredient in 2015, but brought it back in limited quantities a year later after backlash from brand loyalists. The aspartame-free version will still be available, but only via e-commerce. Despite confusing research and health concerns about aspartame, Diet Coke never changed its aspartame-based recipe, which has given the drink a market advantage. In 2017, sales of Diet Pepsi’s aspartame-free product dropped by 8 per cent while Diet Coke fell 2.5 per cent. Diet soda sales have experienced steep declines in the last 20 years as beverages have become more diversified and consumers more health-conscious. Coca-Cola and PepsiCo have jumped into new markets, including water and sports drinks, to expand their portfolios and drive growth. Diet soda has been going through an identity crisis since reaching its $8.5 billion sales peak in 2009. Since then, consumers have not only craved more beverage varieties — teas, water, energy drinks as they have increasingly turned away from soda for health reasons. This rejection extends to diet soda as well, which has experienced a 20 per cent drop in sales in the last 10 years. The original Diet Pepsi will be back in full effect. But confusion among consumers could be a challenge as the company shifts its marketing plan to focus on the original, aspartame-included formula and other core products.

line in UAE and Gulf region too as the population here looks for conveniences, on-the-go and healthier alternatives”, Ali said. RoohAfza has beneficial and nutritional qualities that work on the body particularly well in summer. It supplies essential electrolytes and corrects the function of the heart, liver and kidney. This is a thirst quencher and a great additive for mocktails and desserts. Besides cooling, it maintains and adjusts the body’s water level. Apart from mixing it with water and drinking, the popular concentrate can be mixed in milk, fresh lime or yoghurt, and is also a imperative ingredient in home-made ice cream, sorbet, slush, smoothies and sundaes. RoohAfza from Hamdard India has a substantial following and famous drink inducing strong sensorial affinity and nostalgia mainly amongst customers. The brand also intends to appeal to newer segments with focus on the local and global consumers residing in the Gulf. It is now available at all leading supermarkets and grocery stores across UAE in a pack size of 750 ml.

India and few other emerging markets shown monetary improvement other emerging markets were more challenging, especially in the first half of the year, but an improvement was seen in key markets like India, Argentina and Brazil in the second half. According to the Chief Executive, Coca Cola has accelerated its transformation into a total beverage company with a consumer-centric brand portfolio and an asset-light business model’.

ames Quincey - Coca-Cola’s Chief Executive has highlighted the fact that India, along with a few other emerging markets has shown ‘improvement’ in the October-December ’17 quarter. The Coca-Cola Company, which follows a January-December financial year, did not specify numbers for the India market. India is the sixth-largest market for the maker of Coke and Sprite aerated drinks and Minute Maid juices. Quincey said that

Similar to other markets it operates in globally, in India too Coca-Cola has been dodging risks by broad basing its portfolio to include low-sugar or healthier drinks including juices, juice-based beverages, tea and flavoured waters. Quincey said the non-alcoholic beverage industry was soft during 2017, as the emerging and developing markets slowed slightly from prior year. The company reported full year organic revenue growth of 3 per cent.

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Vol. 10, Issue 10 -March- 2018

JUICY THIRST

Juices are taking over Analyzing the growing

packaged juice industry of India

he increasing numbers of health-conscious consumers in India, especially in the country’s urban areas, who are more focused on functionality and nutrition in their beverages rather than just their thirst quenching properties and convenience, drove the positive sales growth seen in juice this year. The market size of beverage industry in India is estimated to be worth around Rs. 65,000 crore and this market is estimated to grow at CAGR of more than 20 per cent. The Indian packaged juice industry size is about Rs. 8,000 crore and it has been growing at more than 30 per cent per annum in last few years and will maintain that pace in future as well. “The per capita consumption of beverages in India is still very low compared to the US and other developed economies” In coming days, factors such as rising income of the people in emerging markets, demographic shift in terms of more young people in the economy, changes in lifestyle and rising health consciousness will give a further boost to this trend. Juice is expected to increase in both off-trade volume values at a CAGR of 17 per cent at constant 2017 prices over the forecast period, with sales set to rise to INR272.5 billion in value and 4.1 billion litres in volume by 2021. Why the shift Lately, there has been a fizzle in the demand for the aerated drinks as two large cola giants Pepsi and Coca-Cola saw a decline in numbers and revenue. Globally too, cola sales have been seeing a steep decline over the last few years. With urbanisation and exposure to the West, Indian consumers

today are increasingly becoming conscious of their lifestyle including food and beverage choices, in some cases prompting a shift from colas to healthier options such as juices, milk-based flavoured beverages, etc. Cold pressed juices too are slowly finding favour amongst consumers — while Keventers has expanded into Mumbai recently, Juice Up launched its first kiosk in Noida in 2016. “Even the likes of McDonald’s are now offering customers the choice to opt for milkbased beverages (chocolate milk, smoothies or shakes) with their meals” Buying behaviour is changing. India is the diabetic capital of the world and there is much more awareness now leading to growth of fruit-based drinks in the last one year. In the medium-to long-term, fruit-based and milk-based beverages will take away a lot of market share from colas with ready-to-drink beverages in the dairy segment also coming to the fore. The market share of fruit juices, nectars and juice drinks stands at around 25. per cent which is still less than that of carbonated drinks (approx. 47.9 per cent), In such a scenario, how are packaged fruit juices and health drinks preparing to jostle for space on the consumer’s refrigerator shelf? Juicy facts Increasing awareness on the health effects of carbonated drinks has certainly made some consumers rethink about the consumption of colas. While carbonates grew in India at 12.8 per cent CAGR from 2010-16, the juice segment grew at 27.3 per cent CAGR over the same period. The juice category is witnessing high growth, which is characteristic of a higher per capita packaged beverage market as consumers start looking for a multitude of packaged beverage choices. Fruit juices are slowly becoming an indispensable part of breakfast, social gatherings, etc., encouraging companies to package them in convenient, easy to carry/easy consumption packs. Some have even launched variants catering to every consumer segment in the market. But still the all-India penetration of juices stands at around 3 per cent which is very low, so many juice companies are currently strategizing to increase penetration and make products more relevant. One can’t ignore that the major chunk of consumption still comes from the colas, but developments like the Tamil Nadu traders refusing to sell products by Pepsi and Coca-Cola don’t help the cause. As a result, there is proliferation of international and home-grown brands like Del Monte and Paper Boat. Also company’s like Dabur have brought different

products positioned for different segments — Real Fruit Juice for mothers and children; Real Activ Juice for adults; for the 40+ age group it launched Amla and Jamun juice under its Real Wellnezz range; and for teens, who love the fun of fizz but are also conscious about their health, it launched Real Volo. The current scenario has led the juice category to grow at 15 per cent y-o-y and 2017 is going to witness forward to an overall growth of over 20 per cent for fruit drinks over last year. Companies are doing their level best to grab market share away from colas, fizzy drinks still remain popular. Parle Agro too has launched a fizzy version of Frooti — the first brand extension for the mango drinks in 32 years. One of the major reasons for this is that a majority of the juice market is urbanized. The culture of drinking juices and having energy drinks has limited penetration in rural areas. Expansion in the category has to match with corresponding growth in support infrastructure, with refrigeration equipment that can operate without electricity, especially in rural areas. Key players have been regularly investing to bring in growth by increasing the number of stores stocking products. Thus, the challenge currently for companies is to increase availability and affordability of packaged juices. Juice-based drinks are growing in small towns and rural markets as well but the breakfast table phenomenon poses another challenge. Unlike the West where juices form an important part of one’s breakfast, Indians are habituated to tea/coffee and milk. As a result, brands have to critically see how to position juices. Battle lines redrawn PepsiCo’s Tropicana, a billion-dollar brand globally, has lost about 5 per cent share of India’s Rs 2,000-crore packaged juices market— both by value and volume — between April 2016 and January 2017 compared with the corresponding period a year-ago, as per data research. Though PepsiCo defers with it as Tropicana has been one of the fastest growing beverage brands and 70 per cent of its growth was on the back of locally relevant innovations and variants such as Mosambi and Alphonso as examples of drinks based on Indian fruits. “PepsiCo brought a new twist planned for Tropicana juice: live microorganisms” PepsiCo has expanded the Tropicana franchise with functional juices under Tropicana Essentials; It is launching the Tropicana Essentials Probiotics this year to expand the brand into a subcategory of the juice aisle that has seen rapid growth—so-called “functional juices.” Those beverages are selling strongly as consumers look for more nutritional benefits in the foods and drinks they consume. Orange juice is a beverage category that has fallen out of favor with consumers, a decline that in some ways mirrors the troubles that the soda industry is facing. PepsiCo is highly active in both beverage segments, with market-leading positions with the namesake Pepsi and Mountain Dew brands. Tropicana,

meanwhile, is the market leader for juice— with 7.4 per cent of the market according to research firm. While it outsells Coca-Cola’s Minute Maid both are losing market share in recent years as upstart brands perform more strongly. The challenge for PepsiCo: giving consumers a reason to want to buy juice again, ideally by entering into adjacent categories where demand is stronger. Tropicana Essentials Probiotics is part of a bigger push at PepsiCo to use innovation to fuel growth. In the second quarter, new products comprised about $5 billion, or 9 per cent, of the company’s sales. “Tropicana must confront is the perception that orange juice has too much sugar—in particular, the misconception that there’s added sugar”. The brand’s mainstay product, Tropicana Pure Premium, is 100per cent orange juice without any added sugar, preservatives, or artificial flavors. Tropicana Essentials Probiotics also makes that promise. Tropicana was founded in Bradenton, Florida, USA, in 1947. It is now enjoyed almost everywhere in the world. Carefully nurtured for over 50 years, Tropicana has matured into one of the most respected beverage brands. Tropicana is the #1 brand in packaged 100 per cent Juice* in the world in 2011 in offtrade volume. It is today available in 63 countries. Since 1998, Tropicana has been owned by PepsiCo, Inc. Tropicana Premium Gold was re-launched as Tropicana 100 per cent in 2008. Tropicana continues to select the best fruit to manufacture high-quality juices and original products, pioneer innovative processes and explore new markets for its products. It is committed to fostering healthy lifestyles by ensuring that its products are naturally nutritious and provide the daily benefits that one needs. In India, Tropicana comes in two categories: 100 per cent Juices (sold as Tropicana 100 per cent ) and Juice Beverages (sold as Tropicana). Dabur’s Real has gained about 2.5 per cent over other juice brands in India and has even surpassed PepsiCo’s Tropicana. “With Rs 1,000-crore in retail sales, Real Juice is the single largest brand for Dabur in the country” The brand has introduced juices based on local fruits such as Mosambi, jamun and amla, and Dabur’s distribution muscle is also seeking to establish the low-priced mango fruit drink, Ju.C. Dabur’s new sub-brand Ju.C will compete in the bigger fruit drinks market that comprises of Parle Agro’s Frooti, PepsiCo’s Slice and Coca-Cola’s Maaza. This category is separate from juices and nectars where Tropicana and Real compete This gain in Dabur’s brand market share is due to increasing health awareness. Timepressed lifestyles of urban Indians have led to the demand for convenient breakfast and snacking solutions such as packaged fruit juices. Dabur have brought different products positioned for different segments — Real Fruit Juice for mothers and children; Real Activ Juice for adults; for the 40+ age group it launched Amla and Jamun juice under its Real Wellnezz range; and for teens, who love the fun of fizz but are also conscious about their health, it launched Real Volo last year. “Dabur India is increasing its rural focus which is only 3 percent overall” The company already commands about 60 per cent market share of the packaged fruit juice market in India with its Real and Real Activ brands. Real Juices have been growing at strong double digits over the past five years, much ahead of the industry average. However as newer brands jostle for space on urban shop shelves, the company is turning to rural markets. It has been enhancing its rural distribution footprint under ‘Project

Vol. 10, Issue 10 -March- 2018

Double’, which was initiated few years ago. They have already increased our rural footprint from 14,000 villages about three years back to 45,000 villages in 201415. Dabur in the next phase of the project expanded the rural footprint to 60,000 high potential villages. “Rural demand for packaged juice is on the rise, urban markets still account for nearly 80 per cent of all packaged juice sales across the industry” Réal is a nearly 20-yearold brand and has a dominant share of the branded fruit juice market in India. Réal is the preferred choice of consumers when it comes to packaged fruit juices in India. A validation of this success is that Réal has been awarded ‘India’s Most Trusted Brand’ status for 8 years in a row. Today, Réal has the largest range of 14 exciting fruit variants under Réal Fruit Power and another 11 offerings under Réal Activ helping it cater to an entire gamut of consumer segments and need states. ITC is a late entrant in the packaged juice segment, which is largely dominated by PepsiCo’s Tropicana and Real from homegrown FMCG major Dabur. It forayed into the premium packaged fruit drinks market in 2015 with the acquisition of the B Natural brand. ITC is expanding its juice portfolio with an aim to garner around 20 per cent market share in five years in the packaged fruit juice segment, currently estimated to be around Rs 2,500-crore. The cigarette conglumerate is looking to capture India’s juice market through its brand B Natural by focusing on regional flavours and offering premium versions of juices available in the market. It has added around 60,000 retailers in its distribution network for B Natural. The company, which acquired B Natural in 2014 from South Indian firm Balan Natural Food, is looking to launch at least two variants by October this year, including Bel (Wood Apple) and Falsa (Grewia asiatica berry). ITC is present in FMCG segment at a niche level

JUICY THIRST

with all their premium products and in every category they are in premium segments. They need to start targeting the lower mid-segment.” ITC is looking to ramp up B Natural’s production while it also expands its distribution network. Penetration of packaged juice is much lower in the south as fresh fruit consumption is a lot higher in south India than in (north) India. So ITC is planning this market as a lot more growth (in distribution) is in the south region right now. Maker of Paper Boat drinks, Hector Beverages more than doubled its sales during year to March 2016 but its losses increased almost four times at Rs 84 crore due to investments in manufacturing and higher marketing spends. The seven-year-old company posted sales of Rs 72 crore for 201516, up from Rs 32 crore in the previous year. Its net loss in 2014-15 was Rs 22.6 crore. While last year, Hector Beverages spent about Rs 30 crore to set up its second manufacturing unit in Mysore to cater to southern and western markets. Hector Beverages also sell energy drink Tzinga, Paper Boat brand of packaged juices and traditional drinks contribute to about 80 per cent of its overall sales. Paperboat created a new category of branded ethnic-flavoured drinks when it burst on the scene, and its packaging too set it apart from the crowd and its innovative products and packaging have been a force of ‘creative disruption. Paper Boat’s traditional Indian flavours and its differentiated packaging give sit a unique look at retail stores The company has clearly gone after market share and taken a penetrative approach. Whichever geography they choose, they are going after it very aggressively. It is clear that they want to be a deeply penetrated mainstream product. Paper Boat’s success has been customer-centricity: it sources the best quality raw materials from across the country. Another factor, which has worked well for the brand, is its communication strategy, which had distinctive tone of nostalgia and innocence. Mean- while, it is also keeping a close tab on costs. It replaced tetra packs with a flexi pouch that uses just 8gm of plastic as against 25gm for a pet bottle, making it cheaper by at least 50 per cent. Even transportation costs go down with this packaging. Hector Beverages is a niche player in this segment with its focus on traditional Indian drinks. Its initial success is now attracting bigger players into the segment. Paper Boat’s competition includes ITC’s B Natural and Dabur’s Hajmola Yoodley. Dabur is multiple times bigger than Paper Boat. With them coming out with a similar product as Hajmola Yoodley, speaks volumes about Paper Boat. There is tough competition

even from Parle or Pepsi, which are large players. They are competing for the same consumer wallet share directly or indirectly, that the strength of the company. Hector Beverages has partnered Japanese food giant Indo Nissin Foods to strengthen its distribution and brand presence in tier II cities and rural markets. Backed by multiple investors such as Sequoia Capital and China’s Hillhouse Capital, the company is now focused on reducing its dependence on summer by launching packaged Indian snacks to make sales round the year. Till now, it has raised about Rs 250 crore in funding. Manpasand Beverages started off with its flagship brand, Mango Sip. Based on mango, India’s favourite fruit, the brand is strategically focused on semi-urban and rural markets. Leveraging distributor relationships has been one of their marketing focuses. The company offers a scheme to distributors and retailers to purchase cooling accessories such as fridges and iceboxes at discounted prices, which create a value proposition for the retailers. These accessories prominently display the company’s brands and provide a primary marketing and point of sales branding platform. Manpasand Beverages has the unique distinction of being the sole listed company in Indian beverages sector. The company primarily focuses on mango-based drinks. Mango Sip, launched in 1997, is company’s flagship product, contributing 80 per cent to revenues in FY16 (97 per cent in FY14). To diversify the portfolio, the company launched Fruits Up and Manpasand ORS as well as commenced the marketing of Pure Sip bottled water in July 2014. “Mango Sip was first made available only in the rural and semi-rural areas as about 80 per cent of population in India lives in rural areas” They noticed a gap in fruit consumption in these areas and sensed an opportunity as there are very minimal differences when it comes to consumption behaviors in terms of rural versus urban. When they started in 1997, the major players (mostly MNCs) were present only in the big cities of India, leaving a gap for tier II and III cities as well as rural and semi-rural areas. This created a looped opportunity and they experimented with products in these areas. Also, Mango Sip was made available in Indian Railways, which is the lifeline of India in terms of transportation. These moves paid off in terms of establishing Mango Sip (flagship brand) and made Manpasand a credible name in the Indian beverage market (which mostly consists of bottled water, carbonated /aerated drinks, fruit juices, and others). “Manpasand’s differentiator vis-à-vis global MNCs, is lower price point, wider range of packs and a strong rural focus” Under Fruits Up, Manpasand offers premium fruit juices and carbonated drinks in various flavours. Through Manpasand ORS, the company provides fruit drinks (apple and orange flavours) with energy replenishing qualities across north-east India. Fruits Up is currently available in mango, guava, litchi, orange and mixed fruit flavours. Without any synthetic base, Fruits Up is made up of natural ingredients and contains more fruits content – 5-10 per cent in the carbonated form and 16-17 per cent in the premium juice range. Earlier this year, the company developed another healthy product called Coco Sip – 100 per cent natural packaged tender coconut

water – targeting the huge untapped coconut drink segment as most of the coconut drink market in India is catered to by the unorganised players and non-branded products. The company plans to aggressively expand our capacities during FY16–18. Manpasand Beverages have been forming key alliances with various domestic and global companies to further this ambition. The company has tied up with leading food & restaurant chains including Havmor, Barista, Baskin & Robbins, Metro Cash & Carry, etc., along with 2,000 modern retail format stores and is in advance talks for tie ups with many multinational food chains and retailers such as Reliance. “Manpasand will continue to increase our significant presence in the rural and semi-rural markets, and have also started aggressively tapping into the urban markets where their presence was minimal until recently.” Conclusion According to “India Juice Market Overview”, the juice market in India registered a CAGR of 15-20 per cent in the last six years. India is known to be a fruit basket of the world and has been considered as the second largest producer of fruits after China. The fruit and vegetable processing industry in the country is highly decentralized, having wide capacities. The wastage of fresh fruit, produce has been estimated to be of a very high order in India, i.e. around 30-35per cent of the total production during harvest, storage, grading, transport, packaging and distribution because of the challenges involved in the industry. Prime Minister of India Narendra Modi

recently proposed the big players like Coca-Cola and Pepsi to add 2% of fruit content in the aerated drinks, which will thereby help the farmers to cultivate more in fruits and can generate profit. These kinds of initiatives are also expected to promote the inclusion of real fruits in the packaged juices available in the Indian market. The segmentation in the Indian juice market is done on the basis of fruit content like fruit juices, fruit drinks and nectar drinks. Fruit drinks dominate the market with more than half of the market share. Street vendors find this product feasible as the product comes cheap and viable. The consumers of India are price sensitive and go for the cheaper options without realizing the side effects. However, with the increasing awareness about the deteriorating health due to such drinks, the market is expected to decline in the coming five years. Top players are working rigorously on fruit drinks that contain 100% juice content. The health conscious people are also shifting from the fruit drinks to the fruit juice segment as it is healthier and does not contain added preservatives or artificial flavours.

Vol. 10, Issue 10 -March- 2018

RETAIL NEWS

Now enjoy fruit juice variants of Sprite and Limca

oca-Cola is looking to widen their horizons in India. The company plans to introduce new variants for Sprite — best-selling carbonated beverage brand, and Limca—its third largest aerated drink brand.

The move comes just months after the American beverage maker launched a variant of Thums Up — its largest-selling cola brand in November. The extension, Thumps Up Charged is a stronger version of the 40-year old cola brand. Coca-Cola India Pvt. Ltd, the Indian unit of American beverage maker Coca-Cola Co. has got similar plans and will soon launch fruit juice versions of Sprite and Limca brands in the first half of 2018. T. Krishnakumar, President (India and Southwest Asia) said “We are working on few more variants of brand Thums Up that we’ll launch during the first half of this year.” The company will also launch Thumps Up in countries like Bangladesh, Sri Lanka, Bhutan and Nepal by March-end. Thums Up is the first carbonated beverage brand to be taken overseas. Coca-Cola acquired Thums Up and Limca, along with a few more brands, from Ramesh Chauhan

in 1993.Krishnakumar said Coca-Cola plans to launch three more variants of Fanta during 2018. It already has two in the Indian market.“Quantum of fruit content will vary from 7 to 25 per cent depending on the product.” Coca-Cola announced plans to invest more than Rs 5,000 crore in next five years in procuring processed fruit pulp and fruit concentrate for its portfolio of products.As part of its portfolio expansion plan, Krishnakumar said, the local entity of the American beverage company will invest in three categories — juices, sparkling or aerated beverages and hydration water over the next few quarters. “We’ll also strengthen our dairy and tea offerings in India over time. Coca-Cola India has been witnessing slow growth in the last few years, posted revenue growth at double digit rate during the quarter ended 31 December 2017 with volume growth at a single digit rate. Rival player PepsiCo also started adding fruit content in some of its aerated drinks since 2015. In 2016, Dabur India launched juice-based aerated drink Real VOLO. Even Parle Agro has been selling Appy Fizz since 2005, launched Frooti Fizz in 2017.

Ananda Dairy expands with 105 stores in Delhi/NCR

eadquartered in Uttar Pradesh, Ananda Dairy provides several dairy products like paneer, ghee, lassi, etc. Ananda Dairy announced opening of 105 stores, owned and operated by itself, in Delhi and the NCR region, to expand its footprint in North India.

stores across Northern India.” They are targeting 30 per cent growth from its company outlets and achieve a turnover of Rs 1,500 crore by the end of this fiscal. The company will offer fresh and wide range of dairy products, including confectionery and bakery items.

The company has made an investment of Rs 5 crore for the launch of 105 COCO (company-owned and company-operated) stores in a single-day.

Also, well-trained professionals will guide consumers to the right products based on their unique dietary requirements. Set up in 1989 in Bulandshahr in Uttar Pradesh, Ananda has steadily grown its production capacity and today offers over 50 products in its portfolio.

Ananda Group Chairman R S Dixit said “By the end of 2018, we aim to expand to 500 Ananda

PepsiCo posts strong growth in third quarter: Nooyi billion, according to its statement issued. Globally, PepsiCo reported revenue of $19.53 billion for the three months ended 31 December 2017, compared to $19.52 billion in the corresponding year-ago period. On a reported basis, PepsiCo posted a quarterly loss of $0.50 per share during the period under review.

nacks and beverages major PepsiCo said that the company has registered a strong mid-single digit growth in organic revenues in India in the fourth quarter ended December 2017. India and Mexico are the only two markets that grew at this rate during the quarter. PepsiCo CEO and Chairman Indra Nooyi, however, hinted at a better outlook. “Post GST (Goods and Services Tax), Indian market is coming back,” Nooyi told investors on a call after the American food and beverages maker announced its fourth quarter results. The Indian government implemented GST, the country’s biggest tax reform, on 1 July 2017. The mid-single digit growth rate for PepsiCo India may not reflect the real state of business for the company in the country. The growth number is in comparison with October-December 2016 quarter when India went through demonetisation which, as Nooyi told investors on PepsiCo’s earnings call on 15 February 2017, had significant impact on its business in the fourth quarter.

PepsiCo has been under pressure in India for the past few years with falling sales, rising competition and changing consumer preferences. Its local entity had, for the fiscal year ended 31 March 2017, reported revenue at Rs 6,540 crore, according to its filings with Registrar of Companies (RoC). It is less than Rs 6,994.8 crore reported for the year ended 31 March 2013. Last quarter, PepsiCo divested parts of its bottling operations in some states in India to its largest bottling partner Varun Beverages Ltd, a unit of Ravi Kant Jaipuria owned RJ Corp. Last month, Varun Beverages got the distribution rights for PepsiCo India’s non-carbonated drinks brands Tropicana, Lipton tea, Gatorade and Quaker Oats. Varun Beverages has acquired bottling units and franchisee rights in five more Indian states. At present, Varun Beverages has the franchise for PepsiCo products in 20 Indian states and two Union territories.

While PepsiCo does not report India numbers separately, in its results statement on 15 February 2017, the company noted a 1.5 per cent decline in revenue in Asia, Middle East and North Africa (AMENA) region, which includes India market, for quarter ended 31 December 2016. For October-December 2017 quarter, PepsiCo’s revenue for AMENA stood flat at $1.89

Manufacturer of : Ice Candy Packaging & Coding Machines EXTERNAL TRAINING PROGRAMME SCHEDULE FROM April 2018 to October 2018

Month

April-18

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Duration 09.04.2018 to 13.04.2018 16.04.2018 to 21.04.2018 07.05.2018 to 12.05.2018 14.05.2018 to 19.05.2018 28.05.2018 to 30.05.2018 04.06.2018 to 06.06.2018 11.06.2018 to 13.06.2018 18.06.2018 to 22.06.2018 02.07.2018 to 07.07.2018 09.07.2018 to 14.07.2018 16.07.2018 to 19.07.2018 23.07.2018 to 25.07.2018 01.08.2018 to 04.08.2018 06.08.2018 to 11.08.2018 17.09.2018 to 19.09.2018 24.09.2018 to 29.09.2018 04.10.2018 to 06.10.2018 22.10.2018 to 27.10.2018

Training Name Advances in Fat Rich Dairy Products(Butter, Ghee, Margarine, AMF/Butter Oil)

Co-operative Private Government, Dairies NGO / & Individual Trust/Clusters (small etc businessman) Fee* (INR) Plus 18% GST Extra 12000/-

18000/-

Dairy Technology for non Dairy Technologist (Guj)

12000/-

18000/-

Dairy Technology for non Dairy Technologist (Eng)

12000/-

18000/-

Laboratory practices in Dairy and Food Plant

12000/-

18000/-

Detection of Adulterants in Milk

8000/-

10000/-

Dairy Secretary Training (Guj)

7500/-

10000/-

6000/-

8000/-

12000/-

18000/-

12000/-

18000/-

15000/-

21000/-

Sensory Evaluation of Milk and Milk Products Technology of Fermented and Probiotic Dairy products

9000/-

12000/-

7500/-

10000/-

Dairy Supervisor Training (Guj) New Developments in Energy Management of Dairy and Food Operations

9000/-

12000/-

15000/-

21000/-

8000/-

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Laboratory Practices in Dairy and Food Plant Management of Bulk Milk Cooling System (Guj)

12000/6000/-

18000/8000/-

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12000/-

18000/-

*Fee includes food, accommodation (Double Occupancy A/C) and reading materials. applicable.

GST extra as

July-18

August-18

September-18 October-18

Management of Bulk Milk Cooling System (Guj) Management of Bulk Milk Cooling System and Clean Milk Production (Hindi) Dairy Technology for non Dairy Technologist (Eng) Technological and Engineering Aspects of Cheese Making

Detection of Adulterants in Milk (Eng)

Fee* to be paid by DD in favour of VIDYA DAIRY payable at Anand, is inclusive of food & accommodation (double occupancy, A/C rooms). Due to unforeseen circumstances, programme dates may change / get cancelled in some cases. Prior confirmation is therefore, a must before participating in any program. Contact: Training Co-ordinator 09377211866 / 09377925124, 02692-221504, 02692-262501 Email: www.vidyadairy.in

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Vol. 10, Issue 10 -March- 2018

FOOD SAFETY NEWS

Eateries have to appoint food No proposal to safety supervisors to get license ban junk food advt. on TV: Govt

o ensure safe and healthy food, the Food Safety and Standards Authority of India (FSSAI) has drafted new regulations for culinary businesses, making it mandatory for such establishments to employ at least one food safety inspector as a pre-requisite for obtaining licences. The regulator’s plan is to make it mandatory for all food businesses with 25 or more people (such as caterers, manufacturers, companies transporting food items and retail outlets) to have at least one FSSAI-trained safety supervisor. Along with

eateries E-commerce operators are also required to fulfill the regulations to ensure hygiene standards. Such entities have to apply for licences under a separate ‘e-commerce’ category under the Food Safety and Standards (Licensing and Registration of Food Business) Amendment Regulations-2018.

tarily restrict food and beverage advertisements concerning children. On whether the government proposes to impose a ban on telecast of junk food and cold/soft drinks advertisements on television, Information and Broadcasting Minister Smriti Irani said in a written reply that “presently there is no such proposal”.

“These draft regulations are in the process of being notified… meanwhile, keeping in mind the public health interest and to ensure the food safety of food business operations, it has been decided to operationalise these regulations with immediate effect,” the FSSAI order read.

Nine major food business operators have decided not to advertise products with high fat, salt or sugar on children’s channels. Irani said “The expert group in its report made a recommendation regarding ban on food with high fat, sugar and salt advertising on children’s channels or during children shows. On this recommendation, remarks of the FSSAI were that the food businesses could be asked to voluntarily desist from advertising high fat, sugar and salt foods on children’s channels.” While asking for supplementary, some MPs raised concerns about junk food affecting the health of children. The Food Safety and Standards Authority of India (FSSAI) had constituted an expert group to address the issue of high fat, sugar and salt foods.

“We have introduced a slew of changes, and are in the process of introducing further changes to ensure that those associated with food businesses meet all regulatory requirements. Our consumers need safe and hygienic food items,” said FSSAI CEO Pawan Agarwal.“These regulations will be enforced once they are notified in the Gazette of India,” he added.

ith TV being a popular medium to propagate information and gain attention, people minds get easily influenced. Even children are vulnerable and get carried away thinking that what’s shown on television is true. The government said there is no proposal at present to ban advertisements of junk food on television, while nine major food business operators have decided not to advertise products with high fat on children’s channels. Minister of State for Information and Broadcasting Rajyavardhan Singh Rathore told the Lok Sabha during Question Hour that bodies like the Food and Beverage Alliance of India (FBIA) have already decided to volun-

States must use National Health Mission funds for food safety

nion Minister of health and family welfare, JP Nadda in a meeting with state health ministers and the Food Safety and Standards Authority of India (FSSAI) stated that with the aim to build up food safety systems in each state such as laboratories and enforcement infrastructure, states should use funds from National Health Mission (NHM). Nadda said “Central Government is providing support to the tune of Rs 482 crore for the states. As many as 45 state labs are

to be strengthened. I request the states to come forward with the proposals or give us the plan for strengthening the laboratories. Finance will not be a constraint and each state should have at least one government food laboratory of high quality.” Food borne diseases impose a huge economic burden on India amounting to as much as 0.5 per cent of India’s GDP or about $28 billion. All state health ministers, present during the meeting

agreed to the use of appropriate curriculum content on food and nutrition in schools to promote healthy eating habits and build awareness. States will also launch sustained campaigns in cities, districts and states under the banner of Safe and Nutritious Food (SNF) to develop city, district and state-wide ecosystems and declare them smart food state, city or district.

Vol. 10, Issue 10 -March- 2018

SAFE HANDS ?

Is the food safety and standard authority (FSSAI) in a mess? The Food Safety Standards Authority of India (FSSAI) has been slammed by the Comptroller and Auditor General (CAG) of India for the lack of robust food-quality standards and ill-equipped laboratories, among other things and the country’s top food regulator has acknowledged some of the auditor’s findings, but not without defence. Beverages and Food processing provides detailed view and counterview of the issue

And to say all these loops are found even when the Central government is making an investment of Rs 480 crore to strengthen state food laboratories and referral laboratories. It is also investing in training of staff and handholding National Accreditation Board for Testing and Calibration Laboratories accreditation.

stablished in 2011 under the Food Safety and Standard Act, 2006, the FSSAI is part of India’s ministry of health and family welfare. It is responsible for laying down scientific standards for food items and regulating their manufacturing, storage, distribution, sale, and import. However, the regulatory body has been in the news for lack of competent labs to conduct food tests. For instance, in 2015, FSSAI was engaged in a very public battle with Swiss multi-national, Nestle, after it alleged that samples of Maggi noodles contained higher-than-permissible content of MSG and lead. The crisis put FSSAI in the spotlight and even led industry watchers to question the regulatory body’s functioning. This episode led to the health ministry calling for a complete revamp of the regulatory body. Later that year, the FSSAI’s then head Yudhvir Singh Malik was replaced with the current chief Pawan Agarwal. Since then, Agarwal has been making the right noises, urging the industry as well as policymakers to draft new rules, step up initiatives to revamp its laboratories, and train more food technicians. But going by the CAG’s report, FSSAI still has a lot of work to do; The Food Safety and Standards Authority of India (FSSAI) is accountable for approving that the food we buy and eat is safe for us, but going by the news that is circulating around the food Industry about its catastrophe regarding food safety, has the regulator failed consumers and public. According to CAG’s observations, the Food Safety and Standards Authority of India (FSSAI) are guilty of various lapses in enforcing food safety across the country. It claimed that food articles that were declared unsafe by it remained up for sale in

markets due to lack of adequate monitoring. Moreover, most of the laboratories across states do not have proper accreditation. So, the quality of their testing cannot be ensured. The CAG found that 65 out of the 75 State Food Labs did not have the National Accreditation Board for Testing and Calibration Laboratories accreditation according to the report. FSSAI and the State authorities had been sending samples to these labs despite this major glitch in documents. According to the auditor, FSSAI has failed to ensure that the customs authorities are following up with the ‘Non-Conformance Reports’ which are issued by the regulators. Further the regulator had failed to make sure that unsafe food is not entering India. The CAG also reported that glitch in FSSAI work included systemic inefficiencies, delays and deficiencies in the framing of various regulations and standards, amendments to regulations in violation of the Act and specific direction of Supreme Court. This came up in the audit which was conducted by CAG on food safety in 10 chosen states. There was a test check conducted on three Central and five State licensing authorities stated that the report and 3119 out of 5915 cases licenses were issued to the Food Business Operators due to incomplete documentation. CAG also reported that there was immense shortage of qualified manpower and functional food testing equipment in State laboratories and referral laboratories resulted in deficient testing of samples. The report further said that the FSSAI and State authorities did not document policies and procedures on risk-based inspections. Plus it added that the FSSAI did not have any sort of database on food businesses.

Apart from the low grade laboratories fact, when the CAG did a test audit of 50 proprietary food products approved for sale to consumers between 2012 and 2014, it found that even the diluted regulations were not followed. In many cases, the authority did not send the product for scientific assessment even after giving it the temporary no-objection certificate. By April 2015, a note written by the authority’s chief executive in May 2015 shows, it had issued such certificates to over a thousand products but sent only 200 of them for testing. In the case of at least four products, the authority continued to allow sale for up to 47 months after the scientists rejected them as unsafe. For some products, the authority did not cancel the no-objection certificates in time. Sometimes when it did cancel the certificate, it allowed the sales licence for the product to stand.

The authority enabled this by diluting the 2011 guidelines to give temporary one-year no objection certificates to products even before its scientists had examined them. The dilution goes against the provisions of the Food Safety and Standards Act, 2006, mandating that only scientific panels can decide if a food product or food type is safe to consume. The bureaucrats heading the authority can issue licences for food business operators to sell a product only after the scientists have approved it as safe. CAG highlighted the case of a company called Chemical International that had received a no-objection certificate to sell a mushroom-based nutraceutical in August 2012. A month later, the authority’s scientists asked for the product to be banned as the company had not submitted clinical data about its claimed health benefits. But the authority did not cancel the licence for the product.

The actual guideline of FSSAI requires food firms to provide scientific evidence that their product is safe. Only after the authority’s scientists were satisfied was the product to be allowed in the market.

Another astonishing case was in December 2013, when FSSAI allowed permission to a company called Pushpam Foods and Beverages to sell an energy drink called Restless Ginseng. Within a year, its scientists gave senior officials the information that Restless Ginseng’s main ingredients: caffeine and ginseng, made a dangerous combination that could increase heart rate and blood pressure. And this information was well-recognised in the rest of the world:

Starting from 2012, the authority has diluted its regulations, bypassed established protocols and ignored warning from its scientists to allow the sale of more than 800 processed foods with new formulations without assessing their safety. Some of these are still in the market.

Unfortunately, the authority took seven good months to respond. It was only in June 2015 that it withdrew the no-objection certificate given to the company to sell the product. For a year and a half, the company was able to manufacture and sell a harmful product. Despite the authority’s action, Pushpam Foods

Vol. 10, Issue 10 -March- 2018

continues to promote the drink on its website. The food safety authority has evidently failed to check whether the product has been withdrawn from the market. As the Comptroller and Auditor General of India (CAG) pointed out in a recent report, had the authority followed its own guidelines framed in 2011, products such as Restless Ginseng would not have been put in the market in the first place. Another interesting lapse by FSSAI came into light was when, in August 2013, the safety authority gave a company called Surya Herbal a licence to sell Sunova Spirulina tablet. But since the company did not provide scientific evidence of the tablet’s safety, the scientific panel cancelled the no objection certificate in August 2014. Yet, the company continued to carry the licence to sell the tablet till December 2017. It still promotes Spirulina tablets on its website, though it could not be ascertained if this is the same product that has been banned. The authority does not require companies to disclose such details on their websites. Restless Ginseng is probably not the only potentially harmful energy drink that the authority has allowed. The CAG said it was likely other companies besides Pushpam continue to sell drinks with the same dangerous concoction of ginseng and caffeine. The authority has also granted the approvals arbitrarily. In January 2013, it allowed the Indian biotech company Biocon to market its nutraceutical tablet S-Adenosyl Methionine but denied permission to Sun Pharmaceutical Industries to sell the same product in August that year. Although Biocon’s product approval was withdrawn about a year later, the company continues to hold the licence to sell the nutraceutical till May 2020. This arbitrary clearance system was struck down when challenged before Bombay High Court and its decision was validated by the Supreme Court in 2015. With clearance regime banned by the courts, sale of proprietary food products should have stopped until a new system was put in place. But, the CAG found, a month after the judgment of the Bombay High Court, the food safety authority issued ‘blanket instructions’ to its licensing authorities to renew or continue all existing licences issued on the basis of the no-objection certificates it had already issued. Consequently, FSSAI permitted the indefinite manufacture, distribution, sale or import of possibly unsafe foods, the CAG said. The regulator did not take any action after the final orders of the Supreme Court to withdraw these blanket instructions. Despite this, the food authority, and Union health and family welfare ministry which oversees it, have been dismissive of the CAG’s report. The main

SAFE HANDS ?

thrust of their defence is that it’s old news ¬and a new set of regulations has been put in place starting 2016. Counterview Well it is important to point out that food safety is an important issue to sustain a nation’s growth in the long run. Unsafe food affects the overall competitiveness of a nation and to be specific the food industry. Food safety and hygiene are such burgeoning issues in a country like India, where not only the food sector but the food trade gets affected in a negative way. Western countries with their strong safety policies usually ban Indian food just on the basis of safety resulting in heavy losses for the exporters and the agro processing industry. Moreover, most of the burden is borne by the population at bottom of the pyramid as they are usually more price- than quality-sensitive. Therefore, a strong food regulator becomes an absolute necessity for a nation’s sustained and balanced development. Keeping these factors in mind, FSSAI was established in 2006 under the Food Safety and Standards Act. It was an important step which combined all the food safety legislation spread across different ministries under one head and marked a paradigm shift in food policy from a narrow focus on adulteration to a more holistic approach on the provision of safe and wholesome food. This implied a shift from

the mere testing of the final food product for adulteration to implementing mechanisms that prevent the communication of pathogens across the supply chain. The latter approach ensured safety from “farm to plate”. However, can we blame the authority for all blemishes; many believe that the CAG audit has taken a rather stringent view on the matter. Even though it has been a decade since enactment of the food law as the report points out, implementation has always been a challenge for FSSAI due to lack of resources. After the legislation was passed, resources from earlier regime were reshaped to fit in with the new policy. Moreover, there were legacy issues. Each state has its own unique system of food regulation which failed to evolve with the new policy. Insufficient manpower and funding impeded the process further. FSSAI is definitely taking active steps countering these issues. It is a big thing to micro manages safety standards on a national scale in a country like India, while the food regulator is aiming to enforce a system of self-regulation. Actually FSSAI has finalised third-party auditors of food businesses and mandated the units to have at least one trained food safety expert. Another proposed mechanism is for food companies to voluntarily participate in the Responsible Food Company Index that will measure and monitor the workings of

Specifically, this is how the FSSAI has countered some of the CAG’s key observations • Food testing and state of labs: In its report, the CAG was critical of the FSSAI for poor state of its testing facilities, citing a lack of relevant equipment. The FSSAI has been working to “ensure that its state food laboratories and referral laboratories are fully equipped and functional,” it said in its release. In 2016, the regulatory body was granted Rs480 crore by the central government to strengthen these facilities, it added. Several labs are also in the process of being accredited by the National Accreditation Board for Testing and Calibration Laboratories (NABL), another point noted by the CAG. • Standards for regulating food items: The CAG report stated that FSSAI had failed to set standards for regulating certain food products, allowing the sale of items unfit for consumption. Replying to CAG’s claims, the food regulator said, “The recent years have witnessed rapid progress in developing new regulations and food standards. FSSAI has notified nearly 9,000 provisions for use of around 400 food additives in various food categories.” These, it said, included regulations on imports, health supplements and nutraceuticals, and approval for non-specified food and food ingredients. • Compliance with food regulations: The CAG noted that the FSSAI had failed to constantly monitor and inspect food operators across states. In response, the regulator emphasised that “several state food authorities have conducted surveys of food business activities under their jurisdiction and some states have not been able to do so due to acute shortage of manpower. • Appointing well-trained staff: Allaying the CAG’s staff-shortage concerns, the regulator said it had “finalised the recruitment regulations and asked for a creation of about 600 new posts to strengthen the FSSAI set-up across the country.” The FSSAI is training and building the capacity of lab staff and adding to its small pool of food analysts through a series of examinations.

food businesses beyond statutory compliance. Successful implementation of these processes will ensure an efficient market-based mechanism of self-assessment in food safety. As far as food laboratories are concerned, FSSAI is bringing them under the Indian Food Laboratory Network (InFolNet), a digitally centralised management system that will connect all food labs across India. All the tests and results will be available on the platform for greater transparency and reduction in information asymmetry between consumers and food businesses. It is also in the process of setting up more NABL (National Accreditation Board for Testing and Calibration Laboratories) — accredited food labs across states beyond the two that it owns and operates. Lastly but not the least, FSSAI is about to roll out a “one-nation, one-food-safety law” regime so that every state-level authority follows a common standard of practice for implementation, compliance and enforcement of food safety regulations. It is standardizing the procedures around inspections done at the state level. Food safety experts will now have to follow a set of centrally-prescribed standards. This will eliminate any discrepancies across states and streamline the process of surveillance, sampling and inspection. The states need to play their part in complementing the efforts of FSSAI to ensure food safety. A central body cannot ensure implementation across the country unless states take it upon themselves to drive the required changes at the micro level. It will also be in their best interests to follow up on FSSAI regulations. Ensuring provision of safe and wholesome food for citizens should be looked upon as an investment into increasing the productivity of the workforce that will later reap economic dividends for the state itself. Thus defending itself quite well, Food safety regulator FSSAI has assured citizens that they can trust food they get and is committed to raise the bar of food safety and hygiene for which it is investing Rs 480 crore to modernise state food testing labs. FSSAI CEO Pawan Agarwal has requested the government to recruit 600 people in the central authority to help meet manpower shortage and discharge its function of framing standards as well as ensuring compliances. FSSAI appreciates the inputs from CAG to improve performance of food safety and the CAG report should, however, be seen in the context of the huge and complex task at hand and the fact that FSSAI is an evolving organisation and it faces severe constraints of manpower and resources and is committed to raise the bar for food safety and hygiene in the country so that citizens can trust food they get in the marketplace.

Vol. 10, Issue 10 -March- 2018

AGRO PROCESSING NEWS

India can provide to global processed food market The minister said the food processing industry professionals should develop processed food items that appeal to the palate of the consumers in export markets. “This segment needs to be exploited aggressively apart from exporting Indian food products for use by Indians overseas.”

ommerce Minister Suresh Prabhu was present at the inauguration of the 11th edition of “FICCI Foodworld India 2018” with the theme ‘Capitalising Food Processing in the Digital Era’. The Minister said with increasing output from the agriculture sector leading to a rise in food processing activities, India will be able to cater to the international markets by exporting more processed foods. “Among other sectors, food could be a very important sector (for exports) because now when we have large quantity of agriculture and horticulture products coming in, we will have to process it. When we process it, we need not only cater to the domestic market but we can export it.”

Prabhu said the processed, ready-to-eat food produced under good regulation on safety and standards was a great opportunity for the manufacturing sector with the attendant benefit for downstream industries. Although technology will bring in lot of redundancy and many sectors will be impacted, food processing is a sector which will survive all such transitions. “We are trying to identify sectors which would be growing at a much faster rate than before, and clearly in my opinion, food is one such sector,” he said. Laying stress on the need for exports of marine products, Prabhu said he had urged the Marine Products Export Development Authority to prepare a strategy for export of marine products from India.

Import pulses on ‘actual user’ terms

ndia’s dependence on imports may be reducing substantially as the pulses production looks high likely in 2017-18, following record harvest of 22.95 million tonnes (mt) in 2016-17. Moreover, a series of trade and tariff measures in recent months compounded by recent uncertainty over methyl bromide fumigation (since extended by six months) low domestic farm-gate prices and sluggish market conditions have considerably slowed the arrival of imported material. In the financial year 2017-18, pulses import will be about 5 mt down from 6.6 mt in the previous year. A substantial part of the import took place in the first six months of the current fiscal before trade restrictions started to kick in. While the government must do everything possible to achieve self-sufficiency in pulses on a sustained basis, risks associated with production of the crop cannot be wished away. So, it would be

sensible to keep the import window open in case of an eventuality. At the same time, it is essential to boost greater consumption of pulses as an economical vegetable protein to advance our nutrition security. Supplying pulses under the public distribution system makes eminent political and economic sense. It is required to ensure that excessive quantities are not imported, but just the right quantity that is needed to bridge domestic shortfall, if any. For this, it is necessary to prepare an annual demand-supply estimate by factoring-in income and price elasticity. It would be practical to regulate pulse imports by allowing only ‘actual users’, that is, dal mills, to import. Dal mills convert raw pulses into split / processed dal ready for consumption.‘Actual user’ condition will be in the interest of domestic pulse growers, consumers and the processing industry.

Organic food should compulsorily contain label by July

ith several health-conscious consumers who follow diet plan and preferring organic food, the food regulator has made it mandatory for all the companies selling organic produce to be suitably labeled. Food Safety and Standards Authority of India (FSSAI) issued regulations to food companies who sell organic produce to get certified it with one of the two authorities — National Programme for Organic Production (NPOP) or the Participatory Guarantee System for India (PGS-India). Companies could also get a voluntary logo from FSSAI that marks the product as ‘organic.’ These companies have time till July as thereafter it would be considered illegal to sell organic food that is not appropriately labeled. CEO of FSSAI, Pawan Aggrawal said “From July, any company that claims to sell organic food and not sticking to standards can be prosecuted. Labelling on the package of organic food shall convey full and accurate information on the organic status of the product. Such product may carry a certifica-

tion or quality assurance mark of one of the systems mentioned in addition to the Food Safety and Standard Authority of India’s organic logo.” For nearly two decades now, organic farming certification had been done through a process of third party certification under the NPOP. It was run by the Ministry of Commerce and was used for certifying general exports. Nearly 24 agencies were authorised by the NPOP to verify farms, storages and processing units and successful ones got a special ‘India Organic’ logo. PGS-India programme had been around for only two years and unlike the top-down approach of the NPOP involves a peer-review approach. Here, farmers played a role in certifying whether the farms in their vicinity adhered to organic-cultivation practices. This programme was implemented by the Ministry of Agriculture through the National Centre of Organic Farming.

Vol. 10, Issue 10 -March- 2018

AGRO PROCESSING NEWS

There is still sizeable gap between Himachal formulates specific farm and fork: President schemes to promote horticulture

resident of India Ram Nath Kovind was the key person at the first convocation of National Institute of Food Technology Entrepreneurship and Management (NIFTEM) at Sonepat in Haryana. He stressed on the need to provide benefits of global food trade to farm and farmers of the country. Haryana governor Kaptal Singh Solanki, Union Minister for food processing industries Harsimrat Kaur Badal, Union Minister of State for Food Processing Industries, Sadhvi Niranjan Jyoti, Women and Child Development Minister Kavita Jain were also present at the event. Emphasizing that there is still a sizeable gap between farm and fork, justice must be done with the growers to make their lives better, Kovind stated. The President wondered why advantages of human talent and low cost as in the case of services sector cannot be replicated in agriculture and agro-based industries. “In our country, there is still a sizeable gap between the farm and the fork. This gap is not just a matter of prices or of technology. It is also a gap of justice - justice that we as a society must do to our fellow citizens who toil in far-flung farms.” He further noted, “as a society and as people, we are obligated to make life better for our farmers and to free them from the fickleness of nature and of weather patterns - and to the degree possible, of the unpredictability of demand and supply. This is the resolve of the government, and it has instituted policies and programmes to further this. Use of science and technology along the food chain is essential to these programmes. And this is where institutions such as NIFTEM and those who graduate from here will play a vital role.” Indian food and grocery market was the world’s sixth largest, was expected to touch USD one trillion by 2025. Food items constitute over 11 per cent of the country’s exports. To take this sector to the next level, the government has sanctioned 42 mega

food parks. Kovind said “today, our country is the world’s largest producer of milk. It is the second largest producer of rice, wheat, fruits and vegetables, sugarcane and tea. It is the third largest producer of eggs and sixth largest producer of meat.” In services sector, India has taken advantage of its enormous human talent and lower cost structures to build world-class industries. Kovind noted “there is no reason why we cannot replicate this in agriculture and in food and agro-based industries. Indian farm products - whether rice, milk, fruits and vegetables, or even chillies can flood supermarkets and feed households across the globe. This can help us create numerous employment opportunities for our young people - in cold storages and in preservation, in food processing and along the food supply chain.” In recent decades, the global food trade has undergone revolutionary changes and there is a need to bring the benefits of these changes and potential of this trade to every ‘khet (farm) and every kisaan (farmer)’. Demand for packaged and ready-to-eat food products is rising in India as social habits are changing and nuclear families emerging in larger numbers in cities, Kovind noted. The challenge is to maintain quality, safety and labelling standards for food and ingredients that are up to global benchmarks. It is to make certain that packaged foods promote both convenience and health. They keep alive the nutritious grains and traditional food items that can be found in every state of India. Kovind said, “It is for the food industry to innovate and find easy- to-use solutions to the epidemic of lifestyle diseases in our country. And we have to do all this while being conscious of building our own brands, especially for traditional and nutritive food items that have been the pride of India for centuries and can reach far greater consumers at home and abroad.”

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imachal Pradesh is preparing area-specific schemes to promote horticulture as the state has diverse climatic conditions to cultivate different species of fruits. Horticulture Minister Mahender Singh Thakur said diverse geo-climatic conditions of the state are conducive for cultivation of wide varieties of fruits which could be grown in different parts of the state and as many as 35 species of different verities of fruits could be successfully grown in the state. The field officers and specialists have been issued specifically to visit the farms of farmers in their respective areas and conduct research to explore the possibility of maximum coverage under horticulture activities. These specialists will go in the fields and prepare area specific plans for different regions, keeping in view agro climatic conditions of the area to ensure that optimum survival of plants, the Minister said. Robust plants of fruits of high yield varieties will be provided to farmers in the state after proper soil testing and more and more farmers will be covered under floriculture and horticulture activities, and this endeavor would also open more self-employment avenues in rural areas and strengthen economy. The government has also decided to increase

procurement prices of citrus fruits in the state under market inventor scheme (MIS) and the government would encourage food processing industries for optimum utilisation of horticulture crop. The horticulture department would develop nurseries as per demand of the farmers and according to the climatic conditions of the region and over 4.5 lakh plants would be distributed to the farmers during the next three months through departmental nurseries as per their requirement, Thakur said. He also directed officers to prepare a plan for widening the horticulture activities in the State and farmers would be provided plants after soil-testing in the respective areas. This would ensure greater income to the farmers as they would be able to grow more cash crops suited for their area. Thakur further highlighted the need to provide quality plants to the farmers. Strict action would be taken against those supplying plants of poor variety. The department has to ensure that only high quality plants are provided to the farmers. The state government was making sincere efforts to ensure remunerative returns to farmers of their produce and Apple, Mango and citrus fruits have been brought under Market Intervention Scheme (MIS). Integrated Horticulture Mission was being effectively implemented in the state for development of horticulture and various activities such as plant nurseries, construction of water sources, and increase in horticulture area, protective farming under green house, organic farming, post harvest management and food processing activities would be executed effectively under the mission.

BRANDS ON THE RISE

Vol. 10, Issue 10 -March- 2018

Branded Food Segment in India rising steadily Ready-To-Eat (RTE) food market in India is anticipated to grow at a CAGR of around 22 per cent during 2014-19. The market is expected to grow on account of increasing working population, growing per capita disposable income, rising per capita expenditure on prepared food, increasing middle class and affluent consumers, etc.

s per Ministry of Food Processing, the food processing sector accounts for 1.7 per cent of gross domestic product and is valued at US $ 258 billion likely to grow at a CGAR of 11 per cent to US $ 482 billion by 2020. The latest Annual Survey of Industries indicates that there are 37,175 registered food processing units in the country that have employed approximately 1.7 million people. Increasing urbanization, lifestyle changes, greater affluence, and increased rates of women working outside of the home are driving demand for processed foods. With a population of over one billion, India is one of the largest economies in the world in terms of purchasing power and consumer spending. The International Monetary Fund has projected that India’s GDP will grow by 7.4 per cent during 2016–17, making it the world’s fastest growing large economy. The fast-moving consumer goods (FMCG) sector is an important contributor to India’s GDP growth. The sector includes food & dairy products, packaged food products, household products, drinks and others. According to report, the country’s ready-toeat (RTE) food market is projected to grow at a CAGR of around 22 per cent during 2014-19. The market is anticipated to grow on account of growing working population, increasing per capita disposable income, high per capita expenditure on prepared food, increasing middle class and affluent consumers, etc. With rising employment opportunities and changing lifestyle of consumers, demand for ready-to-eat food products in the country is projected to grow during the forecast period as well. India has a large base of young consumers, who form majority of the country’s workforce. These young consumers hardly find time for traditional cooking due to their busy life styles which further creates significant potential for ready-to-eat food products. Packaged/Convenience Food This segment mainly comprises of pasta, breads, cakes, pastries, rusks, buns, rolls, noodles, corn flakes, rice flakes, ready to eat and ready to cook products, biscuits etc. Bread and biscuits constitute the largest segment of consumer foods. The bakery manufacturers in India can be differentiated into the three broad segments of bread, biscuits and cake. About 1.3 millions tonnes of the bakery products industry in India is in the organized sector out of 3 millions tonnes, while the balance comprises of unorganized, small-

scale local manufacturers. India’s exports of processed food and related items rose at a CAGR of 21.5 per cent during FY11–16, accounting for US$ 19,337.4 mn in FY16. Consumption Consumption in volume and value terms, sales of every category of processed foods increased significantly between 2011 and 2015. Industry sources estimate that over 400 million consumers consume some type of processed food regularly. A number of factors have combined to spur increase in the consumption of packaged foods such as strong economic growth in recent years. Increase in the number of working women, urbanization, nascent development of modern retail; emergence of foreign and international brands, significant improvements in packaging and quality and savvy marketing campaigns. Expansion is being driven by domestic and multinational companies. Urban areas account for over 75 per cent of sales as consumers seek convenience and quality in processed foods. For higher value frozen and refrigerated foods, sales are almost exclusively in urban areas. Rural areas tend to have lower incomes and a preference for fresh ingredients. Nevertheless, rural areas are emerging as a market for well-priced shelf-stable foods. Consumers in developed markets are more open to the idea of packaged food, which manufacturers often position on the basis of convenience, nutrition, ease of use and food safety. This is something they need to do more of to attract Indian consumers. The Indian packaged processed foods industry is estimated at US$ 10.87 bn – US$ 13.05 bn, including biscuits, chocolates, ice-cream, confectionery, snacks, cheese and butter. Market Size of Food Categories Dry Food Grocery category as a whole contributes 34.7 per cent to the total food market in India. The category includes cereals, grains and related products; pulses and its products; sugar in all forms; edible oils and dry fruits. The large market size of this category, highest among all food groups is attributed to the fact that the products that fall in this category are consumed in raw as well as semi-prepared form. India’s DFG market is worth Rs 8, 00,000 crore (2014) and has grown at a CAGR of 11 per cent over the last decade. With this growth rate, the category is all set to touch the Rs 15, 00,00 crore mark by 2020, thus becoming almost double of what it is today.

Milk and Dairy foods constitute the second-highest share, after dry food grocery, among all the seven F&G categories. The segment holds about 16 per cent of the overall food market in India. The country is the largest producer of milk in the world and has a substantially large bovine population with about 118 million milk-producing animals. India contributes 16 per cent of the world’s milk production followed by USA with 12 per cent contribution. Milk and related dairy products are worth Rs 3, 62,000 crore market and have grown at a CAGR of 12–14 per cent during the last decade. The market is estimated to cross Rs 8,00,000 crore by 2020. About 58 per cent of India’s dairy products market lies with rural consumers and the remaining 42 per cent with urban consumers. Spices category is another leader in the food industry. The current market for spices is estimated at Rs 1, 50,000 crore and has grown at a CAGR of 13 per cent over the last decade. By 2020, the market is likely to grow twice its present size with the same growth rate. In other words, about Rs 6,000 crore is estimated to be the branded market in spices. India is estimated to consume over 5 million tonnes of spices annually. This consumption is almost 90 per cent of all spices produced in the country. Ginger- garlic, dry chillies and turmeric together contribute 44-48 per cent of total spices in India. This consumption share is not much varied in rural and urban markets. Fresh Produce market in India is about Rs 3,90,000 crore and growing at a CAGR of 14 per cent since last 8–10 years. At the same growth rate, the category will be worth Rs 8,50,000 crore by 2020 riding high on healthy food habits that demands significant portion of fresh produce in daily diet. Fresh produce covers just two broad segments of fruits and

vegetables. Among the two, 70 per cent is contributed by vegetables alone. Although fruits are a growing segment, they contribute a current share of just 30 per cent, which translates to Rs 1,17,000 crore worth of market. Out of the total fresh produce market of Rs 3,90,000 crore, 60 per cent is rural market. Perishables food market is worth Rs 2,00,000 crore and has grown at a CAGR of close to 20 per cent. This growth rate is among the highest for all food groups. With the same growth rate, the market is expected to treble by 2020, in which the segment for fish, seafood and meats will grow at a faster pace owing to the growing demand for such food items. The four primary sub-segments of perishables include fish & seafood, meats including mutton, beef, pork, poultry and game birds, and eggs. About 45 per cent of total market share is occupied by fish & seafood. The largest market segment of fish & seafood is thanks to a vast coastline and fishing inland waters, which a large country like India possesses. In addition, there is a sizeable share of imports of canned seafood and fisheries, which is growing in demand and size. The domestic consumption is no more confined to coastal areas but has penetrated deeper into the mainland markets also. Beverages category contributes 8–9 per cent to the total F&G market in India. By far, tea is the largest segment of beverages in India ruling over 79 per cent of the market. Together with tea, coffee is another strong beverage market. The market for coffee is growing at 20 per cent and will treble its present size in next 4–5 years. Various types of coffee in the market are available at all relevant pricepoints. The overall coffee market, though, is very small in comparison to tea market but the southern region alone contributes 73 per

Vol. 10, Issue 10 -March- 2018

cent of the total coffee market. This is followed by the western region with 14 per cent share. The monthly per capita consumption for coffee in the southern region is Rs 17 against the national average of Rs 5. Packaged drinking and flavoured water is the smallest segment in beverages market. The segment, which is growing at a healthy rate, will be worth Rs 6,000–7,000 crore by 2020. The market is urban-centric with 85 per cent share. Within this market share, half of it lies in eastern region of the country whereas western region has the lowest consumption. The monthly per capita consumption is Rs 4 in the overall urban market but urban eastern region has a higher consumption figure, which is three times higher at Rs 12. About four per cent of the total beverages market is formed of the juices segment. The segment is growing at 20–25 per cent and is expected to grow almost four times bigger in the next five years. Today, Indians are spending at an average just Rs 6 per month on juices, which is less than what they are spending on other beverages. Other Processed Foods category market is over Rs 2, 00,000 crore and is strongly growing at a CAGR of over 20 per cent. Biscuits market with the growth rate of 20-23 per cent will eventually cross the current size of total OPF market by 2020. At present, 46 per cent of biscuits market lies with urban consumers using the products. In this urban market, the western region alone contributes 31 per cent. It is estimated that the ketchup market is worth Rs 220 crore in India. Namkeens & Snacks segment can be truly and aptly defined as ‘Indian’ OPF segment. The constituting products cover thousands of snack items manufactured in traditional as well as modern set up. Industry reports attribute the branded namkeen market segment to hold 40 per cent of total salted snacks market in India. Key Factors Driving Growth The industry is growing at a healthy 14-15 per cent over the past two-three years. Rising Disposable Incomes Income growth has increased consumer appetites and discretionary spending. This shift in spending appears promising for manufacturers and service providers; especially, in hotel, leisure, healthcare and household goods and service categories. According to the Government of India, the per capita net national income during 2015-16 was $1,381 (INR 93,231); a rise of 7.3 per cent over the previous period. Women in Workplace and Changing Lifestyles Increases in urbanization and the number of working women has pushed consumers to look for products offering convenience. This will lead to trading up from unpackaged to packaged and unbranded to branded products. Urbanization will continue driving consumers towards packaged foods, as well. Additionally, consumers have gained some health consciousness – a development which has led them to choose their packaged foods products more wisely. Given that the industry is underpenetrated, improved competition will create more awareness and better availability through stronger distribution and bolster volume growth. Demographic Changes Current population in India is nearly 1.25 billion, up from 670 million in 1980. The pace of growth is slowing but the country’s age structure promises continued gains for some time. The median age is rising over time but is still relatively low – just 27.6 years in 2015. About 415 million people (33 per cent) of

BRANDS ON THE RISE

India’s population is classified as urban and nearly 56 per cent is under the age of 30. The Indian government projects that there will be 400-500 million people in the work force before 2025 but if female empowerment takes off that figure might increase to 600 or 700 million. Rising Organized Retail and E-retail outlets Although small, traditional outlets dominate the Indian food retail sector and account for 98 per cent of sales, modern retail chains offering a consumer-friendly shopping experience are emerging and stores now exceeded 3,200 in 2014. India remains a growing market for consumer-ready food products. With a sharp rise in mobile penetration across India, online and e-commerce retail opportunities have opened up and afforded options to consumers on payment mechanisms as well as conveniences for time and cost savings. Government Policy (Foreign Direct Investment Policy) India ranks 130 out of 189 countries in the ease of doing business as per the World Bank Report, 2016 and has moved up four places from last year’s ranking of 134. The Government of India has simplified investment procedures in the food processing sector in an effort to attract foreign investment and boost job creation. The number of food products reserved for small scale industries has been reduced; investments are permitted under the “automatic route” which simplifies capital reporting procedures; and up to 100 per cent foreign equity can be invested for most products as listed under the Consolidated FDI Policy; As per current policy, the government allows 100 per cent foreign direct investment (FDI) upon approval and for any foreign investment beyond 51 per cent, it is required that 30 per cent of the value of goods be sourced from India. ‘Controlled conditions’ clause for 100 per cent FDI under “automatic route” for animal husbandry has been done away with. To encourage the development of food processing industries, the Government reduced excise duties on food processing and packaging machinery from 10 to 6 per cent, allowed food processing units a 100 per cent income tax exemption on profits for the first five years of operation and a 25 per cent income tax exemption on profits for the next five years as well as other incentives. According to the Ministry of Commerce, the food processing industry has attracted investment valued at U.S. $7.3 billion during 2000-16 of which only 2.36 per cent was in the sector. Wide array of products, coupled with increasing global connectivity, has led to a change in the tastes and preference of domestic consumers Major Food Processing Players in the Indian Market Amul India’s largest food products marketing organisation, Gujarat Co-operative Milk Marketing Federation Ltd (GCMMF), which markets the Amul brand of milk and milk products, has been recognised as the country’s best Fast-Moving Consumer Goods (FMCG) company in the food sector by the International Advertising Association (IAA). Amul is India’s largest food brand with annual brand turnover of Rs. 38,000 crores. It is a cooperative milk federation of 36 lakh milk producers of Gujarat. GCMMF turnover has registered a quantum growth of 238 per cent in the last seven years, which implies an impressive cumulative average growth rate (CAGR) of 19 per cent during this period. GCMMF is currently procuring 180 lakhs li-

tres of milk per day through 18,600 village dairy cooperative societies. ITC ITC Ltd, the Kolkata-based cigarette-to-noodles maker, has set an internal target of generating Rs.65,000 crore from packaged foods by 2030 to reach its goal of Rs1-trillion revenue from non-cigarette packaged goods by that time. “ITC’s foods division will be a significant contributor to our goal of achieving Rs1, 00,000 crore turnover from the new FMCG businesses by 2030. Our vision is to contribute at least 65 per cent of this turnover,” said Hemant Malik, divisional chief executive (foods), ITC. According to ITC, its branded packaged food business crossed Rs8,000 crore in the fiscal year ended 31 March 2017 (FY17). While the number may seem ambitious, ITC’s target may be achievable if it grows at a compounded annual growth rate of 17.49 per cent (in food business) consistently over next 13 years. During the past 13 years, packaged food company Britannia Industries Ltd has grown at a CAGR of 17.48 per cent and Nestle India Ltd has grown at 11.01per cent . ITC has grown faster at 17.97 per cent during the past 13 years. TATA Global Beverages Ltd.With Rs.6,000 crores as its market capitalisation TATA beverages are No.2 in Tea worldwide. It is a part of the Tata Group. With the inception of TATA tea in 1983, there is no looking back. The company acquired the Tetley group UK in 2000 & in 2010 TATA global beverages corporate announced formation of Pepsi JV. Its famous brands are TATA tea, Tetley, Himalayan water, Good earth. Mondelez international In its 70 years of presence in the country, the U.S.-based company has grown to dominate the Rs 8,500-crore Indian chocolate market with a share of 65 per cent. DairyMilk accounts for 41 per cent of the pie, the highest market share it has anywhere in the world. Another factor that has prompted the company, which also produces Dairy Milk Silk Oreo, Cadbury Fuse, Cadbury Lickables and Monster Gems, to expand its reach is the spike in demand from rural areas, where the market is growing 1.5 times to 1.8 times that of cities and towns. Haldirams A business enterprise which started with a small shop in Rajasthan’s Bikaner, Haldiram’s is now the biggest snacks maker in India with an annual turnover of Rs 4,000 crore. Haldiram’s, worth estimated to be about Rs 5000 cr is the second largest Indian food brand after Parle and the leader in traditional snacks market, dominating five of its rivals — Balaji Wafers, Prataap Snacks, Bikanervala, Bikaji Foods and DFM Foods. The company sells its products through three branches, Haldiram Snacks and Ethnic Foods for the northern region, the Nagpur-based Haldiram Foods International for the western and southern markets, and Haldiram Bhujiawala for the eastern market. Hatsun Agro Product Ltd With a market capital of more than Rs.10,000-crore Hatsun Agro Product Ltd is India’s largest private sector dairy company, has clarified that its products including Arokya, branded liquid milk, meet the highest quality standards. RG Chandramogan, Chairman and Managing Director, Hatsun Agro, said the company directly procures milk from over 4 lakh farmers spread across 10,500 villages across South India. The company has a modern infrastructure to chill and process the milk with over 10,150 collection centres, 98 chilling centres and 395 bulk

coolers and over 2,400 distribution centres with cold chain infrastructure.Hatsun Agro collects about 27 lakh litres of milk daily and can handle up to 32 lakh litres and has one-third of the market share in Tamil Nadu where the estimated demand is about 62 lakh litres. Arokya Milk and Hatsun Curd are the largest brands in their segments and the company is also known for its flagship Arun Ice Creams, Hatsun branded dairy products and Santosa cattle feed. Hatsun Agro’s products are exported to over 40 countries globally. Observing the unprecented growth company has charted out Rs.850-crore expansion plan over the next two years through market penetration and exploring new horizons. Nestle Ltd Nestle India is a subsidiary of Nestle S.A. of Switzerland. With a market cap of Rs.35, 000 crores it operates with seven factories and a large number of co-packers. The main business includes manufacture of Milk products. It specializes in infant food, while the other products in this range are ghee, dahi & dairy whitener. It also has a diversified product chain like prepared dishes & cooking aids – the major one being Maggi, others are sauces, pasta, beverages like coffee & iced and instant tea. Nestle is also known for its chocolate & confectionery range the major brands being Kitkat, polo & bar-one. Company reported a 6.7per cent growth in profit for the quarter ended 31 March 2017, backed by higher sales in the domestic market. Profit for the period stood at Rs306.76 crore as compared with Rs287.32 crore reported in the year-ago quarter. Sales from domestic market increased by 9.7 per cent during the January-March quarter while total sales rose by 9.1 per cent to Rs2,575.74 crore as compared with Rs2,360.80 crore in the year-ago quarter. The Road Ahead Indian packaged food (snacks) industry still has untapped segments and an under-penetrated rural market. Furthermore, export opportunities are rising with India’s growing integration with the global economy, its proximity to key export destinations like Middle East and expected spike in global demand as emerging markets grow at a fast pace. Despite huge potential, Indian packaged food (snacks) industry faces challenge in terms of basic infrastructure, such as lack of adequate number of cold storage ware houses, efficient supply chain management for movement of perishable items etc. The industry is also prone to the vagaries of price fluctuations in the commodity that they utilize and is highly fragmented with presence of several regional players apart from few national level players. Recently, many small regional players have mushroomed across the country which has added to competitive intensity of the industry. Hence, the biggest challenge for the industry players is to scale up their regional presence to a national level while maintaining highest quality standards.

Vol. 10, Issue 10 -March- 2018

CORPORATE NEWS

“Monk fruit emerges as a unique solution for natural low-calorie sweetness” sists of high-intensity sweeteners or synthetic sugar alcohols. Monk fruit juice is a truly unique ingredient because it offers great-tasting low-calorie sweetness from a fruit juice. Using monk fruit juice, formulators can significantly reduce or replace added sugar, and achieve a clean-label with a consumer-friendly, simple fruit juice ingredient. When you consider the evolving consumer perceptions around natural, monk fruit juice is a compelling alternative to high-intensity sweeteners and synthetic sugar alcohols.”

or years, food and beverage companies have been looking for natural alternatives to sugar. Monk fruit juice concentrate is a solution that provides natural sweetness with significantly lower calories than sugar or other fruit juices.

on) family. Monk fruit is also known by its Chinese name “luo han guo”. Monk fruit has been cultivated in Southern China for centuries where it is consumed as an everyday food and used in traditional Chinese medicine. Monk fruit is rich in amino acids, vitamin C, and beneficial trace elements.

With a very clean flavor profile and no lingering bitterness, monk fruit juice is an ideal solution for reducing or replacing added sugar in foods and beverages. Today monk fruit is found in products from some of the world’s largest food and beverage companies including PepsiCo, the Coca-Cola Company, Nestlé, Kellogg, Danone, and General Mills.

Monk fruit is known for its characteristic intensely sweet taste. The fruit derives its intense sweetness from naturally occurring triterpene antioxidants known as mogrosides. Because of the presence of sweet mogrosides, monk fruit juice is approximately twenty times sweeter than other fruit juices.

Monk fruit is the common or usual name for the fruit from Siraitia grosvenorii; a perennial subtropical vine in Cucurbitaceae (cucumber or mel-

“Monk fruit juice really is a new way of reducing sugar and calories.” said Yashvir Ahluwalia, Vice President Sales and Marketing for Monk Fruit Corp. “Today formulators have a toolkit that con-

With a compelling, uniquely differentiated value proposition, we believe monk fruit juice will play a key role in future global solution for sugar and calorie reduction. Monk fruit has traditionally been grown on the steep forested mountains of Northern Guangxi province in China. However, to meet stringent quality standards of global food and beverage customers Monk Fruit Corp. has established a world-class supply chain which includes a dedicated grower network that exclusively cultivates monk fruit seedlings using the latest horticultural methods. Monk Fruit Corp. has annual processing capacity for more than 14,000 metric tonnes of fresh fruit. Monk Fruit Corp. is a New Zealand/China Joint Venture and is the only company in the world that is focused solely on the cultiva-

NATURAL INGREDIENTS Natural Sweetener -STEVIA (PureCircle -Malaysia) Natural Colours (Naturex -France) Natural Fruit Powders (Naturex -France) Natural Vegetable Powders (Naturex -France)

BULK SWEETENERS Erythritol (Sanyuan -China) Maltitol (Roquette -France) Xylitol (Roquette -France) Sorbitol Powder (Roquette -France)

STABILIZERS Pectin (Ceamsa -Spain) Carrageenan (Ceamsa -Spain) Sodium Alginate (Ceamsa -Spain) Citrus Fibers (Ceamsa -Spain)

MODIFIED STARCHES Clearam CH2020 E-1422 (Roquette -France) Clearam CR3010 E-1442 (Roquette -France) Pregeflo CH2020 E-1422 (Roquette -France)

NATIVE STARCHES & DERIVATIVES Wheat Starch (Roquette -France) Potato Starch (Roquette -France) Maltodextrin Maize Starch Dextrose Liquid Glucose

OTHER PRODUCTS Glucona Delta Lactone(Roquette -France) Maple Syrup (Citadelle -Canada) Maple Sugar (Citadelle -Canada) Cranberry (Citadelle -Canada)

www.devson.in

tion and processing of monk fruit. Monk Fruit Corp is the world’s leading monk fruit company in terms of market share and product range. It has earned this title through more than a decade dedicated to innovation and leadership in the monk fruit industry. Monk Fruit Corp. has offices in China, USA, New Zealand and India and is selling monk fruit ingredients to many of the world’s largest food and beverage companies. Monk fruit has now been used in more than 2,000 product launches globally since 2010. Monk fruit juice concentrate is now available in India.

ARTIFICIAL SWEETENERS Aspartame (Ajinomoto -Japan) Acesulfame K (Suzhou Hope -China) Sucralose (Kanbo -China)

NUTRACEUTICAL INGREDIENTS Amino Acids (Ajinomoto -Japan) Omega 3 (DHA/ALA) CLA Green Coffee Bean Extract Phaseolamin

Vol. 10, Issue 10 -March- 2018

SNACKS NEWS

Kellogg’s goes for larger innovations and beyond breakfast

ichigan-based Kellogg Company came to India in 1994 and since then it has constantly worked on changing the breakfast habits of consumers in India. Though the company was not able to break through the complex breakfast routine of Indian consumers have not entirely transformed. But Kellogg India’s strategy to imbibe it has been quite successful and now they are on full swing to craft cereal in an allday snacking product in addition to a breakfast item. The business of Kellogg India has been clocking double-digit growth over the past seven years and is now focusing on fewer bets versus a larger pipeline of innovations. Of course new ideas and strategies has been streamlining as the leadership of the company has changed with Mohit Anand taking over as the new MD (India & South Asia), who believes that a food company, Kellogg is moving towards the passion for foods.The canvas just got wider for

Bonn enters Sothern market for expansion

eadquartered in Ludhiana, manufacturer of bread and bakery products — Bonn looks for expansion as they enter South in five states from March 1. The five states, where Bonn will start its aggressive marketing, include Telangana, Andha Pradesh, Tamil Nadu, Karnatka and Kerala. Director, Bonn Group of IndustriesAmarinder Singh reveled this as he launched six new variants of biscuits/cookies recently.

The company is known for their quality breads and biscuits, and is pioneer in starting production of cookies on an industrial scale in India The six new variants launched here by Bonn, include ‘Americana Choco Nut’, ‘Americana Butter Cookies’, ‘Americana XOXO Chocolate Crème’, ‘Orange Crème’, ‘Bonn Free Kick’ and ‘Tomato Tangy’. CMD of the company, Manjit Singh said the company was exporting products in over 55 countries. Bonn COO, Pankaj Aggarwal said the company started its new range of biscuits and cookies for a simple reason that the premium biscuit segment was growing at the rate of 20 to 25 per cent.“This clearly shows that consumers demand unique formats and richer flavors at reasonable prices. The market of bakery products is huge in India and in the next few years, it will witness sharp increase further.

www.agronfoodprocessing.com

Kellogg India to explore growth opportunities with its products at and beyond breakfast, while catering to local tastes. Kellogg’s is cashing on peoples lack of time as around 72 per cent of Indians skimp on breakfast and more than 50 per cent do it because of lack of time. The company is making cereal a no in time breakfast and focusing on getting more local. Kellogg takes comfort in the fact that India is the largest grains market, opening up the opportunity wide for any packaged foods company playing in grains-related packaged products. Kellogg India plans to enter other newer arena in food sector but for the moment it is emphasising on growing its core products, where Kellogg’s Chocos is the largest selling stock keeping unit (SKU), what boosted the company’s hopes is the performance of its new snacking product, Chocos Fills, a grainbased Indian innovation.

Parle aims to be Rs 200-bn company in next 5 years

he most popular biscuits and confectionery maker in India, Parle Products aims to increase their turnover and cross Rs 20,000 crore in the next five years. The company also expects the staples and snacks segments to be its growth drivers in the coming years. As part of its growth strategy, the company is expanding its product portfolio and looks to become a total food company, by filling up gaps in its offering. Parle Products Category Head, Mayank Shah said “We are looking to double our turnover 2023-24. Parle Products is a privately held company with a current turnover of Rs 10,000 crore. This growth would be mostly going through the organic way rather than acquisitions. Eventually, we are looking at several other categories and whenever and wherever there are opportunities, we would grow into a total food company.” The company has got into snacks, bakery items like cakes and rusks and ventured into staples such as pulses. It is present in the premium chocolate segment. Parle Products is now tapping both - re-

tail as well as institutional markets as hotels, which buys in bulks through its innovative offerings as Zeera Jeffs biscuit. Parle Products Category Head, B Krishna Rao said “in last couple of decades, we have made movements as a whole food company rather than as a company which has only couples of line.” Parle Products has ventured into staples segment by launching pulses and plans to increase its offerings and distribution. Presently, in pulses, Parle is present in two states- Maharashtra and Karnataka in five segments - arhar daal, Chanal, masoor, urad and moong daal. “ Pulses is a big opportunity and it’s a future for us,” he said adding gradually Parle would expand its presence to a pan India level. There is a trend to buy more packed item. Moreover, people have become more sensitive towards quality and issue of adulteration, which is the biggest problem,” adding that there is a trend of conversion of unorganized to the branded segment.

Vol. 10, Issue 10 -March- 2018

FOOD RETAIL NEWS

Evolution of India’s food sector- next decade to be about health and wellness

n recent years, India has performed greatly amid easing of economic growth in China and recession in Brazil and Russia. India’s packaged food market is growing and the market has attracted increasing interest from food multinationals searching for growth avenues.

ing technology and innovation to make traditional foods more palatable for the consumer. Developing experience in modern retail techniques and looking to develop online sales. Also improvement in cold chain has boosted the sector. The development of India’s supply chain has helped the food business grow across India. The increasing availability of cold chain is combining with better road infrastructure to make meat products more available across India. US Department of Agriculture data released in 2016 projected demand for processed chicken meat in India will grow at between 15 to 20 per cent until 2020.

But what will evolve India’s packaged food market in next decade is the most important question this publication explored; If the last ten years was about India opening up to the global palate, the next decade will be about health and wellness, with more consumers interested in health and hence interested in healthy food. Indian consumers are increasingly looking to gain health benefits and also tap the traditional Ayurvedic food and nutraceutical industry.

The most recent National Sample Survey Office (NSSO) data on ‘Household Consumption of Various Goods and Services in India’, based on the last census, covering 2011-12, says 6.4 per cent of rural Indians eat mutton, 21.7 per cent eat chicken, 26.5 per cent consume fish, while 29.2 per cent eat eggs. In urban India, 10% indulge in goat meat/ mutton, 21 per cent eat fish, 27 per cent chicken and a huge 37.6 per cent more than a third of the urban population, eats eggs.

Like BigBasket, an online grocery retailer, with a focus on fresh fruit and vegetables, has created healthy food lines as a separate category among its offerings. Big is now providing a wide range of private labels offering a lot of health-focused products, under the branding of Good Diet?

Frozen food sales have been a big beneficiary, with high double-digit growth. According to 2016 study, the frozen food market in India is projected to register a CAGR of 15 per cent during 20162021. The Indian consumer is beginning to believe that frozen is also fresh.

Based on in-depth analysis of the buying behaviour of more than 500,000 customers of BigBasket over the last year, the company assessed that India’s emerging food sector demand is in health, organic, Ayurvedic and RTE (ready-to-eat) categories.

Perishable foods across the board have also benefited, with sales of fish, seafood, meat and eggs currently worth INR 2 trn. These sales have been growing at a CAGR of close to 20 per cent said a note from the market researcher. While this is a positive trend, the packaged branded food sector still has work to do to make the most of this demand: about 45% of India’ total perishable food market comprises fish and seafood.

Sales of organic food in India are expected to increase from US$500m to $1.36bn in 2020 according to a study jointly conducted by industry body ASSOCHAM and private research firm TechSci Research. In the last two years, Indian households buying products with no-added sugar had grown by 700 to 1,000 per cent and number of households buying natural/Ayurvedic food products has grown ten times over the last two years. Moreover, sales of weight control products, such as healthy roasted snacks, and products perceived to be healthy, such as fruit juices, are growing at increasingly fast paces. Also there will be a significant class of population, around 50 years of age, who want to stay young and healthy and have disposable income to spend on anti-ageing and health and wellness products. These will need to be served by India’s innovative branded food sector. The phenomenal rise of India’s Patanjali brand (marketed by local FMCG group Patanjali Ayurved and led by guru Baba Ramdev) has made the country’s food industry sit up and take notice. Other brands have also tapped into demand, with rival wellness brand Sri Sri Tattva, which is led by another guru, Sri Sri Ravi Shankar, growing. Sri Sri Tattva is making a distribution push, opening exclusive franchise stores this year where lifestyle consultants and doctors will advise consumers what type of food is good for you and when to consume it. The company is focused on us-

Online retail and the growth in modern retail outlets are changing the way Indians shop. Mobile phone penetration in India is set to rise to 85-90 per cent by 2020 from the current levels of 65-75 per cent. Modern retail and online shopping helps to generate significant amounts of consumer data, which, it is claimed, will help branded manufacturers and retailers, sell food in India, honing their distribution and production. E-commerce, plus the use of social media, is becoming an increasingly popular way for Indian food suppliers, manufacturers and retailers to secure consumer feedback in real time. Some brands focus on using third party e-tailers who offer established sales data gathering systems. The evolution of present retail system in India, where distribution clout and packaging is all important, will mean in the coming decade manufacturers and retailers will have to be more sophisticated in what goods they offer particular market niches and how.

Online food delivery market growing steadily as investments pours in The resurgence in the food delivery sector comes two years after TinyOwl cut jobs and shut operations in many cities. Later TinyOwl later merged with logistics company Roadrunnr in a distress deal. Along with TinyOwl, several other food delivery companies struggled as investors declined to fund them further. Some such as Dazo and Spoonjoy shut down.

ver past six months, Indian food delivery sector has made a comeback with new funding in its pocket. Market leaders Zomato and Swiggy have raised large funding rounds, cab-hailing firms Uber and Ola, attracted by the runaway expansion of Swiggy are investing hundreds of crores of rupees to gain a slice of the market. The online food delivery market is growing at a steady 15 per cent quarter-on-quarter in terms of daily food orders. And hence the food-technology sector is expected to touch at least $2.5 billion by 2021 from its current size of about $700 million. Bengaluru-based Swiggy leads the stack with a 35-38 per cent market share, followed by Zomato at 25-30 per cent. UberEats, the food delivery business of cab major Uber Inc., which was already operational in several countries, entered the segment in India last year. In fact Ola, which had shut its food delivery business of Ola Cafe in 2016, re-entered the space by acquiring Foodpanda’s India operations in December, and said it would invest $200 million to expand the business.

But Swiggy succeeded and now has raised more than $200 million in capital since starting out in 2014. The deliver company has announced its latest funding round of $100 million, led by Naspers this month. Because of the speed and consistency of its logistics network, an easy-to-use app and a large network of restaurants, Swiggy quickly became the largest food delivery app. Learning by Swiggy’s success, rival Zomato was forced to launch and then expand its delivery business. Uber and Ola have now joined the race, making food delivery one of the most competitive areas in the consumer internet sector. The top cities for food tech firms include Bengaluru, Delhi, Mumbai, Pune, Kolkata and Hyderabad. Chennai recently joined the list of top cities. The 7 cities together contribute to 87 per cent of the overall market. Food tech start-ups are also introducing new initiatives for restaurants. In November 2017, Swiggy had launched Swiggy Access, a programme which allows its restaurant partners to set up kitchen spaces in neighbourhood where they don’t currently operate. Zomato is also working on a similar model for its partner restaurants.

Patanjali aims to increase farmers’ income tenfold

EO of the multi-products FMCG company Acharya Balkrishna was present at Advantage Assam-Global Investors Summit’18 in Guwahati. The two-day event showcased the state’s manufacturing opportunities and geostrategic advantages to foreign and domestic investors. The Summit has been organised by Assam Government, in association with industry body the Federation of Indian Chambers of Commerce and Industry (FICCI), aiming to position the state as India’s Expressway to Association of Southeast Asian Nations (ASEAN) countries. The CEO said since Prime Minister Narendra Modi has a target of doubling the income of farmers, if businessmen and industrialists take a pledge to not let waste products of farmers then their income can be increased by ten times within three to four years. Patanjali is moving forward with an aim to increase the income of farmers tenfold. Patanjali is marching ahead with an aim of increasing farmers’ income by tenfold. Balkrishna highlighted the low rate of food processing in India. “Where as USA process 90 per cent of its food, China 40 percent, Thailand 30 per cent but India processes only six to eight per cent of its food.” Patanjali has been doing significant work in food processing sector. “India currently pro-

cesses 7 crore tonnes food, and out of it, Patanjali processes around 20 lakh tonnes. Patanjali has set a target of processing one crore tonnes food by 2020,” Balkrishna said. Patanjali CEO also highlighted the opportunities in the northeast. “Patanjali has also started its activities in Northeast because there are many opportunities. In Northeast, around Rs, 1350 crore has been invested in food processing industry and out of it Patanjali has invested 1200 crore. ”In regards to the medicinal plants, “out of world’s over 3 lakh medicinal plants, around 22000 in India. There are 7000 medicinal plants are in northeast. Out of 30 per cent of available biodiversity in India, 20 families of plant are the world’s oldest. World’s oldest medicinal plant family is in northeast,” he said. Outlining Patanjali’s Corporate Social Responsibility (CSR) activities, Balkrishna said that Patanjali is also conducting a training programme for cultivation and seed banks are being established, ayurvedic college and schools, free yoga classes. There are number of focus sectors, identified by the state, which includes agriculture and food processing, organic farming, bamboo, handloom, textile and handicrafts, inland water transport, riverfront development and logistics.

Vol. 10, Issue 10 -March- 2018

RETAIL NEWS

Online grocery to be the fastest Nestle implements regional cluster approach to accelerate growth growing segment in e-retail market

estle India has instigated its regional, cluster approach for brands, marketing and activation to fast-track growth and has identified enhanced nutrition as a core focus area, informed the company’s Chairman Suresh Narayanan. The maker of Maggi instant noodles, KitKat chocolate and Cerelac infant foods crossed Rs 10,000 crore in sales for the year ended December 2017, will push increased penetration of products for volume-led growth, which would lead to profitability. Nestle India is targeting a minimum 3-5 per cent incremental sales each from the regional variants and is developing a structure to divide markets into 10-15 clusters, and are segmenting product variants, distribution, sales, marketing and communication in relevant geographies. Product segmentation would mean regional variants of existing brands across the portfolio, for example, for ketchup, coffee and confectionery. To fulfill the consumers’ demands and needs, the company is functioning on reducing salt and sodium content in Maggi noodles by 10 per cent over

the next 12-18 months. It has reduced sodium and salt content in Maggi noodles by about a third over the past few years, and last year, reduced sugar content in chocolate brand Milkybar and Milo milk drink.

and discounts. Online grocery is to be the fastest growing segment with an average growth rate at 65-70 per cent between financial years 2017 and 2020, while the revenues may quadruple over the next three years to Rs 100 billion.

Also Nestle will fasttrack innovation and is looking at a double strategy of hyper localization and bringing in new products from its global portfolio including protein supplements. Narayanan said of the over 40 new products that were launched last year, about 10-15 per cent needed to be re-tweaked or discontinued, while the rest were successful. He said premium coffee and snacks were potential categories the company is actively exploring venturing into.

The growth in the segment would be driven by investments in technology, new strategies adopted by players such as introducing private labels, same day and next day delivery as well as B2B food services. In the overall food retail industry, the penetration of online food and grocery stands at a miniscule 0.1 per cent, indicating significant growth potential.

Its mainstay brand Maggi contributed 35 per cent of the company’s reported growth in 2017, while 25 per cent growth came from new products. The last couple of quarters have been fairly encouraging for the Indian arm of Swiss giant in terms of urban consumption, along with relatively stable commodity prices. Rural growth could be impacted by monsoons, but the company expects mid to high single growth.

Popular food delivery firm Swiggy launches services in Jaipur

n the next three years, e-retail market is likely to grow over twofold as players will be forced to shift their focus from geographical diversification, discounts to consolidation, business realignment and enhancing customer stickiness Going by the 2016-17 data, e-retail market represents about 1.5 per cent (Rs 700 billion) of the overall Rs 49 trillion retail sectors in India, representing enormous growth potential. The online shopping segment has trebled over the past three financial years on rising internet penetration, awareness of online shopping as well as productive deals

Walmart, McDonald’s, Starbucks among India’s best workplaces in 2018 sector of India which covers 29 companies that operate majorly in the offline format and assess their workplace culture. Other food companies which were included in the list of top 10 workplaces in 2018 food chain Barbecue Nation and Starbucks.

delicacies accessible to Jaipurites in the comfort of their homes with just a touch of a button.” Jaipur residents have taste for their love for desserts and often start their meals with a slice of their favorite confectionery. Swiggy has brought popular local mishthan bhandars on board.

aining popularity among consumers, Swiggy which has become India’s largest food ordering and delivery platform enters the Pink city - Jaipur. Swiggy has now expanded its operations to Jaipur. Being known as the go-to app for food lovers in Mumbai, Delhi-NCR, Bengaluru, Chennai, Pune, Hyderabad, Kolkata, Ahmedabad, and most recently Chandigarh, the company is known for its convenience, choice and reliability.

More than 300 of the city’s top-rated restaurants across areas such as C Scheme, Vaishali Nagar, Malviya Nagar, Raja Park and Jawahar Nagar are already available on the food ordering and delivery platform. VP – Marketing of Swiggy, Srivats TS said “Jaipur is known for both its rich cultural and culinary heritage. Over the last few years, the city has seen a slew of exciting new eateries and cafes that have enriched its gastronomical choices further. Jaipurites are now enjoying everything from Baati Chokha to Caesar Salads. We’re excited to bring our lightning-fast and hassle-free ordering and delivery service to the city, making these

Restaurants like DMB and Agrawal Caterers that did not do home deliveries previously can now be enjoyed exclusively on Swiggy. With its promise of -fast delivery and features like easier discovery of food and restaurants, personalized suggestions, faster order placement, and a seamless ordering and live-tracking experience, Swiggy will usher in a new era of food ordering in the city. To this effect, it is also offering free deliveries on order values over Rs 99. Swiggy connects foodies with the choicest restaurant options with over 300 of best restaurants in the city, including Burger Farm, Brown Sugar and Marky Momos. Swiggy will deliver from a wider radius of as much as six km. Consumers can not only order from these restaurants without any restrictions on the minimum order value, but also track their orders live on the Swiggy app. It provides city-restaurants with the tools and technology to reach new customers. In addition to driving order volumes through the platform, partner restaurants can strengthen their delivery services, brand equity and recall value by coming on to Swiggy.

Investments in the high-volume, low-margin segment rose over seven times in the first nine months of FY18 to Rs 20 billion, as niche players like BigBasket and Grofers were forced to fight with biggies like Amazon and Flipkart, apart from brick-n-mortar players like D-Mart, and Reliance Retail sharpening focus. Meanwhile, noting that online customer base remains largely concentrated in major cities, the report said faster growth will slow down in these regions as it is already highly penetrated and players would need to move into small towns to sustain growth.

he Great Place to Work Institute, India (GPWI) and Retailers Association of India (RAI) in a joint study called Great Places to Work 2018 have listed Cash and Carry firm Walmart India, Metro Cash & Carry and fast food major McDonald’s amongst the top ten retail companies in India to work for in 2018. For the sixth year in a row, RAI and GPWI came together to study the workplace trends in the retail

This report by ‘Great Place to Work’ is a humble way of recognizing practices that help to attract, retaining and developing talent in the industry. There is a lot one can learn about a strategic approach to people management from some of the best practices mentioned in the report. The report is a good eye-opener for every CEO. The Great Place to Work report looks at differentiating factors of these 10 workplaces that make them stand out among their peers and brings out some key people practices and principles that are a part of the winning philosophy of these companies. The report also looks at workplace culture through various demographic filters like years of operation, employee strength and being an Indian company or an MNC.

Truefarm Foods gets online platform for products

ith several companies opting to make use of digital space for greater market presence, Truefarm Foods - organic food company based on nutrition science has taken the right move in this regard promoting Digital India. The company has launched its products on Amazon India. To make India healthy, Truefarm offers a wide range of products such as pulses, superfoods, spices and nuts, breakfast cereals, flours and sweeteners. They intend to replace food items in daily diet with healthier, chemical free, nutritious and delicious organic alternatives. Truefarm aims to provide 100 per cent nutrition with cent per cent organic source through its products. Truefarm products are priced from Rs 45 to Rs 850. It is encouraging consumers to eat healthy organic food and helping them meet their nutrition goals without the use of chemical supplements. Besides, Truefarm helps farmers adopt sustainable

agriculture that enriches the soil and also helps farmers get better commercial value for their crop. Founder of Truefarm Foods, Ravi Jakhar said, “We are excited about our product launch on Amazon. It is a wonderful platform that makes it convenient for consumers to buy products with in depth research and allows us to communicate with our consumers about our innovative nutrition science based organic food products.”

Vol. 10, Issue 10 -March- 2018

NEWS

TOP CULINARY TRENDS FOR 2018 Ms. Priyanka Shinde, Assistant Manager- Technical Services, AAK Kamani Private Limited

t is said, ‘engaging with food is an art of engaging with the world’. For centuries now, food has created a common bond between people, nations and generations, as it highlights culture and tradition. Over the years, food has evolved in several ways to represent popular flavours and trends. Today’s consumer is extremely health-conscious. This has compelled restaurants and food companies to take a note and provide them with experiences that cater to their needs. Ancient health and wellness beliefs are being brought back for inspiration, and chefs and consumers are looking to rediscover traditional cooking methods. Over the last year, we’ve seen a wide range of food and drink trends reflecting changing attitudes towards health, community and the environment. 2017 has seen a brunch boom, Buddha bowls and the unmistaken avocado craze. The food industry has so much to offer that we can spend a lifetime trying it all and still have missed out on a lot. From buffets to food and wine pairings, bento boxes and the rise of the cool quotient of street food and its fusion, just about everything is in demand. 2018

though, will see the rise of vegetarian and vegan cuisine. Vegetarian menus will go beyond paneer and mushroom dishes. Another interesting trend is the rise of ‘no-waste cooking’ which is done using ingredients which one would usually throw away, like broccoli leaves, cauliflower stems, etc. Besides this, 2018 will also be known for the following: Portuguese flavours: Portuguese flavours, which are a unique blend of Mediterranean flavours along with spices will see a magnificent rise. The cuisine has been gaining popularity across the country and will see a number of new restaurants offering it on their menus. Healthy cooking oils: Groundnut oil is a healthy alternative used in cooking. It is rich in unsaturated fats, and has natural antioxidant content. Groundnut oil has a slightly nutty flavour and natural richness, adding depth to many cooked dishes. Keeping in mind, increasing health conscious nature of the customer, groundnut oil will be popular this year.

Home chefs: Home chefs tying up with restaurants to promote local, lesser known cuisines will be popular in 2018. Diners have been increasingly demanding authentic local dishes with hyper local flavours, and partnering with home chefs will take care of this. Return to the classical style of cooking: Culinary experts have been predicting that people all over the world will want to return to classical styles of cooking and preparing food. The return of cast iron equipment, firewood for ovens, natural fermentation processes and others will be popular. This will also help enhance the taste of dishes. Millets for the masses: This year the millet will shine, thanks to efforts from farmers and the Government of Karnataka. South Indian dishes made with millets will rule the roost and is set to change the food landscape. Vegan-ism: Although vegetarian food has been popular in India for centuries, vegan diets are gaining popularity in recent times. Vegan food,

gut friendly dishes, super seeds like chia and flax are all becoming popular and will definitely trend this year. Regional food high: This is the year for regional Indian restaurants to emerge. We will see a lot more food from Kerala, Tamil Nadu and possibly, Kashmir on menus. The use of local ingredients and regional food will only get stronger in the 2018, and will take on different forms. People are now trying lesser known dishes from South and North East India, a good sign for regional cuisine this year. Exciting and innovative desserts: Globally, the unicorn has been the most popular choice for themed desserts including frappuccinos, cakes, cookies, macaroons and more. Naked cakes with floral decorations will also be big this year. In Mumbai, freakshakes and galaxy cakes continue to be popular. Ingredients like sea salt and salted caramel are predicted to be popular with chefs this year. The avocado toast craze: The popular dish from 2017 will live on this year as well. The avocado dishes will not be mainstream though. It is being said that restaurants will work on developing new fusion dishes for avocado lovers. Trends in the food industry are constantly changing to keep up with customer’s demands. These trends not only help understand people’s preferences in food but also cause a massive change on how the eating habits evolve. As manufacturers of cooking products, these are trends we are constantly keeping an eye on and are adapting our products to suit the requirements of our consumers. We believe that by doing this, we are able to enhance the taste of food cooked using our products and improve dining experiences.

Linde’s first food lab opened at Mangalagiri, Andra Pradesh

ndustries Minister N. Amaranatha Reddy of Andra Pradesh inaugurated Linde – India’s first food laboratory and training centre at Mangalagiri in Guntur district. Mr. Reddy stated that latest food processing technologies were important for Andhra Pradesh as it looked to tap the full potential of the agricultural and horticultural produce. Food processing is set to make a substantial contribution to the Gross State Domestic Product (GSDP), and it was given due priority by the government to curb the huge losses being incurred by the farmers because of the huge wastage of their crops before they hit the markets. Linde Gases South Asia Head Moloy Banerjee said the lab would help the Indian food processing industry in capitalising on its food preservation technologies that facilitate earning of higher returns by the farmers. The reason for setting up the facility at Mangalagiri was its advantageous location, both geographical and in terms of the presence of a large number of firms involved in the food processing sector. Banerjee said Linde was a global leader in cryogenic freezing and chilling technologies for the food industry, and that the lab would demonstrate Linde’s Cryoline range of freezers and offer related solutions to the local farmers and exporters.

Vol. 10, Issue 10 -March- 2018

FOOD INGREDIENT NEWS

Likely export of raw sugar from Farmers, exporters should market their products with GI labels India to Indonesia

ith the ease-of-doing business in the country and smooth trade relations that India has with the global countries, Indonesia, the world’s second-largest sugar importer seeks to buy raw sugar from India, where a bumper cane crop has raised fears of surplus of the sweetener.India is also keen to export a bigger quantity, preferably through barter trade. A delegation from Indonesian Sugar Association met representatives of the Indian sugar industry in New Delhi recently. Managing Director of National Federation of Co-operative Sugar Factories, Prakash Naiknavare said “As India will have excess sugar production next year, Indonesian industry is keen to import sugar from India. 2018-19 will be the year of highest-ever sugarcane and sugar availability for India. The ratoon crop that will be harvested in 2018-19 is growing very well in Maharashtra, Karnataka, etc.” Meanwhile, the Indian sugar industry has already started creating strategic moves over various policy measures that would be required to manage the excess production, and exports is one of the measures being considered. Naiknavare added”As India imports most of its edible oil from Indonesia, the industry is keen to do barter trade of the

sweetener in exchange for oil.We are exploring the possibility of barter trade with Indonesia.” Managing Director of Global Canesugar Services, GSC Rao said “As quality of Indian raw sugar is best in the world in terms of many technical parameters, we can export substantial quantities.” The domestic sugar industry has already demanded removal of the 20 per cent export duty on sugar. It is also concerned over recent reports that 2,000 tonnes of sugar have landed in the country from Pakistan via the land route. Indonesia being close in distance to India as compared with Brazil, is expected to reduce cost of imports for the country. According to the International Sugar Organisation (ISO), cost of importing raw sugar has increased by 2 per cent for Indonesia.

pices Board Chairman A. Jayathilak recommended farmers and exporters to market their products with a unique selling proposition in the global market by striving for geographical indication (GI) labels for their quality spices. Observing that marketing of spices is a major issue as compared to production. Jayathilak was at the Spices Board’s Buyer-Seller Meet (BSM) conducted on the sidelines of the five-day Global Kokan Festival 2018. A potential business transaction of 600 tonne of spices valued at Rs 7 crore was carried out at the BSM. About 50 exporters and over 160 farmers attended the meet. He added that “In international marketing, we need to distinguish the product with a special niche; something that makes the product stands out from the rest of the products in the market place. We must look at the geographical indication as one of the tools to promote our products in the global market. For example in best supermarkets of the world, you will find labels like Thalassery pepper

FLAVOR

or Malabar pepper specifically. This is because they realise that a high premium has to be paid for a geographically-indicated product.” Jayathilak is of the view that exporters should export specifying the GI because over the years they can ensure that a niche has been developed for India’s brand in terms of having specialised niche products. Over the years, production has been grown up but marketing is an issue. “Every farmer is telling us they need good price. The whole world is your market place and the whole world can be your buyer. That is possible only if we bring buyers from all across the country and enable you to talk with the farmers.” Spices Board is looking at the Konkan area specifically. A special team has prepared a report on how to develop the spices and exports from this area. The report has been submitted to the government for funding. The only commodity in which India has 50 per cent of the world trade is spices, he said.

NOMICS

Spices Board conducts eauction of small cardamom

ismissing rumours about e-auction facility being shifted to Tamil Nadu, Chairman of Spices Board, Dr A Jayatilak said the Board held e-auction of small cardamom at Puttady Spice Park in Idukki district, where the operations were temporarily suspended for technical maintenance and upgrades. Though the maintenance work is yet to be completed, one e-auction will be held every week at the Park till the maintenance work is completed. “Such rumours have literally left the small cardamom farmers in a state of confusion. And it is because of such false news doing rounds that we decided to conduct the e-auction every week.” He urged the farmers not to fall in such traps and ensured that the maintenance works and technical upgrades are progressing at a fast pace. Praising the decision of the Spices Board, Joyichan Kannamundam, President of Cardamom Growers Association, Vandanmedu, said that those spreading rumours that the e auction centre has been shifted to Tamil Nadu are purely led by vested interests.

Creamier Temptations Beyond Imagination Peacock offers sweet & creamy flavourings... enhancing taste & aroma

The Spices Board said it has conducted test trials with the help of its employees as well as students and ensured that the auction would be conducted in an error-free manner. At Puttady facility, the e-auctions were held through 70 terminals.

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Vol. 10, Issue 10 -March- 2018

FROZEN ATTACK

in the coming years. Further, frozen food manufacturing companies are changing their product dynamics and offering innovative frozen food products, as per consumer demands in India and all these factors are projected to boost frozen food sales in the country in the coming years. The Indian frozen food market is estimated to be around $110 million, and is projected to grow at a compounded annual growth rate (CAGR)of three per cent during the forecast period (i.e. until 2022). Cold chain importance in India for frozen market Currently, with more than 3,500 companies operating, it is highly fragmented and unorganized in nature. Organized players contribute 8-10 per cent of the cold chain supply base. There are 5,381 cold chain storages in India with 95 per cent of total storage capacity under private players. The development of cold chain industry has a significant role to play in reducing wastages of perishable commodities and thus providing remunerative prices to the growers.

Frozen foods segment, yet another giant waiting for assault in Indian food industry

lobal frozen food market is expected to garner $306 billion by 2020, projected to reach CAGR of 4.1 per cent during the forecast period 2015 - 2020. The deep-frozen food products can be stored and used over an extended period are referred to as frozen foods. The most widely used frozen food products include frozen ready-to-eat meals, fruits & vegetables, meat & poultry, sea food, soups, and similar array of products. The global frozen food market comprises retail as well as business customers. Retail customers are individuals and households mostly prefer cooked and semi-cooked ready-to-eat food, meat, and soups amongst the class of available products in the market. Whereas business customers include hotel chains, fast-food outlets, caterers, and other buyers use frozen meat, sea food, frozen pizza crust, bread, frozen dough, potatoes, and vegetables as the key ingredients for preparing food for end customers. Based on geography, Europe is the largest market, closely followed by North America. Frozen food market in India is expected to register a CAGR of 15 per cent during 2016-2021. In 2015, frozen food products market in India was dominated by frozen snacks segment. With increasing availability through online sales channels such as Amazon, Big Basket etc., frozen snacks will continue to dominate Indian frozen food market through 2021. McCain, Godrej Tyson, Venky’s, Darshan Foods, National Dairy Development Board (Mother Dairy), Al Kabeer Exports and Innovative foods are few of the leading players dominating India’s frozen food market. Major companies that operate in this market have adopted acquisition and new product development as their key business strategies to gain a competitive edge over the other players. Aryzta is one of the largest suppliers of frozen bakery in North America and Europe. Nestle is a leading player in frozen pizza segment in North America and Europe. McCain foods launched local food variants in India, developed specifically as per the traditional food habits of customers.

food

Current Scenario of frozen food Jasmine K Shaikh, Head-Food Innovation at Snackible said the increase in incomes coupled with change in lifestyle and habits are major factors that boost

the market growth in these regions. Also, a rapid increase in number of large retail chains including hypermarkets and supermarkets has bolstered the demand of frozen food in India. However, lack of proper refrigeration facility in retail stores and inadequate distribution facility in semi-urban and rural areas are the major challenges for the industry in developing markets. Proprietor of Six Sigma Food tech, Dilip Wagh said frozen foods are ubiquitous in North America, Europe supermarkets, and in other parts like Australia, Asia. “Fruits and vegetables are usually frozen within hours of being picked, and when thawed, they are very close to fresh in taste and texture. The frozen meal is increasingly popular in time−starved households. If the meal can be heated in a microwave, total time from freezer to table can be less than five minutes. Besides offering fresh taste and convenience, freezing is also a safe method of preservation, as most pathogens are inactivated at low temperatures. Increased consumption of fresh food as a means of ‘living healthy’ is our thinking which is very right.” Harveen Kaur, Partner of Her’s kitchen feels that awareness about frozen products has grown at least 5-fold in last five years. This has resulted in increased consumption and lower post-harvest losses of vegetables and fruits. Yet still we need to

increase the reach till C grade and D grade towns in the country which till now are untouched by the concept of frozen foods. “Some people are still ignorant about frozen snacks and samosa though frozen green peas have reached all the areas. In cities, the disposable income has scaled up and availability of such readyto-cook products on shelves has induced the need to buy these products. The individuals buy them as they can keep them in their deep freezers for a longer period.” Another section of market is food restaurants, hotel chains and the rest always look for convenience and lowest service times for their customers. Also, they try to find out ways to keep consistent tastes of their served portions. The frozen food has given them an edge over the traditional restaurants. Indian market has always been a leading market in the world when it comes to production, consumption, export, and growth of a food industry, and as the innovations are taking place in every possible industry, food industry is not left apart from that trend and there comes a concept of “frozen food”, in European market frozen food has already been into deep roots but in Indian it is still an emerging market. M.D, Vishal Vora from Freeze it said India is a country that has diversified culture, income, and taste of the product so, in some of the cities frozen food products might be a great hit while in some it is not. But overall substantial number of consumer are from urban areas while in some small cities it is still unknown concept.

Director of Crazy Foods, Rohit Choudhary is of the view that frozen food is rapidly gaining popularity in India. Rising urbanization, changing lifestyles, and increasing expenditure on frozen food is projected to drive sales of frozen food products

Shaikh expressed that cold chains are essential for extending the shelf life, marketing, avoiding over capacity, reduce transport bottlenecks during peak period of production and maintenance of quality of produce. “With the growth on domestic manufacturing and retail segments, demand for efficient warehouse management service has improved. Despite of the growing demand, warehousing continues to see little investment. Current expenditure on organized warehousing in India constitutes 9 per cent of total logistics expenses, as against 25 per cent in the US.” Even though India has about 250 reefer transport operators (mostly small & non-integrated firms) that transport perishable products and more than 30,000 refrigerated vehicles currently ply in India. The inflated cost of transportation is a major challenge for refrigerated vehicles market. Wagh emphasised that it is very important to maintain frozen cold chain. All further distribution of the frozen food should be carried out at 0˚ F (− 17.8˚ C) or cooler. In other words, trucks or rail cars that carry the pallets should be kept to this temperature, and so should warehouses, storerooms, and freezer cases where the cases are later stored. Product needs to maintain temperature throughout logistics till it reaches individual. Wagh said “our government is supporting cold chain in big way to increase cold store, refrigerated vehicles. Awareness drive in public is required FROZEN IS NATURE PAUSE BUTTON + FROZEN IS FRESHER THAN FRESH. Frozen food maintains Aroma, Taste, Texture & Appearance. Even good educated people in India do not understand the importance of frozen food. Govt. should take steps to educate school-going children from school about importance of good cold chain system for the industry. Another Partner at Her’s kitchen, Simran Kaur believes Indian climatic conditions pose a serious threat to the quality of the products in ambient conditions. The changing climate is the danger for the food product portation to distant consumers.

trans-

This has led to the major disaster in the form of post-harvest losses of country’s food products. To avoid this cold chain is very important. “Also, since we are now focusing on utilizing the crops in a better way, we also need the cold chain to make these processed products reach populace in distant parts of the nation is where comes the role of cold chain.” Vora stated that it is tough since every dealer associated needs to have a cold room facility. They

Vol. 10, Issue 10 -March- 2018

FROZEN ATTACK

Challenges in frozen food market Every industry has their challenges which acts like a hindrance for its successful growth. These issues need attention so that there lies no obstacle for steady progress of the market. Shaikh notes the following points that are challenges in the frozen food industry, i) Consumer education that processed foods can be more nutritious ii) Low price-elasticity for processed food products iii) Need for distribution network and cold chain iv) Backward-forward integration from farm to consumers v) Development of marketing channels vi) Development of linkages between industry, government, and institutions vii) Taxation in line with other nations viii) Streamlining of food laws

need to have a proper cold storage vehicle to reach it to their wholesaler or retailer. Now this increases their initial investment that leads to hesitation. So, this happens at every level whether its wholesaler, retailer or consumer which is not in the case of normal food products, hence this problem leads to slow expansion. Growth factors Wagh attributed the need for convenience as major factor because sufficient wealth pushes convenience as a priority. Also, the perception of quality boom in ethnic meals, and with women often being out of the kitchen has broadened the base of frozen foods. To feed a world population projected to exceed 9 billion people by 2050, technology that can enhance food production will be a significant asset. This will help wastage of food. Increased food prices around the world in recent years, social unrest over food scarcity combined with a growing world population are raising the question what will it take to feed the world’s population 40 years from now. As per Shaikh, the following points below are key factors for the growth in frozen food industry: • Increase in Purchasing power • Changing lifestyle & food habits • Rise in number of working women • Research & operational excellence • Growing Health & fitness concern • Government regulations • Storage & transport facility opportunities • Rapidly growing food service industry • Improved storage facility in retail stores • Rapidly growing large retail • Transition in consumer demand Harveen believes that the reach of products has played a significant role in the growth rate of frozen foods. “Now people are aware and have money to buy the products. It’s the

may be added to the top. If the dish is stored in a freezer truck or cold storage, the air will be able to pass through to the food, keeping it cooler for longer periods of time. Even Wagh articulated about cryogenic freezing, which is a relatively new freezing method that may be gaining adherents. As not all foods benefit from being frozen this way, some equipment manufacturers are designing multiple−use machines that combine freezing methods. As of now, cryogenic

The global frozen foods market continues to expand even in the wake of adverse economic conditions, driven by consumer desire for convenient and easy-to-cook foods. Further, the advent of innovative products and packaging, and growing health consciousness of consumers are also contributing to increased consumption of a wide variety of frozen foods. Wagh feels that the market has managed to overcome the recession owing to the increased demand for healthy and convenient products. The advent of new freezing technologies is allowing manufacturers to preserve nutritional content in fruits and vegetables for longer times. The industry’s biggest push was so−called home meal replacement that is, whole frozen meals that took the place of cooking from scratch. More consumers were willing to trade the convenience of a frozen meal for the satisfaction of making their own dinner from fresh foods. This meant that the industry was challenged to come up with more elaborate frozen dishes that required more testing and experimentation to pull off than the relatively simple frozen vegetables or breads.

freezing solution is very expensive way to freeze hence less takers. “The freezing equipment is typically made from stainless steel and other metals. To freeze produce in lowest time is industry goal with lowest process cost. Freezer manufacturer are enhancing their product to meet this challenge. Conventional old type slow freezing is history. All good manufacturer designs are fully hygienic & faster freezing. North American has really come up with biggest equipment in market. Some North American companies prefer CO2 freezing.”

matter of availability of delicious and healthy foods. The cold chain distribution is also another major factor for this growth. If that is set right and well, the game can be won.” Vora splits the growth factors for two markets retail and institutional.

Simran feels that advancements taken place are great and still there are many more to come in near future. “Did we ever think that green peas which were only produced for three months of the year in North India will be eaten at the same price round the year and that too of same quality? Did we ever think that Gujarat potato growers will get a chance to sell their potatoes to a company who buys in bulk to make French Fries? The company processes almost 20 MT of potatoes per hour in their premises in Mehsana and feeds the nation with French Fries.

Retail Market: a) Increase in migration of people from semi-urban and rural areas to developed metropolitan cities b) Increase preference of nuclear families c) Increase number of working woman. Whereas for Institutional Market: a) Reduction in food waste b) Reduction in time c) Reduction in staff

These are technological advancements and we have learnt the processes to prevent our crops from getting dumped because of low demands. The ready-to-cook frozen food concept has led to preservation of lot of fruits and vegetables that were earlier thrown. The sea fishes are available in northern plains only because of the cold chain.”

Technological advancements Cryogenic or flash freezing food is a recent development, but is used by many leading food manufacturers all over the world. Shaikh said, “Cryogenic equipment uses very low temperature gases usually liquid nitrogen or solid carbon dioxide which are applied directly to the food product.” Active Packaging - Food product films which allow oxygen to pass through is one form of active packaging. For instance, when a microwavable food dish is frozen, an oxygen-permeable film

Vora said production capacity is increasing at far level due to advancement in various manufacturing machineries. The research is carried out daily as to how we can increase the shelf life of the

Harveen Kaur,

Wagh said that the cost of operation has become extortionate in world. “Finding innovation in frozen food category is required for ethnic food. There is a need to develop local market & create awareness in country. Many wrong processor are in market that damages good processor market prospects both locally & internationally. Government certification should be more stringent.” India is second largest producer of fruit & vegetables but the surplus produce requires infrastructure support which is not available. India with large marketable surpluses and abundant raw material for processing needs processor & logistics.

The global frozen food market is anticipated to touch a CAGR of around 4 per cent during the forecast period of 2016- 2024. Shaikh explained that factors that have fuelled this growth are dynamic lifestyle, urbanization, changing food habits, increasing disposable income, increase interest in international foods, increase in number of nuclear families and easy availability of products due to rise in number of retail chains. “The product segment covers various frozen food categories such as frozen ready meals, fish/seafood, potatoes, fruits and vegetables and soup. Frozen ready meal segment includes wide range of products such as frozen pizza, desserts, entrees, and snacks etc. Frozen vegetables and fruits are considered the product for next generation due to advancement in freezing technologies that provide products with an extended shelf life, therefore it is expected to increase its market share by 2019.

Vishal Vora

product and satisfactory results can be seen. Packaging is getting better which leads to lower normal loss in transit, so with every day there is progress.

Harveen said that major challenge is distribution since the road transport is costly and there is no source of train transport for such products. Also, the cost of freezing is high because of interruptions in power supply. “The capital cost of plant and machinery is high for excellent quality machines as Indian manufacturers do not produce standard machines. If plants are installed, their viability is another issue as they don’t get good volume supply of raw material due to vast population which consumes mainly fresh. Lack of government support to the entrepreneurs on the ground is another issue. There are lot of schemes but not even one is properly implemented and hence young entrepreneurs do not get support and motivation to revolutionize the concept.

Food scientists are still working out the chemistry and physics of frozen foods, studying for example the relationship between low−molecular weight sugars and high−molecular weight stabilizers in a recipe to predict what foods will freeze well. Frozen food preservation method is growing & will grow more than other preservation method. India is emerging as Kitchen and Food basket to the world. An opportunity to freeze surplus produce with adequate requiring infrastructure support and practices. Cost of operation becoming prohibitive in EU and US, causing a shift to South East Asia− India. The market is still increasing and will further get interesting as the awareness is increased by the multinationals like McCain, Godrej, Sumeru, Al Kabeer regarding frozen foods. Lastly, Simran added that the smaller players are trying to bring innovation and something new in the market. The companies are giving their best to fight on quality, taste and price of the products. This further gives options to the customers to better judge and choose. Also, most of Indian population is young and accepting. They have accepted the frozen foods as the part of their daily diets in various cities; further expanding the market of such products. Vora concludes that the frozen food market has immense potential in India.

Vora is of the view that one of the biggest challenges right now is logistic to the end consumer. “We are receiving demand from all over India but making it available to everyone seems hard. Rohit Choudhary

Frozen food market might be influenced by competition, pricing, lack of innovation. Future market of frozen foods

The number of nuclear families and working woman is increasing day by day that ultimately leads to use the product which is easy to cook, requires less time, and Frozen Food is such a product. So, what I see in the future is one large deep fridge in every home, which is full of breakfast, lunch, and dinner, one just need to take the product out, fry or heat it and eat.

Vol. 10, Issue 10 -March- 2018

TEA & COFFEE NEWS

India competes with China for title of world’s biggest packaged tea market

hile the story of tea begins in China, latest research from global market intelligence agency Mintel reveals that India currently vies with China as world’s biggest packaged tea market. In 2017, India consumed a total retail volume of 678,200 tonnes worth of packaged tea, followed by China in second place at 576,800 tonnes. Meanwhile, Turkey (173,400 tonnes), Russia (134,200 tonnes) and Japan (92,900 tonnes) complete the top five global ranking. While India is the leading market for retail volume sales globally, Turkey takes the lead when it comes to per capita consumption. Behind Turkey, European countries feature strongly in the global per capita consumption ranking: the average Turkish consumer guzzled 2.15kg of packaged tea last year, followed by British consumers at 1.15kg, Russian consumers at 0.91kg, Japanese consumers at 0.74kg, and German consumers at 0.67kg. Associate Director, Food and Drink at Mintel, Loris Li said, “Traditionally, Chinese consumers prefer fresh tea in loose formats, so it makes sense that our research shows that India is ahead of China as the world’s leading retail packaged tea market.” Indeed, Mintel research reveals that in 2017, most Chinese consumers (78 per cent) were frequent users of freshly brewed loose tea. Ready-to-drink (RTD) tea drinks also enjoy high penetration in China, with half (49 per cent) of Chinese consumers identified as frequent RTD tea drinkers. Tea bags, on the other hand, are frequently enjoyed by 45 per cent of these Chinese respondents. Global Food & Drink Analyst at Mintel, Julia Buech commented“Looking beyond top level market sizes and consumption figures, there is an interesting new tea culture brewing in both hot and ready-to-drink tea, fuelling global and regional innovation activity.” According to Mintel Global New Products Database (GNPD), hot tea launches in Asia Pacific accounted for 27 per cent of all global new tea product launches in 2017, while RTD tea launches in Asia Pacific accounted for 13 per cent of these global tea launches. Hot tea introductions in Europe accounted for 30 per cent of world’s new tea launches in 2017 while European RTD tea launches represent 7 per cent of these launches. Meanwhile, North American hot tea launches accounted for 4 per cent of the global pie of overall tea launches, while RTD tea launches take up 3 per cent of this share. “Although hot tea continues to be the biggest tea subcategory globally, RTD tea has started to build its base in the global tea market—following the same developments seen in the global coffee market. The RTD tea landscape is changing dramatically; having suffered for years

from a ‘cheap’ and unhealthy image, the category is now undergoing a lifestyle makeover. Artisanal production attributes, such as cold brew, are helping create a new premium tier in the segment. Our research shows that cold brew is just emerging as an upscale taste and quality descriptor in RTD tea. Better-for-you innovations from major beverage companies are further boosting the development of the RTD tea category,” continued Buech. 84 per cent of all new tea launches in North America during this period were tea bags. In Europe, tea bags accounted for 75 per cent of all new regional tea launches in 2017, and 45 per cent in Asia Pacific.What’s more, Mintel research confirms that Asia Pacific is currently driving loose formats in packaged hot tea innovation. Of all new tea launches in Asia Pacific in 2017, loose tea formats accounted for 36 per cent, compared to 19% in Europe and 12% in North America. “Most Asian consumers are, at the end of day, traditionally inclined to enjoy tea in loose formats—which is also likely the reason behind Asia Pacific’s lead in driving loose formats in packaged tea innovation. However, the tea bag category in China, and the wider Asia Pacific region, has definite growth potential as we see more and more tea bag innovations coming from Asian tea manufacturers,” added Li. Mintel GNPD shows that in 2017, teas described as ‘energy-boosting’ accounted for 11per cent of all functional tea introductions globally, up from 9 per cent in 2015. It seems boosting the emphasis on energy can help tea compete with coffee, especially for morning occasions. Mintel reveals that 62 per cent of US adults drink coffee in the morning, while 24 per cent drink tea. In China, the door is open for tea to adopt an ‘energy drink’ status; as many as two in three (65 per cent) drink RTD tea when doing outdoor sports (e.g. jogging, playing football, cycling) while 58 per cent drink RTD tea when doing exercise at gym or sports centres. In the UK, over one in five (22per cent) consumers is interested in seeing ‘energy-boosting’ as a health or functional benefit provided by tea. “In a world that is becoming more health conscious, naturally functional drinks are ever more relevant. Tea consumers continue to show interest in products that can target specific ailments and provide diverse functions, from energy-boosting and anti-inflammatory to slimming and relaxing benefits. In this saturated field, ‘energy’ has grown in significance as a focus of innovation activity among tea companies and will continue to be a market with potential in the near future,” Buech concludes.

Tea exports in India touch record high in 2017 million kilograms. As compared to 2016, exports in the following year were 8.20 per cent higher by 18.23 million kilograms. Tea Board said the value of exports was Rs 4731.66 crore, which was an increase of 5.90 per cent over the previous year.

s per information from the Tea Board, India’s tea exports have touched a record high in 36 years at 240.7 million kilograms (mkg) during 2017. The previous record was in 1981 when exports had reached 241.25

Exports from north India touched 148.41 million kilograms, while that from south India was 92.27 million kilograms. Countries where significant exports took place were Egypt (6.16 mkg higher), Iran (4.15 mkg more), China (2.80 mkg higher), followed by UAE and Sri Lanka. In terms of dollar, the value of exports in 2017 was USD 726.76, an increase of 9.26 per cent over the previous year.

Cafe Coffee Day has launched new dessert menu ‘Dessert Delights’

opular coffee chain Cafe Coffee Day (CCD) is certainly celebrating all things sweet and indulgent with not just expansion of its dessert menu but by becoming an alltime, favourite neighborhood dessert station. CCD is one of the most easily accessible cafes in metros, now with some desserts as its offering fulfilling the much needed sweet cravings. Consumers can find a gamut of flavours to choose, right from the classic pineapple or classic black forest, a heavenly cake or a mouth-watering slice. CEO of Café Coffee Day Venu Madhav said, “By extending our dessert menu, Cafe Coffee Day is offering consumers and sweet cravers an all new reason to visit their neighbourhood café, all the time, anytime. Dessert lovers no longer have to hunt far and wide to satisfy their sweet cravings since they can always find a Café Coffee Day next door. In the all new Dessert Delights selection, we have tried to accommodate everyone’s taste buds by churning up some forever loved sweet delicacies. The new menu covers all moods and sizes, from variety, to signature, to classic, with full round cake options and single serve dessert options in trending flavours. Using high quality ingredients, we aim to provide an unforgettable experience with the finest of flavours in desserts to all our customers at very competitive prices”. Cafe Coffee Day has some tasty sweet treats with its Dessert Delight menu. To begin with, there is

dribble worthy ‘Raspberry Cocoa Dome’, a signature dessert created with a flawless cocoa dome and a raspberry soul. ‘Cocoa Fantasy Slice’ is an alluring slice of wonderful cocoa cake with cream, and dark vermicelli sprinkles. One can even indulge into the delicious pineapple glaze with irresistible ‘Pineapple Delight Slice’. Among other tempting sweet treats is ‘Fruit Trifle Cup’ - dessert in a cup to leave you enthralled with its delightful layers of custard and fruit. Mouth melting brownie defines thickness with a fudgy centre and a light crust with the ‘Crackling Brownie’. The tender ‘Cocoa Éclair’ is a delicious French dessert will mesmerize taste buds with its perfect pastry and cocoa cream filling. ‘Mocha Butterscotch Cup’ is an exquisite blend of toffee and coffee in a cup with toasted hazelnuts. ‘Black Forest Cake’ is a tempting German cake with red cherry and cocoa frosting layers, topped with cherry glaze and fruit bits. ‘Cocoa Fantasy Cake’ is an incredibly yummy cocoa cake with layers of dark ganache. A soft and succulent pineapple sponge with creamy frosting and glaze of pineapple bits has been brought together in the classic ‘Pineapple Delight Cake’. Each item has a unique and creative touch, reasonably priced that begins from Rs 55. Dessert Delights menu is available at Café Coffee Day stores across Mumbai, Delhi-NCR, Kolkata, Chennai, Hyderabad and Bengaluru.

Buhler builds world’s first ultra-low-emission coffee processing plant

uhler is building the world’s most advanced coffee processing plant for Norwegian coffee producer Joh. Johannson. It combines innovative roasting technology with record low greenhouse gas emissions. The coffee roasting biogas is close to carbon neutral, making the processing plant with the lowest emissions globally possible. “With Buhler, we have found a solution partner that fully understands our sustainability concerns and is capable of putting them to practice,” said Espen Gjerde, CEO of Joh. Johannson. “Together with our customer Johannson, we are setting a new eco-standard in the field of coffee production,” said Stefan Schenker, Head of the Buhler Business Unit Coffee Processing. Coffee continues to be a growth market with growth rates of about 3 per cent worldwide. After the considerable efforts of processors to achieve sustainable sourcing of green coffee, the focus is now being increasingly set on the manufacturing process in the coffee factory. This is because this process consumes a lot of energy: A factory with an annual processing capacity of 10,000 tonnes consumes roughly 870 kW – about as much as 100 Norwegian households. Now Norwegian coffee producer Joh. Johannson has teamed up with Buhler to reverse the trend. In June 2017, Buhler was awarded the contract for building the world’s most efficient climate and environmental friendly coffee processing plant. For this low-carbon production plant, Buhler will supply the complete process technology – from green coffee intake to cleaning, blending, roasting, and grinding. For the roasting process, Buhler has fitted its Infinity Roaster with a unique preheating unit and a novel energy recovery system. The system operates on the basis of collecting heat by multiple heat exchangers allowing centralized intermediate storage of the energy released by the process in temperature-stratified water tanks. The energy stored is largely used for powering the same roasting process and preheating of green coffee, but may also be reused – say – for raising the temperature of the incoming cold air. Some of

the energy will also be used to heat the offices and laboratories. This technology reduces the energy consumption of the roasting process by 50 per cent which accounts for as much as 80 per cent of the entire energy consumption. The total balance of electric power required by the factory is covered by huge solar cells. Moreover, the planned facility will boast one of the most advanced off-gas purification units for roasting systems: Regenerative thermal oxidation (RTO) allows smart control of the air currents, which in turn enables heat to be stored and returned to the process. The entire plant is operated by a highly complex, smart, and automated process control system, which measures the product temperature inside the roasting chamber at intervals of a second and fine-tunes the process in the presence of even the slightest changes. This produces maximum profile accuracy, which has a direct impact on the quality consistency of the coffee’s taste and on flexibility. Despite all the company’s sustainability requirements, there is never any compromise for Joh. Johannson when it comes to top quality and the unmistakable taste experience for consumers. With this new processing plant, the company clearly aims to achieve an uncontested market position: “This project stands to boost our competitiveness in the marketplace. The system’s energy consumption, slashed to the absolute minimum, is not only extremely sustainable, but also makes sound business sense. In the processing industries, energy accounts for as much as 10 per cent of the total cost. We are now the world’s sole producer that can offer its customers top-quality coffee that has been produced as environmental- and climate-friendly as possible, with excellent taste,” says Espen Gjerde, CEO of Joh. Johannson. The plant, which is to produce up to 12,000 tonnes of coffee annually, is scheduled to go on stream in mid-201.

Vol. 10, Issue 10 -March- 2018

POULTRY/ SEAFOOD NEWS

CSE reveals rampant use of antibiotic in poultry sector

he Centre for Science and Environment (CSE) slammed the All India Poultry Development and Services Private Limited for its advertisement and said it is ‘complete misrepresentation’. The particular advertisement highlighted that no antibiotics are used in chicken as an eye wash and alleged that the use of antibiotics in poultry sector is ‘rampant’. The advertisement refers to the results of a 2014 study conducted by the CSE on chicken, it said while strongly rejecting the way the study results have been twisted to suggest that there is no misuse of antibiotics in the poultry sector and that the chicken produced is safe. “This is complete misrepresentation of the facts and the antibiotic misuse practices adopted by the Indian poultry industry.” Deputy Director General, CSE, Chandra Bhushan, said “They are even using life-saving drugs like colistin to fatten the chicken. There seem to be no genuine attempt by the industry to reduce antibiotic misuse and this advertisement is eyewash. They are misguiding the nation and trying to dilute their contribution to the problem of antibiotic resistance. This will not help the industry in the longterm. They must act responsibly.” The industry has ignored the results of its latest 2017 study, which show how poultry farms are breeding grounds of superbugs The advertisement which said that chicken should be eaten as it has a lot of benefits, also went on to say that the Indian poultry industry has already adopted usage of prebiotics, probiotics, phytogenic additives, acidifiers and immuno stimulants as an alternative to antibiotics.

Regarding the issue of maximum residue limits (MRLs) in the advertisement, Amit Khurana, a senior programme manager, Food Safety and Toxins team, CSE said that it is a “prejudiced” view as residue level in food is only one part of the problem. “Resistant bacteria can also get transferred to handlers and consumers. Unabsorbed antibiotics as well as resistant bacteria in chicken droppings which enter into the environment are a big concern. The problem starts with antibiotic misuse.” Bhushan further added that India does not have any standards on residue levels in chicken meat. “Comparing residue results with the MRL of the European Union is meaningless. Our study was aimed at establishing the fact that banned, critical and highly prescribed antibiotics are being misused by the poultry industry we did not make any comparisons with MRL as India does not have an MRL of its own.

The study report stated that “cold-chain industry can witness an annual growth of 13-15 per cent in the five fiscals through 2022, compared with 11-13 per cent in the previous five.” This will swell the industry to Rs 47,200 crore in fiscal 2022 from Rs 24,800 crore in fiscal 2017. In the meat segment, growth would be led by buffalo meat, which has the largest share of exports at 45 per cent. While in seafood segment, growth would be led by shrimps, which contributed 38 per cent in volume and 65 per cent in value terms to total seafood exports in 2016-17.On its part, the bio-pharmaceuticals segment is heavily dependent on cold chains. This is particularly so because stringent US FDA regulations necessitate those products such as vaccines, serums, and blood plasma be monitored critically. Biopharma exports are expected to grow by 18-20 per cent in value terms between 2017 and 2022 lifting share of exports in the segment to 55 from 45 per cent in FY17.Significant demand is also seen coming from fruits and vegetables, particularly the exotic varieties, which fetch higher margins. As per the Agricultural and Processed Food Products Export Development Authority (APEDA), the

the import restrictions were unscientific and should be removed.

ith the changes in the health certification requirement for imported poultry items way of import of cheap chicken legs and other poultry items from the US into India is now open. “The Department for Animal Husbandry and Fisheries has resolved the health certification issue for poultry with the USFDA. The US poultry industry could start exporting to India soon. Hopefully, Washington will now consider the WTO dispute to be over,” a government official said.

The Food Safety and Standards Authority of India is yet to come up with final standards of antibiotic residues in chicken. We have a National Action Plan on AMR now, but unfortunately there are no funds allocated for it. The plan would have no real functionality without money put behind it,”

The latest changes made in the health certification requirement could now lead to the Indian poultry industry’s worst fear come true that of facing the stiff challenge of competing with cheap chicken legs from the US.

CSE researchers believe that even after years of the issue being highlighted, the government response to address the antibiotic resistance crisis has been inadequate so far.

According to industry estimates, the US could potentially take away 40 per cent of the market of domestic breeders, who produce 3.5 million tonnes of chicken annually.

There is no legal ban on use of antibiotic growth promoters in poultry. The 2014 advisory from the Department of Animal Husbandry, Dairying and Fisheries has no legal binding.

The US had challenged the stringent restrictions on imports of poultry that India had in place on poultry imports, ostensibly to check the spread of avian influenza or bird flu, at the WTO. In 2015, New Delhi lost the case and the WTO ruled that

Cold chain segment will grow by 11-13 pc in 5 years s per research company Crisil, the key segments like meat, seafood and bio-pharmaceuticals will be growth drivers for the cold chain industry estimated to go grow by 13-15 per cent in the next five years. These three segments cater mainly to the export markets, where organised players are preferred due to stringent quality requirements and regulations, it added.

India ready to import American chicken legs

While most players operate in multiple segments for better margins and diversification, a few target only the pharmaceutical and biopharmaceutical segments where margins are higher as quality has to be maintained. Crisil Research Director Binaifer Jehani said that “Investment in cold chains and reefers suffers due to lack of first and last mile connectivity. Besides, stiff competition and low preference of end-user industries to transport via reefers (as it increases costs) restricts private players from investing in the segment. We believe greater adoption of the integrated cold chain model will help improve utilisation and draw investments.” Crisil Research Senior Director Prasad Koparkar said“This calls for investment in cold storages 50-150 km from the farm gates as well as meat production centres so that an efficient cold chain grid is built across India. Investments in temperature controlled vehicles, or reefers, would also be necessary.”

“The US wanted that the health certification requirement should be modified to recognise the disease control system in the country and their systems approach so that their industry could export without fear of rejection by Indian authorities,” the official said. Since minor modifications are done in health certifications to take care of country-specific requirement, the Animal Husbandry Department made the modifications sought by the USFDA. While the Commerce Ministry is concerned about the implications of the move on the domestic poultry industry, officials say that restrictions on imports, if any, have to be applied based strictly on OIE guidelines (globally accepted guidelines on health and sanitary requirements). The government, together with the poultry industry is examining issues such as the long-periods of deep-freezing of dressed chicken done in the US and the genetically modified feed given to the chicken to see if imports could be restricted on such genuine health concerns.

Quality control lab for marine products inaugurated in Odisha

share of fruits and vegetables in exports, among principal commodities, increased to 22 per cent in FY17 from 14 per cent in FY16. Also, between FY13 and FY17, exports of fruits and vegetables increased by 11-12 per cent in volume terms. Still, wastage in fruits and vegetables is high at 15-16 per cent as per the Central Institute of Post-Harvest Engineering and Technology, mainly because cold storages are located near consumption centres rather than farm gates. The report further said there is intense pressure on reefer rentals especially in sea food, meat, and ice cream, as a large number of unorganised players cater to the segment.

India then made two rounds of changes in its rules on health restrictions to comply to DSB’s ruling and take care of specific concerns raised by the US. The US, however, remained dissatisfied with the changes and sought damages.

ing facilities for tetracycline and sulphonamides, the lab will be fully ready for analysis of commercial samples meant for export to the EU also.

eeping in line with the norms laid down by European Union (EU), a state-of-theart quality control laboratory was inaugurated in Odisha to check traces of antibiotics in shrimps and other marine products. This lab will address concerns of USA, Japan for stringent quality controls over exports of seafood from India. The fifth-laboratory set up by the Marine Products Export Development Authority (MPEDA) is fully equipped to check presence of chloramphenicol and nitrofuran, the two banned antibiotics for which importers in US and Japan have particularly insisted for analysis. Accredited by National Accreditation Board for Testing and Calibration and approved by Export Inspection Council of India under Laboratory Approval Scheme (LAS), the laboratory has started analysing Chloramphenicol and Nitrofuran metabolites in samples drawn under the National Residue Control Programme (NRCP) and those drawn from the market, an official said. Alongside, the lab is developing facilities for validation of sulphonamides. After completion of test-

Currently, these substances are being tested at other QC laboratories of MPEDA.If any samples are screened positive in ELISA Labs at Bhubaneswar, Balasore and Sonarpur, these will be checked and confirmed at the quality control laboratory, which has developed methodology for another antibiotic, retracycline, and its validation is under process. Odisha’s Agriculture Production Commissioner Gagan Kumar Dhal said “by setting up its laboratory in Odisha, MPEDA has met a longstanding demand from the seafood exporters. Our seafood exporters have set global benchmarks. We must follow this benchmark which is going to lead the seafood sector in the next few decades.” MPEDA Chairman A. Jayathilak said there is a sustained demand from the industry to have a laboratory with the most modern equipment to identify the antibiotic residues up to the lowest and most microscopic levels. “We have had some instances of presence of antibiotics in the past, especially the most commonly detected Chloramphenicol and Nitrofuran metabolites, and it has led to immediate response. We pass on the information immediately down the stream to the exporters and the farmers but you need to have the best equipment and manpower in place for it.”

Vol. 10, Issue 10 -March- 2018

TASTY PLATE

India�s Only Monthly Newspaper for Food, Beverage & Allied Sectors

www.agronfoodprocessing.com

Vol. 10, Issue 10, March 2018,

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ood processing sector has overtaken many sectors in Budget 2018-19 as the Centre doubled allocation in this sector to Rs.1, 400cr from Rs750 cr last year. Food processing sector is growing at an average of 8% per annum. Additionally, the agri exports have the potential of $100bn and hence government plans to set up state-of-art facility in 42 food parks. Food processing seems to have made its mark with the government at last, it was always an economically strong sector but its potentiality though known has been recognised now. Undoubtedly, food processing industry plays a central role in driving improvements in the country’s nutrition situation because it’s the first organized linkage between the farm and shelf. It is important to note that food processing is an important contributor to economic and social growth and accounts for 32 per cent of the country’s total food market. One of the largest industries in India and is ranked fifth in terms of production, consumption, export and expected growth. It contributes around 14 per cent of manufacturing Gross Domestic Product (GDP), 13 per cent of India’s exports and six per cent of total industrial investment. India's food processing sector has the potential to attract USD 33 billion (about Rs 2.14 lakh crore) in investments by 2024, and its food and retail market is expected to touch USD 482 billion by 2020, up from USD 258 billion in 2015, with recent reforms making the sector more competitive and market- oriented. If we talk about food we, relate it to health too and this is as of now playing a very important role in agri food industry, as most of the consumer are becoming health conscious and look out for healthy option to eat on. Coca-Cola, India is working on reducing the sugar content across its portfolio by introducing low-sugar and diet variants of existing brands, and bringing in all-new products with lowersugar content. It is also expanding its fruit based beverage offerings, frozen fruit dessert, getting into dairy based value added products and also exporting those products developed in India. The company is all set to focus on 'fruit circular economy’ enabling farmers to increase their yield, source pulp and launch fruit based products. Keeping in line with changing consumer preference towards healthier products, Nestle is to cut its salt content in its instant noodles Maggi by a further 10 per cent in 12-18 months. Over the years, Nestle has reduced salt in Maggi by 33 per cent. FSSAI have released a draft 'Food Safety and Standards (Safe and Wholesome Food for School Children) Regulations, 2018 that listed dozens of food items in three categories. The foods and beverages categorized as green or yellow above may be included on the school menu and food business operators manufacturing HFSS [high in fat or salt or sugar] food products shall not advertise such foods to children in school premises. The law would allow schools to develop their own innovative ways to indicate compliance with the rules, such as placing red, yellow or green stickers on food items sold in the school or placing the packages in the shelves as per their colour coding. Proposed regulations to introduce traffic light health labelling for food products in Indian schools have infuriated All India Food Processors' Association, who has warned that a law like could force manufacturers to use the system for entire ranges of their products, regardless of where they are sold, including jams, juices, butter, pickles and Indian condiments, as well as basic recipe ingredients such as meat and vegetables. The Centre for Science and Environment (CSE) has slammed the All India Poultry Development and Services Private Limited for advertising that no antibiotics are used in chicken stressing that contrary to the advertisement the use of antibiotics in poultry sector is ‘rampant’. CSE has alleged that the advertisement is complete misrepresentation as in its detailed survey the green body found that the industry in rampantly use antibiotic. It also said that the poultry industry is even using life-saving drugs like colistin to fatten the chicken. There seem to be no genuine attempt by the industry to reduce antibiotic misuse and this advertisement is a fib. Maharashtra government has proposed the concept of incorporating the food park model towards sustainable agriculture and also higher income for the farmers. At present, the state government has shortlisted almost 12 to 14 mega food parks across Maharashtra. The Niti Aayog has taken the decision to begin consultations with state governments to evolve a comprehensive MSP model which can be financially feasible and workable at the grassroots. I am not surprised that the food industry with doubled allocation of finance is on the seventh sky. But this is just the starting. Time has come for the food processing industry to prove its worth and make the govt. realise how important it is in the food chain of this country and globally as it is the only reliable organized linkage between the farm and the shelf.

Indian Ethnic Palate The growth in this sector has been rising gradually since 2004; it was $2.2 billion in 2009 and increased to $11.7 billion in 2016. Globally, the Indian ethnic food products are known for their ingredients and flavors which cannot be replicated.

fter major international food giants like Dominos, KFC, Subway, Dunkin Donuts, Burger King, etc, that have become popular names in India, there is reversal on the cards now. Several entrepreneurs have opened Indian restaurants mainly because Indian food is gaining popularity in the world. The food industry is consumer-centric in nature as food manufacturers make products that relate to cultural elements and traditions. This means that the food industry of a given country like India cannot be separated from its agricultural and cultural characteristics and the nature of its geography, climate, and crops. Ethnic foods that come from diverse regional backgrounds have play a pivotal role in growth of the food industry. The focus is to provide safe, hygienic food to consumers who are key elements in

capturing a significant market share. As per recent survey, Indian food has tremendous potential. Now with a global food culture, people are keener to experiment. The international market is just getting ready for a good Indian chain to get into it. Industry experts believe that there is a great thrust for Indian food abroad. The Indian population is also growing in the world and cultures of various countries are coming closer everyday of which food is a major part. So, the main motive is to globalize the Indian food. The developments in food products have also led to developments in food culture as well. The advancement of food culture in each country depends on how long the nation spent as an agricultural society, as well as whether it underwent a rapid transition to an industrialized society. In countries that industrialized quickly, food culture developed within the framework of an efficient economy, while in countries where industrialization was slower and there was an extended agricultural period, food culture developed in the context of agricultural culture.

entire pyramid of the food industry. Even aspects of production-centric technology, such as productivity, nutrient intake, and standardization are important factors for the booming Indian food industry.

A country like India that boasts of diverse culture and regions has several ethnic products on offer like pickles, spices, cookies/biscuits, South Indian dishes, and other regional popular items.

Today people have variety of foods prepared using diverse, cultural methods to choose from. In traditional markets, agricultural produce and some ethnic foods became exchangeable goods, gradually developing into the production and exchange-based markets we see in today’s industrialized society. Indian ethnic food products are exported to several countries in the world because a good number of Indians have settled abroad and unique taste-feel of these products.

The entire world becomes their marketplace and eventually these Indian companies gain good profit margins. Manufacturers in India can tap this huge market and make use of this opportunity by providing quality eatables.

Ethnic food market scenario The ethnic food market scenario has dramatically changed in recent years as the number of Indians increases with every passing year. The growth in this sector has been rising gradually since 2004; it was $2.2 billion in 2009 and increased to $9.1 billion in 2016. Globally, the Indian ethnic food products are known for their ingredients and flavors which cannot be replicated. Indian and Asian foods are highly in demand in foreign locales as over 1,000 new products were launched in U.S. between January 2006 and December 2010. The trend continues as Indian ethnic food items are tremendously doing well with many companies exporting their products to different countries in the world. Canada, Europe, Australia and Middle East regions are the places where Indian ethnic products are

Bengal’s rasagollas, gulab jamuns and mishti dhoi have already travelled across different countries. So, whether it is Punjabi or South Indian food, they have found loyal patrons in the international market.

Typical street favorites of India like chaat, samosa, kachori, and dosa are greatly in demand abroad. Indian sweets and desserts require no introduction in international markets as well.

Countries wherein there is huge demand for Indian ethnic food are USA, Australia, Canada, Dubai, Singapore, Hong Kong, and Britain. The demand for Indian food is on the rise in these countries because of large presence of NRIs there. Studies revealed that in places like Britain or Canada, many families eat an Indian meal at least three times a week. Indian food is a hot favourite in Britain and Canada. It is reported that London has more than 8,000 Indian restaurants.

Vol. 10, Issue 10 -March- 2018

TASTY PLATE

Is Gradually Gaining Global Attention The reasons for growth of Indian ethnic food As mentioned earlier, ethnic food items from India are popularly enjoyed by consumers internationally. Indian food is the sought-after meal by Indian foodies staying in different parts of the world. Hence when Indian ethnic food & other ready-to-eat/cook items are available in super-markets & retail stores, who would refuse to purchase them. This is one of the major reasons for the growth of this market. It is not just Indians who prefer these items, even the citizens of those countries tend to gain a liking towards these products. There is wholly distinctive taste appeal of our products in comparison to their local cuisine they consume. A distinctive style always stands out from the rest and that is what makes Indian cuisine so popular abroad. Indian cuisine consumption pattern is on the rise in overseas market for the different flavours it carries. It is keenly sought by food-lovers, be it rapidly increasing set of foreigners or NRIs who crave for Indian food. At times, the ethnic foods from particular country are localized to adapt with the culture, taste, and habits of people in other countries. This is known as ‘glocalization’ that brings about changes in production and consumption patterns. Even when localization strategies are pursued, they often fail when they damage the originality or traditional knowledge embodied in the food in particular. This means that in order for localization to succeed, a clear distinction needs to be made between values that need to be preserved and things that need to be changed, based on thorough preparation and analysis of traditions and the target region. Ethnic food has become serious business for Indian manufacturers’ and entered the global metropolitan culture all over the world. Ethnic food has a public concern now occupies the same place that health food did three decades ago. Because everyone is looking for newer, stranger and rarer kinds of ethnic cuisine available in the global metropolitan culture has proliferated enormously in the last twenty years. Indian food is popular around the world. Indians will not eat a burger everyday but they love to eat dal chawal, idli-sambhar daily and there is a certain pull in that direction. Many Indian companies look to Indianise the product with authentic innovation and introduce it to their targeted audience. Even the product packaging plays a key role to attract attention of customers. Indians residing abroad always seek for those items that give the feel and emotional connect of their homeland. Here the emotional aspect is significant as being away from the birth country & family, individuals crave to eat such ethnic food. Popular celebrity Chef of India Sanjay Kapoor said “Traditional Indian food is amongst the best in the world but still has not received its full due. There is so much to learn and savour from our cuisine and we need to promote it, irrespective of any physical boundaries. Traditional Indian food is so good, everybody needs to experience it.” Today as advancements takes place in information technology and transport, it has given the term ‘globalization’ its true meaning allowing us to easily meet people of any ethnicity or travel to any country. In this globalized era, other industries are focused on unification, speed, standardization, and uniformity, but as the nature of food industry requires diversity due to taste, culture. The reason being is that people tend to get bored of eating the same thing. As food products vary based on

the ethnic groups, history, and geographical features of each country, global citizens today want to try a variety of foods from around the world while also learning about that country’s culture, history, and geography. Accordingly in the globalized era, the concept of food industry is being redefined. For example, most people make choices about food products three times a day. As people are naturally meant to get bored of a food if they keep eating it regularly, they will seek out something new, which means that efficiency cannot be the sole goal of production. It is important to remember that food involves biological, visual, medicinal, and cultural elements. Therefore, as globalization becomes more ubiquitous, rather than seeing food products converge toward a uniform industry standard of high calories and strong flavors, people turn to the diversity, history, and geographical values embodied in traditional ethnic foods that hail from different regions and ethnic groups, leading to the development of technology to store, distribute, consume, and cook these foods. One important category of food products that is borne out of traditional knowledge is fermented foods. There are numerous ethnic foods around the world, including ‘slow food’ movements, which prominently feature fermented foods. Milk-based fermented foods produced by wanderers group led to the development of new fermented foods using the grains and vegetables of settled agricultural societies. These ethnic foods are human centric, and came from human culture and human biological phenomena which culminates that they have a significant cultural value. Several households prefer ready-to-eat food because of the convenience factor hence an increased sale of packaged Indian ethnic food has been witnessed in global markets. Owing to rise in disposable income and young demography of households in metropolitans, the consumption rate will surge across categories of packaged food such as packaged beverages, dairy products, snacks, frozen foods, ready to cook/ready-to-eat and baked foods, with urban households accounting for 80 per cent of these purchases. India’s regional and cultural diversity also provides variety of different kinds of food: crunchy, soft, spicy, steamed, bland, finger food, bakes, fries, preserves, pickles, roasts, meats, vegetarian savouries and wide range of sweet dishes right from kheer to chunky barfis and pedas and nebulous halwa. Readyto-cook foods are gaining popularity as everyone looks for quality and convenience. Few popular Indian brands catering to global market Haldirams Haldiram made humble beginnings in Bikaner, Rajasthan with a savory store in the year 1937. Today, it is one of the biggest brands of

sweets and savories not only within India, but its products are sold in several countries all over the world. Every Haldiram packet contains product information in numerous languages, catering to its international fans. The company is majorly known for its snacks and namkeen variety in the country. Haldiram’s has over 100 products that include frozen foods such as frozen meals, ice cream and kulfi, sweets, cookies, crackers, papad, savories, chips and other snacks. Haldiram’s also produces fruit-flavored beverages and dairy products. Since 2010, the company began production of ready-to-eat food items. It provides all type of traditional Indian food and sweets. Haldiram’s products are exported to several countries worldwide like United Kingdom, United States, Canada, United Arab Emirates, Australia, New Zealand, Japan, Sri Lanka, Thailand and in over 50 countries.

pany has a strong nationwide distribution network in domestic market that sells products such as branded rice, wheat and pulses, healthy snacks, spices and other value-added products like brown flex seeds and cashew nuts. Rice is considered as staple dish in India, but even for millions of Indians abroad. This brand comes to mind as they scout for perfect basmati rice to cook at home. Started in 1993, ‘Daawat basmati rice’ is not just one of premium rice brands in India, but today it is sold around the world. Bollywood superstar Amitabh Bacchhan is the brand ambassador of ‘Daawat’ where the packs are stacked at supermarket shelves in over 50 countries gives a nostalgic pride to Indian-origin shoppers.

Paperboat Bangalore-based Hector Beverages gave Indian consumers the taste of aam panna and jal jeera in tetra packs & pouches. The product Paperboat established itself with the launch of ethnic drinks like aamras and jaljeera. This Indian startup has given people a product that has retained the taste of the fruit/ingredient. The ready-to-drink beverages in Indian flavours like sherbet, kala khatta, jamun packaged in attractive containers, and supported by nostalgia inducing branding campaigns has captured the taste buds of several.

Bikanervala Bikanervala is an Indian sweets and snacks manufacturer based in Delhi, India. The company was founded in 1950, as a retail sweets (Traditional Indian sweets) and namkeen shop in Bikaner, Rajasthan. Bikanervala has its outlets and range of restaurants in North India including Delhi. Bikanervala products are exported to several countries worldwide. The company has recently set up manufacturing unit in Dubai. There are Bikanervala retail outlets different places in Dubai, London, Australia, Singapore and New Zealand. The company aspires to become a brand leader of Indian ethnic foods in the world. Bikanervala puts in the best efforts to serve quality food to the customers all over the world. The Indian fast food pioneer is focused to promote Indian heritage, culture and cuisine worldwide. In addition, the company has now customised Indian food for the global market.

The consumption ratio of carbonated drinks is dropping gradually. There is a shift from carbonated to non-carbonated drinks consumers move towards non-fizzy beverages which seem to be an exciting alternative to fizzy drinks. Hector has been a pioneer in this space and created an ‘Indian ethnic alternative’ for every consumer. This is the biggest source of excitement. These beverages are produced using local spices, fruit, flowers and pulses, and some fruits grow wild, such as jamun and kokum. Paperboat has been innovative in terms of product, packaging and marketing to create the consumer wow factor. The company is popular in India as it has significant presence in metro cities such as Delhi, Mumbai, Bengaluru, Hyderabad, Pune, and Chennai. The product is sold in international markets like Dubai, Malaysia, UK and the US.

Vadilal Major ice cream player Vadilal Industries Ltd is also one of the largest processed food players in India with significant exports of frozen vegetables and ready-to-eat snacks, curries and breads. Vadilal entered the processed foods segment to optimise utilisation of its extensive cold chain network in 1990s. This business is perched for strong growth in next few years due to urbanisation within India and rising demand for Indian food amongst developed regions like the USA, Western Europe and other parts of the world. Vadilal believes in providing best quality of products & services to its customers. They create tasty ice-creams and processed foods with wide range of flavors and provide products. Vadilal offers variety of exciting products for all age groups and aims to come up with various innovative products to satisfy our customers.

LT Foods LT Foods flagship brand ‘Dawaat’ was launched in 1980s and is now recognized as the leading brand in the industry. The com-

Mother Recipe Pune-based packaged foods brand Mother’s Recipe has a portfolio of pickles, ready-tocook mix and cooking pastes, among others.

Vol. 10, Issue 10 -March- 2018

They plan to venture into the frozen food category and set up a dedicated unit in Gujarat. Aiming to achieve a turnover of Rs 500 crore by 2018-19 as they recorded revenue of over Rs 200 crore in 2014-15 and turnover in the following year was Rs 250 crore. The brand commands 25 per cent market share in the Rs 450 crore organised pickle industry in India and wants to spread their wings in years to come. Mother’s Recipe sells 47 varieties of pickles in the domestic market and exports 60 varieties to over 40 countries. The products exported contribute to 40 per cent of company’s turnover. With an increasing popularity of Indian cuisine globally and tweak their distribution model and focus on the large retailers instead of just specialty Indian or Asian stores. Frozen vegetarian snacks are growing at 21-22 per cent CAGR and this segment is anticipated to grow in next few years. MTR Foods Headquartered in Bangalore, MTR Foods is a food products company that manufactures wide range of packaged foods like breakfast mixes, masalas, spices, ready-to-eat meals,

TASTY PLATE

dessert

mix-

es,

land, Middle East, Japan and South East Asian countries. The culinary expertise blends years of rigorous quality, tradition and taste in wide range of ready to eat-curries, rice, soups, breakfast mixes, dessert mixes, snack mixes, spices & masala. The company believes in providing the best products that will keep customers satisfied after consumption.

snacks, beverages, pickles, etc. All range of products is authentic and 100 per cent natural. MTR Foods offers pickles which are made with traditional recipes passed down through generations. The company produces both fruits and vegetable pickles like garlic, tender mango, tomato, Avakai mango, lime, mango thokku pounch, mango etc. MTR Foods authentic Indian food marks its global presence for its wide range of packaged products and recipes. The brand is now home to almost Indian kitchen in the USA, Canada, UK, Germany, Australia, New Zea-

AMUL Amul is an Indian dairy cooperative in the state of Gujarat established in the year of 1946. Today, the brand is managed by the Gujarat Co-operative Milk Marketing Federation Ltd (GCMMF) jointly owned by about 3,000,000 milk producers in the state. Amul model has helped India to emerge as the largest milk producer in the world. The milk is processed in 184 district co-operative unions and marketed by 22 state marketing federations, ensuring a better life for million. The country uses several Amul products like milk, bread spreads, cheese, UHT milk,

ice cream, paneer, dahi, ghee, milk powders, mithai range, chocolates, fresh cream, Amul cattle feed, beverage range and happy treats. From milk products like paneer and cheese, the brand has over time progressed to serve the health segment with its sugar-free and probiotic milk products. It is the largest exporter of dairy products in the country. Amul is available in more than 40 countries of the world as they export a wide variety of products. The major markets are the US, West Indies, Gulf region, Singapore, Philippines, Thailand, Japan and China. Nilon’s The head office located in Pune, Maharashtra, Nilon’s Private Limited has grown into is India’s largest producer of pickles, tootyfruity and roasted vermicelli today. It is one of the country’s fastest growing processed food suppliers with an extensive range of quality products. It is a leading manufacturing company in India for quality food products pickles, spices/ masalas, cooking pastes, Chinese products, roasted vermicelli, etc. A wide variety of pickles are produced like mango, lime, green chilli, sweet mango, tomato, stuffed red chilli pickle, cut mango pickle. Nilon products are exported to focus markets like Dubai, New Zealand, Malaysia, South Africa, Singapore, Australia, France and Japan. Conclusion India is one of the world’s largest producer as well as consumer of food products. It can be rightly said that this sector plays an important role in contributing to India’s economic development. Indian appetite has undergone several changes in recent times.

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Since the last decade, due to globalisation, many Indians have travelled to different parts of the world and vice versa with massive entry of people of different nationalities in India. This has further resulted in Indianisation of various international cuisines. Food culture in India will go a long way to fulfill the urgent need to archive recipes that drive our vast culinary heritage. Food is a unique form of art because of accessibility it offers along with basic human need to eat. It has the ability to touch lives as it facilitates connectivity that comes while eating drinking with the people we love. Food also breaks down the cultural, religious and social barriers and connects on vital platform all members of the society. Indian cuisine is widely available in Canada, especially in the cities of Toronto and Vancouver. It is also very popular in Southeast Asia, because of the strong Hindu and Buddhist cultural influence in the region. Indian food has considerable influence on Malaysian cooking styles and enjoys fame in Singapore. This place is also known for fusion cuisine combining traditional Singaporean cuisine with Indian influences.

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Different recipes, ingredients and processes that Indian ethnic products contain are unique is because of their diversity and regional specialty. Innovation of traditional recipes for Indian consumers abroad is gaining popularity at a global stage. Popularity of Indian food abroad is visible from the fact that after Chinese and French cuisines, Indian cuisine is the third-most popular cuisine in the world.

Vol. 10, Issue 10 -March- 2018

SEAFOOD NEWS

Tilapia feed mill set up by Cargill in Andhra Pradesh in India and produces fish feed products for tilapia and other warm water species. Cargill currently works with toll millers in the region, selling about 30,000 tonnes of fish feed a year, so the new plant triples its fish feed capacity in India. Cargill invested more than US$10 million in this plant that will create 200 new jobs in the region.

In an aim to promote tilapia culture in India and boost the seafood industry, Cargill opened its first Indian aquaculture feed mill, with a capacity of 90,000 tonnes a year. The company has established the plant in Vijayawada and acquired from Mulpuri Foods & Feeds. This move is termed as an important step in Cargill’s work to develop its aqua feed business in India and across Asia. The new feed plant marks the introduction of Cargill’s EWOS brand of aqua nutrition fish feed products to India. The unit is located in the Andhra Pradesh region which is being hyped as the capital of aquaculture

MPEDA looks to capture international markets for seafood exports

arine Export Development Authority (MPEDA) plans to reach more international markets to enhance seafood export from India. MPEDA is looking towards markets in Eastern Europe, Latin America and Central and West Asia, Canada, Russia and Australia for expansion. In Asia, MPEDA has identified South Korea that shares a common food habit of Japan, as a potential market for Indian seafood, especially shrimps, value-added imitation products, fishes, and crabs. MPEDA has initiated interaction between Indian exporters and the delegation from South Korea. To understand trade preferences and sensitize the trade segment about the diversity of seafood products offered by India, a delegation led by Jayathilak visited South Korea in November last year. MPEDA Chairman A Jayathilak said “India currently exports seafood to 103 countries and MPEDA has been making constant efforts to market products in more countries. We are expecting a delegation from Seoul to attend the 21st India International Seafood Show at Goa starting January 27.MPEDA is participating in ‘Seafood Exposition’ organised at Dubai every year as we are aware it will enable Indian seafood exporters to expand their businesses not only in West Asia but also in the neighbouring African markets. We have our presence in several other seafood export exhibitions too. Trade inquiries received at the shows are circulated to all registered exporters for making business prepositions.” “Besides, trade delegations are also undertaken to understand more about the market and to interact with potential buyers there. The delegations provide immense insight into market preferences on the types of seafood, packing methods used,” the Chairman added.

Managing Director of Cargill aqua nutrition in South Asia, Chad Gauger said “This is a vibrant market and we’re excited to better serve farmers across Andhra, Tamil Nadu, Odisha and Bengal. The new facility positions us to better meet their demand, as the country will soon become the most populous in the world.” President of Cargill Aqua Nutrition, Einar Wathne said “India presents great opportunities for Cargill and plays an important part in our aqua nutrition growth strategy in Asia. The plant leverages Cargill’s industrial and supply chain capabilities, as well as our innovation expertise to provide customers with the best possible feed solutions, helping them grow healthy seafood and increase their output.”

GPS-based database of export-oriented aquaculture farms

arine Products Export Development Authority (MPEDA) has launched an initiative to develop a GPS-based database of export-oriented aquaculture farms in India for their traceability as well as to protect the interests of end-consumers. This is to ensure shrimp and exportable varieties of fish are free from traces of banned and unwanted substances such as antibiotics.

powers them with market information for getting better price for the produce, and conducts awareness campaigns to sensitise them about the ill-effects of antibiotics

Under the scheme, MPEDA will register all farms engaged in the production of shrimp, shellfish and other exportable varieties of fish by providing farmers cards carrying a unique identification number (farm ID) and quick-response (QR) code containing basic information on their farms.

The produce from the enrolled units can be traced from the farm to the end-consumer. The pre-harvest test (PHT) to screen farm produce for banned antibiotics such as chloramphenicol and nitrofuran is also linked with the unique ID issued to the enrolled farmers. PHT certificate is compulsory for exports of aquaculture shrimp to the European Union.

An estimated 100,000 farms covering about 195,994 hectares are under shrimp culture in India. Out of this, MPEDA has collected GPS data for 65,595 farms covering 148,321 hectares while enrolment has been completed for 54,165 farms. MPEDA regularly monitors the enrolled farms and trains farmers in best management practices, em-

MPEDA Chairman A Jayathilak said the purpose of enrolment is to identify each farm/hatchery unit for extending assistance schemes as well as for their traceability.

Jayathilak added this measure will go a long way in addressing concerns of US, Japan and the EU regarding stringent quality controls over exports of seafood, and check traces of banned antibiotics in consignments.

Vol. 10, Issue 10 -March- 2018

FRUITS & VEGETABLE NEWS

India now focusing on processed fruits export

Private wholesale vegetable markets in Maharashtra to go digital APMCs,” More than 30 APMCs have already started the e-auction of the daily produce while 17 market committees having been conducting the quality testing of vegetables and produce supplied there every day.

As ‘Digital India’ mission continues to gain progress, even Maharashtra government decided to take a step in this regard. They plan to digitise the functioning of private wholesale vegetable markets for better transparency and to prevent farmers from being cheated while selling their produce. The Centre had earlier launched a pan-India electronic trading portal, called e-NAM (National Agriculture Market), to facilitate farmers, traders, buyers, exporters and processors with a common platform for trading commodities. e-NAM portal keeps a database of the movement of vegetable produce, its distribution, prices and fluctuations. It now plans to bring private markets under ambit of e-NAM, and digitize the functioning of some of major Agriculture Produce Marketing Committees (APMCs) in the state. State cooperation minister, Subhash Deshmukh said “There are around 60 major APMCs in Maharashtra which are being digitised. All the farmers, traders and commission agents working there are shifting to the e-NAM platform. We have now also decided to make the e-NAM mandatory for private

fter a decline in export of fresh vegetables, India is gradually shifting its focus from the export of fresh horticulture products to processed ones for better realisation and to beat the stringent import quality norms set by West Asian and European countries.

The minister also said as many as 2,24,487 farmers, 7,570 traders and 6,992 commission agents have so far registered on the e-NAM portal. “An APMC has a turnover of some hundreds of crores. Once it comes on the e-NAM platform, all the transactions will become transparent and activities like cheating farmers by tampering the weighing machines will be stopped.” Maharashtra has private agriculture markets in Nashik, Vani in Yavatmal, Nanded, Washim and Buldhana. The state has also launched weekly markets for farmers to sell their fruits and vegetables. The state has 307 APMCs, including both major and small ones, the turnover of which is around Rs 66,000 crore annually. Besides, there are 45 private markets, which do a business of around Rs 4,500 crore in a year. Deshmukh said “If all these transactions go online, it will save a huge cost and check manipulation of prices.” The collective turnover of all the agriculture markets in Maharashtra is worth over Rs 1 lakh crore. There are 40,000 commission agents in Maharashtra, who daily sit in the APMCs and regulate the supply and demand of vegetables, fruits and food grains, he added.

Data compiled by the Agricultural and Processed Food Export Development Authority (APEDA) showed an over 15 per cent decline in export of fresh vegetables to $581 million during April-December 2017 from $686 million in the year-ago period. Export of processed vegetables, however, rose 3.9 per cent to $197 million during the period from $190 million in the same period last year.

Frequent policy shifts are also responsible for the decline in export of fresh vegetables. In November 2017, the government levied a minimum export price of $850 a tonne on onion, which contributes nearly half of India’s fresh vegetable exports. Besides, the demand for fresh fruits and vegetables from neighbouring countries, including Bangladesh and Nepal, has declined over the last few months.

Similarly, export of fresh fruits declined 4.3 per cent to $391 million during the first nine months of the current financial year from $408 million a year ago. Shipment of processed fruits and juices rose

The 18 per cent goods and services tax (GST) on air freight of fresh vegetables, which was removed recently, also affected exports during the first nine months 2017-18.

India is leading in coconut production in the world

Amul partners with Govt. to help fruit, vegetable farmers

ujarat government along with support from Amul shall create strong cooperative network of vegetable and fruit growers under ‘Operation Green Gujarat.’ Amul’s experience and ability in the market will greatly benefit the government in coordinating with milk farmers and distribute milk products thereby helping other farmers sell their products and obtain better prices.

per cent. Export of fresh fruits and vegetables from India is 41 lakh tonnes and Gujarat has only 1.8 per cent share in India’s export. Hence this sector holds huge potential. Farmers faced price unpredictability due to a long supply chain, value loss, inefficient handling and damages to yield, high overheads, lack of quality governance and use of banned chemicals.

Amul will launch a pilot-project shortly in Ahmedabad and is expected to sell fruits and vegetables from its milk parlours. Currently, there is no organized system of purchase, distribution, pricing and quality control in fruits and vegetables. Though the produce gain high prices, farmers continue to have poor earnings.

Hence the state government decided to tie up with Amul to create a strong cooperative structure form fruit and vegetable growers, as milk farmers already have in place. Amul will organize demand-induced production, productivity enhancement and reduce production costs. It will also set up farmer-owned integrated and efficient supply chain through new dedicated outlets. The government will help in development of support infrastructure like processing and distribution system and space for cash and carry outlets across Ahmedabad and Gandhinagar.

Currently fruit and vegetable growers mostly work in an unorganized manner. Post harvest losses range from 15 to 20 per cent which is very high. Levels of processing are very low and stand at 6-7

West Bengal’s first floating market launched by CM Banerjee

eople who buy fruits and veggies will now gain a new experience as they can shop for it by the lakeside. West Bengal’s first floating market in Kolkata was unveiled by Chief Minister Mamata Banerjee through a remote control during a programme at Netaji Indoor Stadium. The lake at Patuli in South Kolkata has been transformed into floating market similar to the one in Thailand which is 400 metres long and 60 metres wide. The market has shopkeepers on boats selling vegetables, fruits, flowers, fish and meat. After the launch, state Urban Development Minister Firhad Hakim visited the market and bought bananas. An official present at the launch commented “Buyers will have a unique experience. They can stand along the walkways and shop. These boats will

have gates allowing buyers to gain entry and exit. The market will be open from 6 am to 9 pm.” The actual motive behind the launch of this floating market was basically to rehabilitate shop owners of Baishnabghata-Patuli market, an adjoining area on EM Bypass, which was being widened from four to six lanes. Due to the expansion, the government had to evacuate 228 shopkeepers from the market. About Rs 6 crore has been spent to set up the market and make customized boats, while Rs 4 crore was spent to build an underground sewer network for the adjoining area. Two water bodies were merged to set up the market. For buyers and shopkeepers to reach the boats, wooden pathways supported by wooden beams were constructed.

8.3 per cent to $460 million during the period from $425 million in the year-ago period. “Many countries have imposed stringent quality norms, which make it difficult for exporters of fresh fruits and vegetables, since most shipments are done by medium-scale traders. In case of processed fruits and vegetables, however, the involvement of the corporate sector brings with it an adherence to quality. Hence, shipping of fresh fruits and vegetables is gradually becoming challenging but exporting their processed variants is easier,” said Ajay Sahai, director-general and CEO, Federation of Indian Export Organisation.

nion Minister for Agriculture and Farmers Welfare, Radha Mohan Singh said that the Coconut Development Board’s (CDB) major schemes are focusing on coconut production, productivity, processing for coconut products, value addition, marketing, and export promotion in Bihar. India is leading in the global coconut production and productivity. The Minister said that annual coconut production is 2395 crore from 20.82 lakh hectare and the productivity is 11505 coconuts/hectare. Coconut contributes to about Rs.27900 cr to the country’s Gross Domestic Product (GDP). In 2016-17, coconut products worth of Rs.2084 cr were exported. More than one crore population depends on coconut cultivation for their livelihood. CDB aim is to assist coconut farmers in coconut production, processing, marketing and export of value-added coconut products. Singh said that the country has witnessed an increase in coconut export. During the period 2013 -15, coconut production was 42,104 million nuts whereas 44,405 million nuts were produced during the period of 2015-17. The export value has increased from Rs.3017.30 crore during 2011-14 to Rs. 4846.36 crore, which is 60.62 per cent more, and is an great achievement. In the year 2016, coconut

oil was exported to Malaysia, Indonesia, and Sri Lanka. For the first time, desiccated coconut is being exported to the US and Europe in large quantities from India. Coconut cultivation can be taken up even in homesteads in Bihar with proper management. Currently, 14,900 hectare is under coconut cultivation. As per the Board’s estimation, a nearly 50,000-hectare area in Bihar is suitable for coconut cultivation under irrigated condition. Consider this, the farmers who train at the Farmers Training Centre can consider coconut cultivation. In addition, an increase in coconut production will lead to employment generation. More people will get employment through the production of various coconut based products like coconut chips, milk, sugar, coconut water, tender coconut water, honey, jaggery, milkshake, snacks, and virgin coconut oil. Singh informed that CDB had sanctioned Rs.409.01 lakh for the implementation of coconut related schemes in Bihar for the year 2014 to 2017. To increase the area under coconut cultivation in Bihar, the focus is on ‘Expansion of area under coconut’ scheme and financial assistance is being provided under the scheme for the new plantations.

Vol. 10, Issue 10 -March- 2018

NEWS

Mala’s adds new Windsor Chocolatier – ‘Masters in chocolate-making’ range of products to its portfolio Nut, Hazelnut and Praline are being made in house and has a wide application in making finest chocolates and also other flavouring of products.

e would like to introduce ourselves as manufacturer of finest Belgian Handmade Chocolates. Our chocolates are prepared with 100 per cent Fresh Ingredients, French and Belgian origin Couverture Chocolates, pure cocoa butter, fresh cream, premium quality honey, fresh purees and nuts. Our materials are Tempered and processed over European machines with perfect blend of modern equipments and traditional methods. There after these chocolates are hand moulded, filled with exotic fresh fillings and finally decorated using premium ingredients. Chocolate are tardily but steadily replacing traditional Indian sweets in India. Owing to ascending social cognisance, on festivities and functions, people choose to gift well-wrapped chocolates over traditional sweets. Apart from that, increasing health consciousness among the urban masses is also tempting them towards Couverture Chocolate. As the demand of Couverture Chocolates is increasing day by day, flavour and variety is also expected with the same. We at Windsor manufacture our own homemade Nut Paste using latest Italian Machines and equipments. Pastes such as Almond, Pistachio, Cashew

Features: 1. We have 150+ European moulds and shapes. 2. Our chocolates are made here using Cocoa Butter based Belgian couverture chocolate, which puts us league apart from the chocolates available in the local Indian market which uses vegetable oil based compound chocolate. 3. Wide Variety of Flavours and Fillings. 4. Options available for spray, Dry painted and printed chocolates. 5. We use Belgian and French raw material for our chocolates. 6. Timely delivery. 7. Along with European Machines and Equipments our chocolatiers are trained from Belgium and France. 8. Customized packing option for weddings, celebrations, corporate gifting, events etc. 9. Private labeling. 10. Unique range of designs. 11. A large selection of Italian wrapping paper. We have the Filling and Flavours: Coconut, Coffee, Orange, Hazelnuts, Cramel, Paillete Feuilletine , Mango, Litchi, Apricot , Peach , Strawberry , Passion Fruit , Blackberry , Raspberry , Rhubarb and many more.

i n c e fulfilling mand for confectionarhas succeeddia’s most for proucts. The mitted to products that Nature years exboasts of production

1958, Mala’s has been several consumers’ dejams, sherbet and other ies. Over the years, it ed in becoming Insought after brand cessed fruit prodcompany is combring processed fruit closest to the quality intended. With 60 perience, Mala’s 500 tonnes jam alone!

Mala’s has recently extended its product category with premium Mocktail Cordials, Fruit Sauces, Fruit Confectionaries and also Fruit Fillings for Bakery applications. Mala’s aims to bring in new innovative products and concepts, and intend to tap newer markets and applications. They are listed as below:

retailers and sales team, MALA’s has launched Orange froogle. Experience the freshness of Orange, packed in a new FROOGLE ORANGE JELLY CHEW which immediately reminds you of the luscious orange fruit and gives a refreshing feel this summer!!! Mocktail - Whether it is beating the summer heat or charging up your house party or a need to treat your marriage guests, MALA’s Mocktail is the answer to all such queries. The six exciting variants come with 25 per cent juice content and is one of the fastest growing beverage categories across our company.

Froogle Orange - Based on the high demand from Zero Sugar Jam - Keep the intake of your calories in check with MALA’s Zero Sugar Jam that comes in two exciting flavors, Jamun and Strawberry. With no added sugar, MALA’s Zero Sugar Jam is the perfect answer for fitness and calorie conscious consumer. Mala’s products are always more fruitier, flavorful and always premium quality. ‘A passion for quality’ the company has never strayed far from their motto ever since it commenced operations. MALA’s has been an incredibly rich tasting affair for its customer.

Vol. 10, Issue 10 -March- 2018

DAIRY NEWS

Yakult Danone India expands Telangana Govt. to supply milch portfolio with Yakult light launch animals on 50 per cent subsidy Indian consumer we are delighted to make our product range more versatile and inclusive by launching Yakult Light to accompany our existing probiotic signature product, Yakult. Yakult Light caters to a broad consumer base such as the health conscious adults and the elderly.”

akult Danone India Pvt. Ltd., 50:50 JV between Yakult Honsha and Danone has further expanded its product portfolio in India with addition of a new variant: Yakult Light. After creating a niche for itself in probiotic category, Yakult is popularly known for their health drinks. Yakult Light is a sister product of the signature Yakult product and contains the same unique probiotic, Lactobacillus casei strain Shirota (LcS), in the same amount (6.5 billion). LcS has been scientifically proven, through more than 80 years of research, to help improve digestion and build immunity when consumed regularly. With reduced sugar and Vitamin D and E, Yakult Light caters for the daily needs of the health conscious and is suitable for all age groups. It contains less sugar and calories owing to the use of a sweetener of natural origin, Steviol Glycoside Managing Director, Yakult Danone India Pvt. Ltd. Minoru Shimada commented that “We are frontrunners in the probiotic category globally, and 35 million bottles of Yakult, our iconic probiotic drink, are consumed daily in 38 countries and regions across the world. Driven by our core philosophy of improving intestinal health through our probiotic strain LcS, our journey in India has been interesting so far. We see further growth potential in the market for our products. Our signature brand Yakult is already a household name and is being consumed by most families as a part of their daily diet. Today we are present in over 40 cities in 12 states across India. The health benefits of Yakult are tangible and there is an upward trend in consumption. To address the growing demand and in line with the needs of

Yakult Light will be available across 12 states in both retail outlets and thorough the company’s unique home delivery system. “We have over 260 Yakult ladies delivering our health message to Indians at their doorsteps. We have planned a 360 degree campaign to communicate the key messages of Yakult Light as well as consumer engagement initiatives at the ground-level to raise awareness,” Shimada added. General Manager – Science and Regulatory Affairs, Yakult Danone India Pvt. Ltd Dr. Neerja Hajela stated that 7 out of every 10 Indians are at the risk of a lifestyle disorder. While this has been linked to poor nutrition, stress and lack of physical activity, an important determining factor is poor intestinal condition. It therefore plays a crucial role in deciding your risk of disease and infection. Recent studies have revealed that the intestine is home to 100 trillion microbes which weigh about 2 kg and function as a virtual organ. They are absolutely essential for the digestion of food, the absorption of nutrients, the maintenance of a well-developed immune system and production of essential vitamins such as Vitamin B. Maintaining intestinal balance is therefore very important. Probiotics, backed by decades of research have been scientifically proven to contribute to the balance of these microbes and thereby both support digestive health and contribute to overall immunity. Yakult Light with reduced sugar contains the same number of the probiotic LcS as the original Yakult and therefore imparts the same benefit of improved digestion and better immunity. Vitamin D in Yakult Light helps in absorption of Calcium thereby improving and maintaining bone health, Vitamin E is an antioxidant helps to protect the body from the harmful effects of free radicals and therefore slows the process of aging. Yakult Light therefore aims to provide a broad spectrum of health benefits to all age groups.

First lactose-free artisanal curd in India by Epigamia

ndia’s first, all-natural Greek yogurt Epigamia launched in June 2015 rapidly gained attention and favor with Indian consumers. The product encourages a healthy lifestyle, not compromising on delicious taste. Epigamia Greek yogurt is thick and creamy in texture, low in fat, high in protein and is made with all-natural ingredients with zero preservatives. Epigamia recently launched an all-new product‘Artisanal Curd’, India’s first lactose-free curd. This latest addition to the brand’s product portfolio is aimed to improve gut-health and provide a cup of curd with ‘no consequences’ to those who are lactose intolerant i.e. cannot digest dairy products. The motive is to give curd a modern, healthy makeover that will improve immunity and ease digestion. Epigamia Artisanal Curd has more probiotics than any other curd and contains two strains of probiotics - Lactobacillus Acidophilus and Bifidobacteria that reduce abdominal discomfort. It is available in stores across Mumbai, Chennai, Bangalore, and Hyderabad, and priced at MRP 70.

Co-founder and CEO, Drums Food International, Rohan Mirchandani said “In a country that loves its milk, lactose intolerance is a highly underrated problem. What most consumers don’t realize is that some of the digestion issues they face are caused because their bodies are simply unable to break down the lactose present in milk. At Epigamia, we set out to build a product that would solve this issue. Hence the lactose-free, probiotic-enriched curd was created to cater to anyone seeking to foster a healthy digestive system.” Co-Founder at Epigamia, Chef Ganesh Krishnamoorthy said, “Creating a brand-new concept in something as age-old as curd was a unique challenge. Epigamia Artisanal curd is designed to address contemporary health issues, while retaining its traditional function, taste, and texture. We’ve used pure cow’s milk, added two types of probiotics and removed the lactose. Combined, these three elements ease digestion, boost immunity and give people with gastro-sensitivities, such as lactose intolerance and IBS, the opportunity to retain dairy in their diet and benefit from its calcium.”

arimnagar MP B. Vinod Kumar said the State government was taking all measures to launch a “white revolution” in the State by supplying milch animals to the beneficiaries on 50 per cent subsidy, thereby accelerating milk production. To this end, he would meet the National Cooperative Development Corporation (NCDC) officials in New Delhi on November 28, seeking financial assistance of Rs. 600 crore for providing milch animals on subsidy to meet the growing demand in the Telangana. The MP participated in the National Milk Day celebrations organised by Karimnagar dairy on Sunday, to commemorate the birth anniversary of father of milk revolution in India, Dr. Verghese Kurien. Vinod Kumar said that the government was taking all measures for the development of cooperative dairies such as Karimnagar milk producer company limited, Mulkanoor cooperative dairy and Nalgonda Mother dairy on par with the Gujurat’s Amul cooperative movement. He said the government was providing Rs. 4 per litre incentive to the milk producing farmers, to

encourage the dairy units in the State. There was good potential for the milk market in Telangana in general and Hyderabad in particular. Hence cooperative dairies can capture the market by increasing milk production. Taking inspiration from the Amul movement in Gujarat, Karimnagar dairy chairman Ch Rajeshwara Rao said, the Karimnagar dairy had grown in leaps and bounds during the last two decades. The loss-making dairy was transformed into a profit-making unit by motivating farmers to take up dairy units along with agricultural operations, by extending financial assistance for the purchase of animals and launching several welfare schemes for the milk producing farmers, their family members and the animals. Presently, the Karimnagar dairy procured 1.5 lakh litres per day and sold the same quantity in the market, he said, adding that they had set a target to increase milk procurement to 5 lakh litres per day in the coming few years. He also listed out various welfare schemes launched for the welfare of milk producing farmers including Palanidhi pension scheme, Kalyanamasthu, insurance for the families and cattle, health camps, fodder cultivation etc. Dairy managing director P. Shankar Reddy and others were also present.

Companies fortify Milk with Vitamin A and D

airy firms in India are fortifying their product with Vitamin A and D after food regulator framed new guidelines to combat common their deficiencies. Around 70-90 per cent Indians is estimated to have insufficient or deficient levels of Vitamins A and D prompting the Food Safety and Standards Authority of India (FSSAI) to ask milk producers to add 770 IU of Vitamin A and 550 IU of Vitamin D per litre of milk. CEO-FSSAI, Pawan Aggarwal said “Fortification of milk can act as a complementary strategy and help reduce the gap and can act as a vehicle to carry Vitamin A and Vitamin D. The fortification will help provide 15-30 per cent of the daily requirement for these vitamins. National-level consultations were conducted to make the industry aware of the standards and were requested to take up the fortification of milk for public good.” The additions are being made across all range of milk sold: skimmed milk, double toned milk, toned milk and standard. India is the largest producer of milk at approximately 160 million metric tons per annum. The per capita availability of milk is approximately 357 ml. Additions are being

made across all range of milk sold: skimmed milk, double toned milk, toned milk and standard. Milk is a complete food and is a good carrier of Vitamin A and D. Due to processing needs and current deficiency in the population; enough vitamins are delivered through food.FSSAI’s have taken the initiative forward with several of their development plans. Agarwal said “Like TATA Trusts have supported the states of Jharkhand and Assam to start the fortification of their milk variants. Mother Dairy took the initiative to fortify its complete range and today sells about 25 lakh liters per day (LLPD) of fortified milk. Another 5 states are in advance stages to launch the fortified milk in next 2 months which will take the total fortified milk to 20 per cent of the 410 LLPD. With this the fortified milk will reach about 50 million people in the country.” The plan is to fortify about 50 per cent of the country’s milk by 2019 and 80 per cent by 2021.“The landscape analysis of the private dairies is being done by Tata Trusts and very soon the campaign will start to include them in this initiative. Fortification is a complementary strategy to build the nation and provide nutrition security to the population of the country,” he added.

Hatsun Agro CMD bestowed Patronship award by IDA

atsun Agro Product (HAP) manufactures dairy products that cater to both cooking and consumption like milk, curd, ice creams, dairy whitener, skimmed milk powder, ghee, paneer and others. The key focus of the company is to provide quality products and have a technically advanced system that works in accordance with a time-tested business processes across their 16 plants. The Chennai-based firm has gained popularity over the years in the market. Recently Hatsun Agro Product Limited Chairman and Managing Director R G Chandramogan was conferred with prestigious ‘Patronship’ award by the Indian Dairy Association (IDA). The award was given in recognition of his outstanding services rendered in furthering the growth of the Indian Dairy Industry and the cause of IDA.

The citation read ‘this patronship is a fitting tribute to Mr Chandramogan for his exemplary role in the development of the dairy industry and his numerous contributions to its progress.’ Chandramogan was the first individual from private sector dairy to receive this honour. The award was given at 46th Dairy Industry Conference held in Kochi. The tribute is annually presented to a person with outstanding academic or professional achievements in dairy science and technology. On this accomplishment, he said this award was a testament to the achievements of the organization in terms of excellence in quality, innovation and commitment to enrich lives of farmers and consumers. “We are glad that our efforts including the back end support services to farmers are recognized at national level.”

Vol. 10, Issue 10 -March- 2018

NEWS

Amul looks to expand ‘dark chocolate’ portfolio upgrade the existing chocolate consumers from sugar-rich to cocoa-rich experience. We are the only player to have cocoa content of up to 75 per cent in our dark chocolates. Soon, we will be launching chocolates with 90 per cent cocoa-content and going upto 100 per cent. Amul chocolates have created a new niche in the chocolate industry.

ujarat Cooperative Milk Marketing Federation Ltd (GCMMF) promoter of Amul brand forayed into chocolates to supply chocolate for its ice-cream variants in 1973. Later, Amul Chocolates was launched but for years it failed to attract attention in milk-dominated operations of the Federation.But in mid-2016, Amul revamped its chocolate branding and introduced dark chocolate in different varieties. It has plans to expand their chocolate vertical by making high cocoa-content chocolate variants under its ‘single origin dark chocolates’.GCMMF is gradually gaining prominence as India’s ‘dark chocolate maker’ providing nutritional-rich cocoa with maximum quantity in a chocolate bite making chocolate consumption a healthy affair. Having chocolates with upto 75 per cent cocoa content, they now plan to launch 100 per cent cocoa chocolate setting new rules for the chocolate industry. Cocoa is a rich source of anti-oxidants, iron, calcium and other minerals besides its ‘bitter’ taste. MD of GCMMF, R S Sodhi said “The aim is to

Amul has invested Rs.300 crore to upgrade its chocolate facility at Mogar on National Highway-8 from 200 tonnes per month to 1000 tonnes with an excess room for doubling the capacity at the same premises. With current turnover of Rs.150 crore from chocolates, Amul anticipates touching Rs 1000 crore turnover by 2020 as awareness and acceptance rises for the dark-chocolates.Sodhi said “This will mean more money to farmers. Higher earnings of GCMMF will be ultimately distributed among the farmers. This way, we are redefining the Amul brand with more inclusive portfolio and premium offerings in line with the pure and natural image of the brand.”

Import duty on cotton seed oil, olive oil raised

he import duty on crude soyabean oil is 30 per cent, crude sunflower oil 25 per cent and crude rapeseed oil 25 per cent until the Budget was announced wherein the import duty was raised. The government increased import duties on certain crude and refined vegetable oils like cotton seed oil, olive oil and groundnut oil to 30-35 per cent to check shipments. Import duty on crude edible vegetable oils like groundnut oil, olive oil, cotton seed oil, safflower seed oil, saffola oil, coconut oil, palm kernel/babassu oil, linseed oil,

maize corn oil, castor oil, sesame oil, other fixed vegetable fats and oils has been raised from 12.5 per cent to 30 per cent. Similarly, import duty on these refined edible vegetable oils has been raised from 20 per cent to 35 per cent, according to the Budget document. Solvent Extractors’ Association of India’s B V Mehta said the country mainly imports cotton seed oil and olive oil. India imports about 14-15 million tonnes of edible oil annually to meet domestic demand.

Edible oil market in India crossed Rs 1.3 trillion in 2017

eople in India are giving up on ‘loose oil’ sold in grocery stores and are going in branded edible oil. As per data from market research has revealed that the edible oil category had overtaken dairy to become the largest packaged food segment a few years ago, grew 25.6 per cent to cross the Rs 1.3 trillion mark in 2017. This is the first time any packaged food category has crossed the Rs 1.3 trillion mark. Dairy was the second largest with Rs 1.2 trillion, 16.5 per cent higher than 2016.The packaged food market, including rice, pasta and noodles, stood at around Rs 378 billion last year, growing 23.6 per cent year on year, thanks to the downside risks associated with these kinds of foods. In fact, edible oil formed over 30 per cent of the Rs 4.34 trillion packaged foods market in India, compared to the 8.8 per cent share held by rice, pasta and noodles. Chief Executive Officer at Adani

Wilmar, the company that sells a number of edible oil brands, Atul Chaturvedi stated that “Growth is primarily coming from new consumers, who are shifting from loose to packaged oils. Packaged oil sales are growing at 2.5 times the rate of overall edible oil consumption in India.” Managing Director of Cargill’s food business, India, Deoki Muchhal said “increasing awareness for safe products, the food law administration restricting loose product sale and the crackdown by the government on unfair trade practices aided this growth.” According to market research company, the rice, pasta and noodles category will grow faster than others till 2022 with a 12 per cent cumulative average growth rate, followed by breakfast cereals (10.6 per cent). Edible oil, though, is expected to maintain a healthy rate of 9 per cent.

Vol. 10, Issue 10 -March- 2018

NEWS

E-Spice Bazaar to ensure traceability ACE Technologies presents and quality in international markets: TMG Impianti S. P. A end-of-line Spices Board packaging machines.

nion Commerce Minister Suresh Prabhu launched a database of export-oriented aquaculture farms, along with e-Spice Bazaar at the Partnership Summit. This project aims to ensure traceability of Indian spice farmers in international markets. Andhra Pradesh Chief Minister N Chandrababu Naidu, Visakhapatnam MP Kambhampati Haribabu attended this event. Meanwhile, the Spices Board has launched e-Spice Bazaar that will determine the quality and price of their produce for export in the international markets. Chairman of Spices Board, Jayathilak said “The e-Spice Bazaar ensures total integration of all the agencies involved in spices production and exports. The farmers are also helped through

technological advice from scientists in universities and other research stations.” The e-Spice Bazaar Farmer Traceability Project, being executed with support from the Central Government’s Department of Electronics, seeks to incorporate all commercial spices grown in the country, bring spice farmers in the global supply chain with identification of traceability at source, and generate direct linkage with exports to get a premium price The project currently covers 52,000 chili and turmeric farmers in Prakasam and Guntur districts of AP and Khammam and Warangal of Telangana. In addition to chili and turmeric farmers in these four districts, the portal of the project also has the database of pepper and turmeric farmers from the tribal belt of Vizag Agency area and curry leaf growers of Krishna, Guntur and Prakasam districts.

Satellite technology in aquaculture, fisheries will improve the yield: CMFRI

ndia’s Central Marine Fisheries Research Institute (CMFRI) will host a seminar on using satellite technology to improve the yields and processes of its marine fisheries sector. CMFRI has collaborated with SAFARI (Societal Applications in Fisheries and Aquaculture using Remote Sensing Imagery), an international project developed by the United Nations Oceans and Society: Blue Planet’ initiative, under the umbrella of the Group on Earth Observation (GEO). As part of the framework agreement, CMFRI will host the second international convention of SAFARI in Kochi, Kerala, India from 14 to 18 January, 2018. CMFRI’s partnership with SAFARI will focus on the study of areas of fishing grounds and critical habitats to understand better how ocean occurrence such as changes in sea-surface temperature affect fish populations. It will also study changes occurring in the ocean ecosystem owing to climate change and how those may affect fish abundance

and behavior.CMFRI Senior Scientist Grinson George said that “India has vast coastlines, we are unable to predict the fish abundance and there is a delay in assessing the areas of abundance and its dissemination to fishermen. India’s wild-catch fisheries operations could benefit from predictive modeling so they can better plan their harvesting, and from better use of India’s satellite infrastructure to help fishermen locate bigger catches.” CMFRI said in a statement that the symposium, ‘Remote Sensing for Ecosystem Analysis and Fisheries’ will seek to find ways and means to apply remote sensing techniques in areas such as aquaculture, harvest fisheries, fisheries management, and fishery environment, as well as ecology, fresh water, estuarine and marine fisheries, and socio-economics.

CE Technologies would like to introduce cartoning station of new generation, with integrated erecting, packing and sealing sections for RSC cartons. These machines are compact footprint designed to work with different types of products. ACE Technologies presents TMG Impianti S. P. A. from Italy, specialized in engineering and manufacturing of automated endof-line packaging machines Highly reliable The high reliability of monoblock is guaranteed by a simple movement system optimised with the employment of reliable components and Brushless motors for the main movements.

ton out feed from the magazine and shaped guides are used. The carton erection is carried out by a mobile arm equipped with suction cups. This system allows a quick and safe opening also of very difficult cartons. High output “Twin” machine version, foresees a particular design of monoblock which allows the installation of two pick up equipment’s suitable for the product type to handle, in order to increase the final machine production, achieving the output of 1200 cartons/hour.

Carton opening Cartons storage is placed perpendicular (90°) to the cartons direction leading in order to speed up the working cycle. The carton forming is realised during the car-

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Vol. 10, Issue 10 -March- 2018

US look for more export of protein meal to India

s trade relations between countries improve, there is significant support obtained from these trade partners in various segments of the economy. US expect more export of protein meal such as soybean and DDG obtained from corn to India besides reduction in agricultural tariff. US under Secretary for Agriculture Ted McKinney said, “We do believe it will benefit Indian farmers and consumers to be looking at more purchases of DDG and soybean meal and number of other products.” Soymeal and DDG obtained from Genetically Modified crops are ‘productive’ source of protein, and the entire world including Europe and Japan had concluded that DDG was not ‘living mala-fide organism.’ GM cotton seed meal was ‘pretty good’ source of protein and being used in India. McKinney said US saw great opportunity in the supply of protein meal to India. “We hear it from India’s own corporate community. Good examples might be feed-meals. They tell us they need more protein, mostly DDGs, which is yellow part of the corn comes during ethanol process in US. Your own farmers want to produce their own poultry, dairy, beef. And we are happy to provide ingredients, highly nutritious protein.” McKinney said the total export from India to US in 2017 stood at $2.6 billion while that from US to India in the same year was $1.6 billion. Seeking lower agriculture tariffs for American items would be in best interest of Indian consumers as well as farmers.

“Based on our experiences, tariffs are not the best way to live up farmers. We do believe (lowering) it will benefit Indian farmers and consumers, who are looking at more purchase of DDG and soybean meal and number of other products.” US had stopped subsidies to its farmers and tariffs were problematic most of the times. “We do not give subsidies anymore despite what many people think around the world. We have safety nets, insurance net. That is self-funded by farmers. But tariff is not good thing if you are in free trade and if you want highest quality, lowest cost product,” he said.

www.agronfoodprocessing.com

NEWS

Vol. 10, Issue 10 -March- 2018

TRENDY PACKAGING

First impressions matter. Experts say we size up new things in somewhere between 30 seconds and two minutes. Brand Packaging is categorized in the same lineas visual manifestation is one of the most important aspect of brand packagings. Of course what’s on the inside counts on the same rate but somehow it’s the look that appeals the consumer first when it comes to packaging of food, the outer wrapper is so much more than mere aesthetic appeal- it appraises the product within. A soundly packaged edible product has a longer shelf life, is compact enough to find space in the consumer’s kitchen, and is easily maneuverable. Owing to rising urbanization and a quick-fix lifestyle, it is therefore of little surprise that the demand for packaged food is increasing.

Trends and opportunities in Indian packaging Industry

he Indian food packaging Industry The packaging industry in India is a mix of both organised medium to large player’s as well very small players. Domestic demand for packaging is expected to grow rapidly in coming years. FMCG companies are now widely adopting sustainable packaging technologies to reduce cost of packaging as well as taking steps to ensure recycling of packaging material which also protects the environment. India is the second largest producer of food in the world and one of the major consumers of packaged foods and beverages. Increased consumer awareness and growth of the processed food and beverages industry are the major factors for a major shift from unpackaged vending to packaged forms of sale. Some other factors like exposure to new and improved packaging methods, relaxation in food and beverage import norms, increasing modern retail outlets and changing consumer preferences have all resulted in brand owners recognizing the need for advanced packaging solutions at economical cost. Packaging has served the Indian economy by lengthening and also preserving the shelf life of products ranging from milk and biscuits, processes and semi-processed foods, edible oil etc.

Market watch At present, the Indian packaging industry is valued at 17 billion USD, constituting roughly 4 per cent of the global packaging industry. Of this, processed food packaging bags almost half of the market share. The Indian subcontinent has immense potential. It is the fifth largest market for packaged food in the world and the second largest in Asia, second only to China. To meet the growing demand, investments in food processing and packaging machinery has been rising steadily. In 2015 alone, imports of packaging machinery amounted to roughly 293.6 million Euros, a 30 per cent increase. Of this, over 60 per cent constituted food processing equipment for confectionery, bakery products, beverages, fruit and vegetable processing. By 2020, it is speculated that India will become the third largest market for packaged goods in the world, after China and the United States. Packaged food sales predicted growth is 47 million tonnes from the current 34 million tonnes. This opens up a world of avenues for the packaging, processing, and food equipment industries. The packaging industry has exhibited muted growth over the last year, with a slowdown in industrial growth and drop in consumer demand. However, industrial analysts are

positive about growth in the next 12 months as they consider India’s low per capita packaging consumption regarding that of developed economies, increasing disposable incomes, growth packaged food market and a shift towards organised markets as the key growth factors. The outlook for new capital investment is also positive as most companies plan to invest in new manufacturing facilities to cater to increased demand. Going forward, packaging companies plan to focus on driving revenue and profitability through an emphasis on exports, improved customer service and increased production efficiencies. Further, with the implementation of GST from 1 July 2017, the packaging industry will witness higher growth, as demand across key end user industries is likely to increase. According to Research and Market report, during the period 2016-2021, the Soft Drinks and Food industries will be the highest packaging market share gainers (by units) with share growth of 3.4 per cent and 1.3 per cent respectively. The growing organized retail sector has been a significant driver of the growth of food and beverage industries, which in turn drives the growth of Indian packaging industry. In addition, innovations in the packaging industry, such as the development of lighter packaging with better barrier properties, add to the growth of packaging industry. In terms of packaging material, Glass and Rigid Plastics will be among the major share gainers, with share growth of 0.7 per cent and 0.6 per centrespectively during 2016-2021. Where Are the Opportunities? The Indian middle-class is an easy group to target, enticed by luxury food brands especially in confectionery products; think chocolates and biscuits. Demand is also catching on in fresh categories in the packaged food segment such as processed dairy products, frozen ready-to-eat foods, processed meat, and probiotic drinks.

The latest health fad unfolding across the urban landscape also opens up avenues in health drinks, vegetarian and vegan proteins, diet snacks, protein powders, and the likes. However, the urban markets are relatively rife with saturation and face stiff competition from foreign entrants. The rural markets on the other hand, housing almost 65% of the Indian populace, have room to grow for packaged food and beverages. Recent investments in rural areas have led to rising wages and exposure to urban trends. Smaller sized packages priced reasonably can attract more buyers for packaged goods. Given tropical climate of the country and surmounting heat, beverages i.e. carbonated soft drinks are likely to be a special hit among the rurals. This will translate into demand for beverage packaging equipment as well. Demand for automatic form-filling and sealing machines, tetra pack aseptic packaging machines for sterilized filling and packing of liquids, and testing instruments are anticipated to be high and have enormous opportunities. Some of the other prospects lie in machines that clean and dry containers, automatic labeling and capping machines, sealing machines, filling machines, packing/ wrapping machines, and moulding machines. Technology Adoption Innovation and rapid technological developments in food packaging have caught on like wild fire in other parts of the world. However, India has been slow to adopt some of these changes such as sustainable packaging, UV-ray protective packaging, antimicrobial packaging, oxygen and moisture scavenging, and the likes. Some Indian players have been venturing out to meet international packaging standards, but it has been infrequent given the unorganized nature of the sector. Additionally, the heavy capital requirements, poor credit facilities, and long gestation periods have been deterrents to quicker adoption of new technologies. Foreign Direct Investment (FDI) in this segment would be a major relief. At present, India imports most of its highly-automated machines and systems from Germany, Italy, Switzerland, and the United States. More capital could result in cheaper alternatives and better equipment due to shared interests. Emerging trends in packaging industry in 2017 The packaging industry took strides in more innovative, sustainable, holistic, technologically advanced and efficient directions. Realizing new opportunities in a variety of industries, as well as uncovering new challenges, members of the packaging world and beyond turned their heads towards advancements that would not only generate

Vol. 10, Issue 10 -March- 2018

TRENDY PACKAGING

will grow. Export-oriented manufacturers, in particular, favour high-tech solutions in order to meet the international standards and to be competitive. More than 80 per cent of total packaging in India constitutes rigid packaging. The remaining 20 per cent comprises flexible packaging. There are about 600-700 packaging machinery manufacturers, 95 per cent of which are in the small and medium sectors located all over India.

greater potential in materials, design, manufacturing, sourcing and end-of-life opportunities, but leveraging that potential throughout the value chain and across practices. Among these new challenges, opportunities and innovations in the industry today, here are the key trends that the industry leaders agree will be dominating influencers in the coming year: • Establishing a “one size fits all” ecommerce model – Since ecommerce has taken a major share of the retail market, we have seen the wild west emerge with a variety of online retailers, aggregators and digital distributors that come and go, attempting to write and rewrite the rules of rapidly emerging industry. With Amazon proving to have the most authority on what needs to be shipped, when, how and in what quantity, brands are having a difficult time fitting into their ecommerce model.

we shall see increased commercialization in tooling and manufacturing, moving beyond the already present prototypes – significantly cutting cost and saving time. Brand owners will begin collaborating more with new technology providers to evaluate improvements to their bottom line. Organizations will practice a more flexible model use of resources, essentially not needing to have all of that technology in house, but collaborate with partners who own this area. • Holistic packaging becoming the “new normal” – Product and packaging integration has been at the forefront of many conceptual

The dynamic development of Indian food and beverage industry is an ongoing process accompanied by significant investments in food processing and packaging machinery over the last few years. In 2015, Indian imports of foreign food processing and packaging machinery reached a new peak. Investments in foreign machines and equipment increased by 30 per cent and amounted to €734 million. Around 40 per cent of these imports were packaging machines, which were mainly imported from Italy and Germany. Sixty per cent of the Indian imports were processing equipment for different foodstuffs, e.g. for production of confectionery and bakery products, for beverage production as well as machines for fruit and vegetable processing. The main supplying countries of food processing machines for Indian industry depending on the sub-sectors are Germany, Italy, Switzerland and China.

• Commercialization of packaging innovations – As new more advanced and sustainably sourced and processed materials emerge, more industries will have the opportunity to bring clean label packaging to market. Examples include high pressure packaging technology, more replacement material coming to the market, active/ digital packaging and 3D printing. We’ll see strides in pharmaceutical packaging by way of traceability and tamper-alerts, as well as monitoring capabilities to ensure patient accountability. Through 3D printing,

Eco-friendly packaging The ideal packaging material should not possess any environmental issues and should have recycling potential. Eco-friendly packaging can play a key role in food waste avoidance to protect human health, environment and in preserving natural resources. Eco-friendly packaging materials have some extremely essential qualities like reduce, recycle, renew, reuse and repurpose. Flexible packaging Custom designed film, foil and paper based laminate for primary packaging of products in solid, liquid or powder form in consumer size packs comes under this category. From paper to cellophane plastic wrappers to aluminium foil to metalized and coextruded foils: the change has been quite rapid and new features are being built into the packaging material to add value for its customers. Advancement in technology has led to the propagation of metalized film (laminate and co-extrusion based) packaging material that combines the benefits of both metals and plastics. Apart from being more cost-effective, it offers versatility in the packaging material with improved protection against light, water, moisture and gases thereby increasing the aroma and shelf life of products. The metallic base allows for high gloss and eye-catching aesthetic packaging. The food sector uses a wide range of package material in various shapes and sizes. Flexible packaging accounted for 29 per cent of the total food & beverage packaging sector, followed by rigid plastics at 26 per cent. Globally, the industry has witnessed considerable new trends moving from simple pre-packaging to vacuumisation & gas-flushing, retort and aseptic systems, CAP/MAP, smart and intelligent packaging, and barcoding. However, in India value added packaging of food and beverage is relatively small and is yet to make deep inroads.

Traditional single SKU case shipments from brand owners are in quantities to stock shelves and sell through, but Amazon requires an “each” model as opposed to “stock,” which also increases complexity when cross-brand product bundles are required. This year we will see new packaging options and solutions to improve this important and growing drive to standardize packaging containers to handle shipping, as well processes to streamline distribution and enable cross-brand bundling. • Prioritizing food safety and reduction of food waste with new packaging technologies and processes – Global food waste is a growing concern among consumers which businesses continue to address, while cross-industry groups and influencers are leading initiatives across countries in order to improve food safety and reduce food waste. One critical area of focus is consumer education, and ensuring that those who sell and consume packaged food products understand their shelf life. In order to bridge the gap in communication, not only has new processing and packaging technology been developed to actually extend the shelf life of food, but technology built into packaging via freshness sensors will alert customers/ consumers regarding the shelf life of their food and when it is safe to consume in order to avoid early disposal and excessive purchasing.

functions (Sensing, detecting, tracing, recording and communicating) to facilitate decision making to extend shelf life, improve quality, enhance safety, provide information and warn about possible problems.

conversations in the industry for a few years now. As the holistic approach to packaging design becomes more and more relevant across different silos of a business, realizing its relevance from end-to-end, we will begin to see more application of holistic packaging design principles ensuring its consideration at the earliest product development stages rather than just concept discussion. New advances in packaging materials design as well as equipment and processing technologies has allowed more application to come to market, as well as a greater understanding of the need for fully integrated communication across value chain from marketing, branding, packaging, etc. to drive a singular goal. Indian packaging machinery sector as compared to international counterpart In Indian packaging industry, processed food packaging represents 48 per cent of the total. The per capita consumption of packaging in India is merely 4.3kg per person per annum. In comparison, Germany’s per capita packaging consumption is 42kg and that of Taiwan is 20kg. To meet the rising demand for processed and packaged food and beverages, companies have to expand their production, and as a result the demand for state-of-the art processing and packaging technology

Key market trends Number of methodologies of packaging technology for food has developed over the years. Active packaging, intelligent packaging and nanotechnology are some of the newly introduced concepts in the market. Packaging is the most important aspect of product design. There have been a lot of technological advancements in the industry but still innovation is the need of the hour. Active packaging It is an innovative packaging technology that involves incorporation of certain additives into packaging film or within packaging containers by which package, product and environment interact to prolong shelf life or enhance safety or sensory properties as well maintain the quality of the food product. Intelligent packaging This type of packaging is capable of carrying out intelligent

Sustainable packaging Reduction in material usage without compromising on product protection and reuse of packaging are the two main factors that are making sustainable packaging duly recognised among all stakeholders. FMCG companies are now widely adopting sustainable packaging technologies to reduce the cost of packaging as well as taking steps to ensure recycling of packaging material which also protects the environment.

Vol. 10, Issue 10 -March- 2018

TRENDY PACKAGING

Encounters The challenges that industry is facing today include lack of regulatory clarity in packaging, insufficient consumer awareness of sustainable packaging and uncertainty about green packaging materials. For raw and processed foods, India needs packaging material which is suitable to the country's climatic variations. The country's heat and high humidity are two problems that can reduce the shelf life of packaged goods. It would be particularly important to focus on the seals and maintaining their integrity. But more important than the climate is perhaps the lack of a good supply chain or refrigeration in retail outlets and at home. This is a big barrier to many of the packaged food formats familiar to consumers in the West. Some major initiatives in sustainable packaging taken by FMCG companies in India: Marico reduced its Parachute oil bottle to be 7% lighter and its cap to be 2% lighter compared to the nearest benchmark; Coco Cola has switched to 10% sugar-based ethanol to create plastic bottles which increases the use of renewable sources and reduces the carbon footprint. Some Innovative packaging by the Industry HUL has achieved 100% zero non-hazardous waste to landfill sites across 30 factories in India. HUL is also trying to create market value for discarded sachets and lighter plastic packaging so rag-pickers find incentive to collect them off the streets. Hindustan Unilever and Bharti Retail have launched the Go Recycle initiative in NCR region which promotes plastic recycling among consumers. Dabur and Tetra-Pak India

have come together to mobilize rag pickers to collect discarded packaging of food products. Nanotechnology is also gaining importance in the Indian food packaging industry. A Nano composite material not only improve the mechanical strength, reduces weight, increases resistance to heat and enhance barrier properties of the packaged product but also increases overall shelf life of product. Technology, price, delivery, and performance standards are some of the determining factors that for packaging equipment and decides whether it can be sold in the Indian market. There is an intense competition in the enduser market, the cost of equipment and low running cost remain one of the primary factors that influence the sale of the packaging equipment and thatâ&#x20AC;&#x2122;s why upgrading would be another extremely important factor in buying decision of Indian end-users.

At the same time, a heavy focus on cost means that cheaper flexible packaging formats are often chosen over rigid packs that may offer greater protection for the product but that would force a higher retail price.

increasing the shelf life of products, their proper implementation is still required. In the year 2020, packaged food sales will reach 47 million tonne. According to research forecasts, India will become the third-biggest market for packaged food in 2020, after China and the United States. The food packaging industry is Indiaâ&#x20AC;&#x2122;s fifth-largest sector with a current worth of nearly $40 billion. By 2020, it is expected to reach over $65 billion. With a per capita consumption of 24kg per year, the Indian packaged food market is still at an early age. Due to rising incomes, urban lifestyle changes and modern retail trade, the food packaging market will expand distinctly. As urban regions account for more than 80 per cent of the demand for packaged food, there is a huge growth potential in the semi-urban and rural regions.

Analysis Although food packaging sector in India has emerged as a high growth and high profit sector due to its immense potential for value addition, still the industry is hugely dependent on imports. Also, initiatives have been taken by the government and food industry towards decreasing the wastage and

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Vol. 10, Issue 10 -March- 2018

NEWS

Canada looks for trade opportunities with India had taken up agriculture as a priority sector, and provides all necessary support to increase farmers’ income through better market and value addition to their produce. “For decades, farmers in Bengal have had little or no say in choosing markets or buyers for selling their produce.”

ndia holds excellent opportunities for growth in trade as several foreign countries look to invest here. At the 6th Agro Protech 2018, organised by the Indian Chamber of Commerce in Kolkata, it was evident as the country has tremendous potential to expand trade relations and create new opportunities for farmers. Agriculture and Forestry Minister of Alberta, Canada, Oneil Carlier said India is one of the world’s largest and most diverse markets and one where he believes there is tremendous growth potential for Alberta’s ‘high-quality food and agricultural products’. “Canada is one of the largest agricultural producers and exporters in the world. Quite a lot of barley is grown in Alberta. There are 1,700 barley producers growing 2.4 ton per year. Alberta can provide expertise in food processing technology, biotechnology, energy efficiency, food packaging, and food safety practices.” West Bengal Law and Labour Minister Moloy Ghatak, also present there, said the state

The Mamata Banerjee government has introduced various schemes like the kisan credit card and kisan bazar to help farmers with financial support against low interest. More bank branches will be opened in the rural areas to provide long-term low interest loans to the farmers. Prof Swapan Dutta, Agricultural Scientist and former Pro Vice Chancellor, Viswa Bharati University, said that production of crops in India is being challenged by increasing population, lack of land for cultivation, volatile prices, environmental concerns and rising expectations from consumers.

Vol. 10, Issue 10 -March- 2018

NEWS

Vidya Dairy, Anand has been awarded by two distinguished orgarnisations for Excellence in Financial Reporting. On behalf of Vidya Dairy DR Shah, Managing Director, Vidya Dairy received SAFA Award from Tanka Mani Sharma, Auditor General of Nepal at Kathmandu on 31.01.2018. Ashutosh Shukla (Executive) & Kalpesh Patel (Asstt. Executive) received ICAI Plaque award from M. Damodaran, Former Chairman, Securities and Exchange Board of India (SEBI) during glittering function held in Mumbai .

idya Dairy, Anand has been awarded by two distinguished organization for excellence in financial reporting. One from South Asian Federation of Accountants (SAFA) for being 2nd Runner up in Best Presented Annual Report Awards for the year 2016 under the category Non Governmental Organisations and another award from Institute of Chartered Accountants of India for being winner of the Plaque under the same category for the year 2016-17.

This begins with the understanding that food and beverage containers are an important part of people’s modern lives but that there is much more to be done to reduce packaging waste globally. President and CEO of Coca-Cola Company, James Quincey said “the world has a packaging problem – and, like all companies, we have a responsibility to help solve it. Through our World Without Waste vision, we are investing in our planet and our packaging to help make this problem a thing of the past.” By 2030, for every bottle or can the Coca-Cola system sells globally, we aim to help take one back so it has more than one life. The company is investing its marketing dollars and skills behind this 100 per cent collection goal to help people understand what, how and where to recycle. We will support collection of packaging across the industry, including bottles and cans from other companies. The Coca-Cola system will work with local communities, industry partners, our customers, and consumers to help address issues like packaging litter and marine debris. Coca-Cola Company will continuously work towards making all of its packaging 100 per cent recyclable globally. The company will build bottles, whether through more recycled content, by developing plant-based resins, or reduce plastic amount in each container. The goal is to set a new global standard for beverage packaging. ‘World Without Waste’ is the next step in the company’s ongoing sustainability efforts, building off success in replenishing an estimated 100 per cent of the water it uses in its final beverages. The company achieved and exceeded its water replenishment goal in 2015, five years ahead of expectations. These efforts are part of the company’s larger

akers of sugary drinks and processed foods are struggling to boost sales to increasingly health-conscious and penny-pinching consumers, forcing them to slash costs to beef up bottom lines and look for deals to stimulate growth. The challenges were laid bare as industry giants Kraft Heinz, Coca-Cola and Danone revealed fourth-quarter results that showed shoppers turning away from products that delighted earlier generations from processed cheese slices to cola cans loaded with 39 grams of sugar in favour of cheaper store brands or healthier offerings. There is no question that financial performance in 2017 of food companies has not reflected their potential.

Coca-Cola announces new global vision ‘World Without Waste’ with innovative packaging ith a goal to live a world where is less waste production, Coca-Cola Company announced that it is reshaping their packaging approach, to help collect and recycle the equivalent of 100 per cent of its packaging by 2030. This objective is the centerpiece of the company’s new packaging vision for a ‘World Without Waste’.

Food industry giants struggle to keep up with changing tastes

strategy to grow with conscience, by becoming a total beverage company that grows the right way. Quincey said “Companies like ours must be leaders. Consumers around the world care about our planet, and they want and expect companies to take action. That’s exactly what we’re going to do, and we invite others to join us on this critical journey. Bottles and cans should not harm our planet, and a litter-free world is possible,” Coca-Cola Company will work to achieve these goals with the help of several global partners: the Ellen MacArthur Foundation’s New Plastics Economy initiative, The Ocean Conservancy/Trash Free Seas Alliance and World Wildlife Fund (The Cascading Materials Vision and Bioplastic Feedstock Alliance). Coca-Cola will also launch efforts with new partners at regional and local level and plans to work with its key customers to help motivate consumers to recycle more packaging.

beverage companies fared worse. Campbell Soup reported organic sales fell 2 per cent in the fourth quarter, weighed by weak demand for its trademark soups in North America. Nestlé, the world’s biggest food group, on Thursday revealed that last year’s sales grew at their slowest rate in more than two decades. Danone, the French yoghurt and Water Company, said like-for-like sales grew 2.5 per cent in 2017, the slowest pace in 20 years. Analysts have suggested that consolidation is inevitable this year as the incumbents’ battle for sales. There was a pattern seen through the whole of 2017 with the entire food and beverage sector and the entire industry has been a little slow to recognise it.

The changes in tastes have forced the world’s biggest food and drinks companies to shift towards newer products favoured by younger consumers.

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Coca-Cola, which reported soft drink sales at a 31-year low, still was able to post a 6 per cent rise in organic sales nearly double analyst forecasts — with help from vitamin water, tea products and other drinks it has added to its offerings, often through acquisitions. Coca-Cola, the world’s biggest fizzy drinks company, aims to save $3bn by next year as part of a cost-cutting plan. It reported adjusted earnings of 39 cents a share in the fourth quarter, just above the 38 cents analysts expected. Other food and

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Vol. 10, Issue 10 -March- 2018

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Vol. 10, Issue 10 -March- 2018

NEWS

‘Localized packaging’ – key to attract consumers

oday food and beverage companies introduced innovation in their campaigns and packaging, attracting many young consumers. Packaging plays a significant role in the product marketing. Several food and beverage players resort to new packaging approach with words printed in local languages and connect better with regional markets. Chief Executive at digital and social media agency said “The packaging connects with the consumer at point of sale (PoS) as it has an immediate ‘pick me up’ value. With attention spans getting shorter, brands devise innovative ways to package

and market their products to young consumers. Packaging-driven campaigns not only create buzz around a product, they also gets shared on social media platforms.” An innovation in packaging has to bring about transformational change in appearance, usage and convenience. A variety of words like nautanki, princess etc are printed on the limited edition of chocolates are being promoted across media platforms. Snickers has replaced its logo for a limited period with words which represent hunger symptoms like cranky or moody on its packaging, is selling these chocolate bars in more than 100 cities. The company rusn a multi-media cam-

Ferrero looks to capture Indian chocolate market pie

hocolate consumption in India is gradually witnessing an increase as there are many variants available in the market today. Though some big players like Mondelez, Nestle and few prominent names who have succeeded in capturing significant market share in India. Ferrero recently acquired Nestle’s US confectionery business making them the third largest company in global chocolate market with global sales above $12 billion. Nevertheless, the company looks to grab Indian chocolate market as well. Despite its presence since 2008, Ferrero India is yet to capture a significant share. Whereas Mondelez holds 65 per cent share of the chocolate segment in the country. Managing Director, Ferrero India, Stefano Pelle said “In the past growth used to be organic, but in the last couple of years, Ferrero Group has acquired few companies in various countries. The group is today open to inorganic growth and this may also apply to our geographies. I cannot say

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anything about specific impact of such acquisitions on the Indian business. Ferrero’s acquisition of Nestle’s confectionery business is currently within the US market and will help increase its overall footprint in this market.” However, Ferrero is not taking advantage of the relaxed FDI norms for single brand retailing. “We do not see an immediate interest in getting into retailing in India. Apart from a few exceptions, we prefer manufacturing and selling rather than retailing in India,” Pelle said. The largest selling brand in its portfolio in India, Kinder Joy and its toys, are manufactured at its base in Baramati near Pune. Infact, India has emerged as the second largest manufacturing hub for its Kinder Joy Toys. The facility is also used to export to its other markets. Ferrero is optimistic about the Indian market though at present they do not have a stronghold in this region. The Indian market is now one of the world’s fastest growing chocolate confectionery markets with a strong CAGR of 18 per cent.

paign across television, digital, outdoor (OOH) and print as well as in-store promotions. General Manager, India and Indian sub-continent, Mars Chocolate Ltd, Andrew Leakey said “Consumers are looking for closer connection with the brands. They want products as well as branded content which is share-worthy. They are also looking for social currency which allows them to connect with friends and family.” Director Marketing—Pepsi, PepsiCo India, Raj Rishi Singh said “This year, we took our philosophy of living in the moment a step further through the Pepsi Moments campaign as a way to celebrate the country’s millennial as well as Pepsi’s strongest

asset—our packaging. This was a one-of-its-kind packaging innovation where every pack spoke to consumers, in a language that was both contextual and relevant in that region.” Pepsi has created unique packaging for festivals like Onam, Ganesh Chaturthi, Navratri, Durga Puja and Diwali. Director at Bisleri International Pvt. Ltd, Anjana Ghosh said localised packaging also helps brands tackle counterfeits. A large number of consumers in our country are not comfortable with English. Bisleri bottles will carry the brand name in both English and local language to ensure that the end consumer gets Bisleri when he asks for it and does not mistake any other brand for Bisleri.”

Vol. 10, Issue 10 -March- 2018

WMNC GLIMPSES

Scattered Mithai & Namkeen Sector Comes under one Roof-FSNM

On the lines of Milk Promotion Council & Egg Promotion Council FSNM will also promote a united brand of Mithai & Namkeen among the consumers & to share the nutritional aspects of these food products via electronic & print media and national and international events and shows.

ederation of Sweets and Namkeen Manufacturers (FSNM) along with AIM Events rolled down the carpet for Indian & global namkeen and sweets manufacturers, allied sectors at‘World Mithai & Namkeen Convention (WMNC) 2018’, held at Hotel Eros,New Delhi on February 10th. More than 800 visitors and 300 delegates witnessed the grand show of WMNC. Eminent dignitaries of namkeen and sweets sectors gathered on a platform to discuss the issues regularly ascending in their business.“The convention provides unprecedented opportunities to allied sectors of our industry by giving them tremendous prospects of growth”,said Manohar Lal Agrawal CMD Haldiram’s and mentor of FSNM in his inaugural note. Focusing on the challenges of industry, desi snacks giant MD said that the past year with GST experience was not good and the council has kept us in high tax slab. Claiming WMNC as the best opportunity for industry, Shyam Sundar Agrawal - CMD Bikanervala said that the bridge was needed to fill the gap between manufacturers and allied industries of the country and this convention is now an expressway for us. Virendra Jain, FSNM President in his welcome note said that “every day, we face new challenges in doing business and FSNM has been able to deal with them for benefit of the trade and industry. Today manufacturers in Rajasthan can dream of supplying in MP or West Bengal. Similarly, due to increase in demand of quality & hygienic products from consumer has opened new avenues for raw material, ingredients suppliers and food safety system providers. This convention has provided unprecedented opportunity for allied sectors to meet the whole industry, manufacturers and others.” Tech Session This event proved significant for the industry as panel discussions and presentations on several matters related to this segment were covered during the seminar. More than 300

the state representatives and associations should write for the change in GST slab to the government at the same time i.e. will send similar draft across the country in different states. If different states apply for this change at the same time, and then the government might accept it accordingly, mentioned.

delegates from around the country attended the power pack seminar. Topics like technological advancements in mithai & namkeen industry, choosing right ingredients for the products, global packaging trends, food safety and challenges in mithai & namkeen segment and other issues were discussed. MD of VKC, Gunjan Jain, Vipin Aggarwal COO Saffron Packers, Area Marketing Manager-India of Roquette - Jatin Sharma elaborated on various details during the first session – ‘Modern Ingredients for Ethnic Foods. Following which there was a session on Role of Automation & Modern Technologies in Snacks Industry. Speaker Manoj Paul- Country & South Asia Head Heat and Control, Sanjeev Gupta – MD of Kanchan Metals Pvt ltd., KK Menon - MD MTS Foods, Varun Bajaj of Maschinenfabrik shared the dais and focused on recent advancements adopted by the industry. Decision taken by federation in AGM The committee members in the meeting of FSNM discussed GST and other issues which the industry is facing. Amit Kumat, MD Prataap Snacks proposed that GST slab should be kept at 5 per cent with input credit seconded by Bikanervala CMD. In a major discussion, FSNM has decided that if the government increases GST rates from 12 to 15 per cent, Federation members will keep themselves at lowest slab of 5 per cent with input. It is noted that input is the vital part of GST concept and FSNM will try to keep input credit. Shrinivas Raja of Adyar Ananda Bhavan stated that all

Treasurer of FSNM,Firoz H Naqvi voiced that branded products give out complete information regarding the traceability, nutritional value & safety measures. On the other hand, a non-branded product doesn’t provide any specific information still they are paying input credit. It was decided that it is better if non-branded products should be discouraged by the government and should come under same GST slab. Thus, to avoid unhealthy competition, they should be discouraged. Committee members focused on safety standard claiming namkeen as food of common man. D K Gupta of KP Das & Co said that it is important to make the safety standards easier & more understandable to people specially to the rural crowd as the consumer demands for namkeen is increasing. Shyam Sunder Aggarwal and Manohar Lal Agrawal said that food safety is an important issue hence it has become vital that labs for testing samples of Mithai & Namkeen should be established by the committee. Biggies stressed that as different labs show different results of the same sample, so there is a need to establish a lab specifically for Mithai & Nankeen industry. Two labs should be established one in North India & oth-

er in the Western region. These labs must be approved & accredited by FSSAI and fully run by FSNM. He said FSNM and its members will fund this testing lab. To keep safety standard on its peak, FSNM decided to make ‘Food Safety Committee’ with Amit Kumat, Srinivasa Raja, Ashok Chheda, Manish Agarwal, Vikram Agarwal & Firoz H Naqvi. These people will interact with FSSAI about industry related issues. Committee of five members including Bipin Hadwani, Sandeep Sawlani, Vikram Agarwal, Virendra Jain & Firoz H Naqvi will soon draft the constitution of FSNM. It was decided to make the website of FSNM where information of the members, food safety regulations, the government policies and laws, updates, etc should be displayed so that it will be easier for the Mithai & Namkeen manufacturers to understand the various aspects of the industry as well as policies. FSNM will soon link up its contact with APEDA for the promotion of Mithai & Namkeen industry in abroad due to the ever-increasing consumer demand. Committee is also planning to establish a board like Tea Board & Coffee Board for Mithai & Namkeen. For the assurance of quality product, Shiv Ratan Agarwal proposed that the FSNM

Vol. 10, Issue 10 -March- 2018

WMNC GLIMPSES

be updated on the website or an app. With the help of this data, members will not appoint wrong people in their factories. Manoharlal Agarwal, Virendra Jain, Srinivasa Raja, Ashok Chheda, Shyam Sunder Aggarwal, Amit Kumat, Sandeep Sawlani, Kunal Jain, Vikram Agarwal, D.K Gupta, Sunil Dutt Kathuria, Vasudev Chawla, Bipin Hadwani and other members of FSNM committee were present for the first AGM.

should start giving its logo for the printing on packaging on the lines of SFA. Federation President stressed on need to celebrate a National Mithai & Namkeen Day to promote the products and nutritional aspects of the mithai and namkeen in media.On the lines of Milk Promotion Council & Egg Promotion Council FSNM will also promote a united brand of Mithai & Namkeen among the consumers & to share the nutritional aspects of these food products via electronic & print media and national and international events and shows. Shyam Sunder Aggarwal briefed the committee about a training institute to be set up on the lines of ITI with the help of government to train the workforce for Mithai & Namkeen industry. The courses offered would be certified courses. He also stated that FSNM should also communicate with different hotel management institutions to include these courses among full time courses & crash courses. It was decided and discussed in detail to estab-

lish an exclusive training institution fully run by FSNM for providing skilled man power to this sector. A separate fund will be collected to establish the same institution. Later Vice President of FSNM Vasudev Chawla proposed that FSNM needs to link up its contact with APEDA for the promotion of Mithai & Namkeen industry in abroad due to the ever-increasing consumer demand. Hence, a board like Tea Board & Coffee Board should be established for Mithai & Namkeen as well. FSNM members demanded to maintain data of namkeen and mithai industry. Firoz Naqvi stated that a state-wise data should be maintained which would include the data of industries right from small scale to big multinationals. Also, a comprehensive study of the industry size, issues & growth was needed to be studied by the committee. Further, there was a discussion on data pool to be main-

tained of the laborers employed in the factories of members. Vikas Jain briefed members about the need to maintain a data pool of black listed laborers; this information will

Food safety is an important issue hence it has become vital that labs for testing samples of Mithai & Namkeen should be established by the committee. Different labs show different results of the same sample, so there is a need to establish a lab specifically for Mithai & Nankeen industry. Two labs should be established one in North India & other in the Western region. These labs must be approved & accredited by FSSAI and fully run by FSNM. Business Opportunities The first ever show of its kind provided the

Vol. 10, Issue 10 -March- 2018

WMNC GLIMPSES

best business opportunities for manufacturers and allied industries as all were present on the same platform. Companies like Testo India, Uma Polymers, Osho Industries, Bakewell Machines, MTS Foods, BW Flexible Systems, Levia Technologies, Saffron.Tatva. Almond, VS International, Alpha Milkfoods, Chandigarh Sweets, Adinath Flexipack, Das Electronics, Kap Cones, Fibrepack, Multivack, Laraon, Dynamech Engineers, Parmanand & Sons, Technofour Electronics, Anoop( G.C.Company), Madhusudan Ghee, Nichrome India, VKC Nuts, BBL Foods, Grace Foods Processing and Packaging, Heat and Control, Balaji Dry Fruits, Rajdhani Flour Mills, Kanchan Metals, Sphere International, Shanti Creation, Fabcon, Saurabh Flexipack, Ultraplast Chain Belt and Karishma Metals participated in the show. WMNC Experiences Various players from snacks and sweet indus-

try attended the World & Mithai Namkeen Convention held in New Delhi. Read on to know what the attendees had to say about WMNC:

India?s Only Monthly Newspaper for Food, Beverage & Allied Sectors

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Month

Issue

Exhibition Name

March 2018

Event Focus

Aahaar

June 2018

Event Focus

Anniversary Issue (June 2018)

July 2018

Event Focus

Packplus

August 2018

Event Focus

SnackBev India

September 2018

Event Focus

(13th-17th March 2018) New Delhi India

G. Chandrashekhar, Editor of Hindu Business Line complimented the organizers of World Mithai and Namkeen Convention 2018 as it was one-of-its kind and first in India ushering in a great new beginning for Indian snack industry.The potential for snack market is large and is driven by rising incomes, growing population, and evolving

addition possibilities and several niches to service.A nutrition market is developing in this country and the snack industry must seize the opportunity. Categories such as kids’ food, geriatric food, food for sports persons (energy bars) and so on are set to become popular. He added that, “There are challenges that need to be addressed including compliance, traceability, and supply chain efficiencies. I am sanguine that the Indian snack industry is set to go places in the years ahead; and events such as the one held on February 10, 2018 in New Delhi are important to provide a neutral platform to industry participants.” “I thank organising team for the courtesy extended to me during the meeting at World Mithai & Namkeen Convention on 10th Feb 2018 at Hotel Eros, New Delhi”, DGM - Business Development - Rinac India Ltd, Kr. Vijay Singh. Head of Marketing, Uma Polymers Anirudh Malhotra congratulated FSNM and organising team. He said,“It was an excellent experience to be a part of this event and I wish you all the best for future.”

(25th-28th July 2018) New Delhi

st nd (31-2 August-September 2018) Bangalore

FI India th (11 September2018) New Delhi

Interna�onal Foodtech (27th-29th September 2018) Mumbai

AnnaPoorna (27th-29th September 2018) Mumbai

October 2018

Event Focus

Indian Ice Cream Congress & Expo (8th-9th October 2018) Chennai

Drink Technology (24th-26th October 2018) Mumbai

November 2018

Event Focus

December 2018

Event Focus

Gulfood Manufacturing (8th-November 2018) Dubai

Indian Cold Chain December 2018 Mumbai

food habits. As a keynote speaker, I was happy to share huge potential of the domestic snack market as well as export opportunities. The snack market provides immense value

Director of Kanchan Metals Pvt Ltd, Sanjeev Gupta commented that WMNC was a good event and well organised and was glad that he participated in it. Industry planning to celebrate ‘National Mithai & Namkeen Day’ for the promotion of products and nutritional aspects of the mithai and namkeen in media.

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S.V Agri conveyed heartiest congratulations on the success of such a wonderful event for the snacks and sweets industry. Abhishek said it was a pleasure to be part of the event and hear such amazing panels. This is as an opportunity to connect with manufacturers, machinery suppliers and academic institutions. To summarise it in a few lines, he said“we understood the pressing need of this industry to have vocational training specific to the industry among other things. Our existing profile enables us to play a pivotal role in this and we will love to take this forward. We also seek your help in connecting us to the emerging snacks players in the industry, so we can work at a much larger level.” Application Chef MKN, Varun Bajaj stated that the event was well-planned and executed. He expressed gratitude that WMNC gave him the opportunity to share platform with great personalities.

Vol. 10, Issue 10 -March- 2018

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Vol. 10, Issue 10 -March- 2018

NEWS

More Than A Brand Change Minebea Intec is the new name for leading industrial measurement and inspection technology

artorius Intec has changed its name to Minebea Intec. This rebranding was the next logical step after having joined at that time the Minebea Group in the year 2015. Mohan Bhat Managing Director

The Minebea Intec product portfolio includes industrial scales, process vessel and silo scales, checkweighers, metal detectors, X-ray inspection systems, process software solutions and aftersales-services. Via the company’s global presence, it stands beside its customers around the globe throughout the entire life cycle of its products and solutions, from assistance with selecting the right equipment, design-in support, installation and calibration, maintenance and repair services, through to embracing equipment upgrades and refurbishments and providing comprehensive user

trainings. President of Sales, Marketing & Service, Peter Grimley, said: “We have used the rebranding exercise as an opportunity to make improvements – from major investment in the area of research and development to the expansion of the sales and service footprint combined with a completely new brand image and intuitive product design. The company’s service commitment is unequivocal. ‘We make daily life safer’ is both a standard we set for ourselves and a promise to customers and consumers around the world. Meanwhile the company slogan ‘The true measure’ underlines our position as a leading global supplier of products and solutions and the way in which we strive to set strong standards in all areas of the company.” The company has almost 70 years’ experience in supporting industry to ensure that manufactured goods have the right quality and do not contain any foreign bodies. The ability to do this is based on the ‘German Quality’ of its products and services combined with

Peter Grimley President Sales, Marketing & Service

a continuous investment in developing leading technology. As a result, tens of thousands of customers put their trust in Minebea Intec having enabled them to supply millions of products and solutions during their long history.

The Japanese parent group is a global manufacturer of precision electromechanical components, supplying products to various industries. With the new brand Minebea Mitsumi, the company recently announced a new corporate logo following business integration between Minebea Co., Ltd. (Minebea) and Mitsumi Electric Co., Ltd. (Mitsumi). The continued objective of Minebea Mitsumi inc. is to introduce new value through Electro Mechanics Solutions™ in a society where everything will be connected via the Internet of

Things (IoT). In India the company has recently expanded in new, spacious facilities in Bengaluru. Managing Director of Minebea Intec, Mohan Bhat underlines, The Minebea Intec office and production facility at Peenya Industrial Area, Bangalore

“We have now additional space to assemble larger quantities of our Minebea Intec inspection products. Also, as per current planning, we will be starting production of MinebeaMitsumi products by Q3 of 2017, catering to the automotive sector.” Minebea Intec has around 1,000 employees as well as production and sales & service facilities in 17 countries around the globe. In India the

Our comprehensive product portfolio for the food industry

company has 148 employees with a production facility measuring about 38,000 sq ft with 29,000 sq ft purely for manufacturing process. Minebea Intec in India produces among other products the proven in motion checkweigher Econus

Rs 100-crore investment by Constantia Flexibles for Ahmedabad plant

arikh Packaging has been part of Constantia Flexibles since 2013 already has a production unit in Ahmedabad, including rotogravure printing machines, PE extruders, various lamination technologies and pouch making. The factory is ISO-certified and serves with more than 500 qualified employees for the domestic and global food and home and personal care markets. Constantia Flexibles has announced an investment of Rs 100-crore in the expansion of production capacity at Parikh Packaging, in Ahmedabad, Gujarat. The company already did their ground-breaking ceremony in mid-2017, on a new greenfield site close to existing production facility at Parikh.

Minebea Intec India Pvt Ltd No. 26D, Peenya Industrial Area, II Phase Bengaluru - 560 058 Phone: +91.80.6720 0200 Email : contact.india@minebea-intec.com

The site is currently under construction and meets the highest international environmental, hygiene and work safety standards. It will be home to a polyethylene blown film extruder, high-definition flexo printing press and laminators that will produce high barrier laminates that can be fully recycled. The extra capacity will come on stream in 2019. It will serve the growing demand from leading multinationals in the food and home and personal care (HPC) industries in India. Executive Vice-President of the food division at Constantia Flexibles, Stefan Grote said “Our investment strengthens Parikh Packaging’s credentials as a leading provider of innovation and service to customers in the Indian subcontinent. Major FMCGs are demanding the highest level of sustainability for their packaging material and they will have to comply with the upcoming Indian Plastic Waste Management (PWM) regulations that promote only fully recyclable flexible packaging.”

Vol. 10, Issue 10 -March- 2018

EDITOR

CONSULTING EDITOR

Firoz H. Naqvi

Basma Husain

MARKETING EXECUTIVE Varsha Singh

PRODUCTION MANAGER Syed Shahnawaz

GENERAL MANAGER Gyanandra Trivedi

CIRCULATION MANAGER Seema Shaikh

GRAPHIC DESIGNER Naved H. Kazmi

121, 1st Floor, Rassaz, Multiplex, Mira road (E) Thane -401107. Tel: +91-22-28115068/28555069. Email:info@agronfoodprocessing.com Website: www.agronfoodprocessing.com Printed, Published By - Firoz Haider Naqvi, RNI No- MAHENG13830 Printed at: Roller Act Press Services, A-83 Ground Floor, Naraina Industrial Area, Phase-1, New Delhi-110028, Reg Office : 103, Amar Jyot Apts, Pooja Nagar, Mira Rd (E) Thane-401107, Delhi Office-F-14/1, Shahin Baugh, Kalandi Kunj Rd, New Delhi-110025 The views expressed in this issue are those of the contributors and not necessarily those of the newspaper though every care has been taken to ensure the accuracy and authenticity of information, "Beverages & Food Processing Times" is however not responsible for damages caused by misinterpretation of information expressed and implied within the pages of this issue. All disputes are to be referred to Mumbai jurisdiction