The Return of White Revolution
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Fast Food FĂŞte
Fast growth for cheap eat Pg 18 Innovations Keep Food Processing Conveyors Flexible Pg 24 Fabcon Is At Forefront Providing State of Art Conveying Solutions For Food Industry
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Pg 55 Global Demand For Food Processing Machinery On The Rise
Vol. 09, Issue 03, January, 2014
Vol. 09, Issue 03, January, 2014
Vol. 09, Issue 03, January, 2014
Vol. 09, Issue 03, January, 2014
Vol. 09, Issue 03, January, 2014
Editorial From the Desk of Editor
ndia’s economic growth in the current fiscal year will likely remain flat at 5 per cent, Prime Minister Manmohan Singh sanguinely stated. Singh’s forecast is more optimistic than those of several private economists, who are predicting growth in the year to March 2014 to slip down. Oddly the pace of economic expansion in Asia’s third largest economy hit a decade-low of 5 per cent in the last fiscal year. Amid the low hit of GDP, the food processing industry may touch Rs 4 lakh crore next fiscal from Rs 3.3 lakh crore in FY’12. And this industry doing wonderfully is likely to contribute 6.5 per cent of the GDP by FY’15. The sector attracted $1.97 billion worth FDI from April 2000 to July 2013. Opportunities in the food processing industry are significant. While there is very low level of food processing as compared with the western countries, domestic and export demand exist and are growing. Increasing urbanization and rise in disposable incomes are expected to push demand for processed food further. These factors gauge space in the market for these goods and potential growth for existing or new players in the space. The sector also possesses the potential to reduce the burden of subsidies and raise the farmers’ incomes simultaneously. On growth potential of non-alcoholic beverages sector, major players are planning to invest around USD 10 billion by 2020 in this segment and advocated reforms at state level to make the sector globally competitive. The processed food industry has some issues with existing tax structure. ...I am hopeful that the implementation of the proposed single goods and services tax (GST) will be beneficial for this sector. Only allowing foreign direct investment (FDI) in multi-brand retail alone cannot bring down inflation or help to streamline the supply chain, as has been envisaged by the government. It will depend on whether a GST is implemented and how the food processing sector in general and the non-alcoholic beverage sector in particular is treated under the GST. The treatment of the sector has to be such that it faces uniform low tax and other fiscal and regulatory barriers to the inter-state movement of goods are addressed. There is still not much clarity on how food products would be treated under the proposed indirect tax regime GST. The industry may wish to have all food products exempted from GST, but that is unlikely. In my sense, it is better that food products are covered under GST and let the prices of mass consuming goods be kept lower or else the purpose of GST will be defeated.
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India’s food processing industry is expected to hit Rs 4, 00,000 crore by next fiscal. The industry was worth Rs 3, 30,000 crore in 2011-12, according to the latest available data. The sector grew at a compounded growth rate of 9% between 2008 and 2012, much above the 3% growth rate for agriculture. Increasing organised retail penetration and the government’s proposed mega food parks will encourage business expansions in the food processing sector, which will ensure higher realisation for farmers and a reduction in wastages. Around 30% of the country’s food produce gets wasted annually mainly due to the lack of adequate post-harvest infrastructural facilities and inefficient supply chain management. Only 7% of commodities sold by farmers are graded before sale. The unreasonably long supply chain results in a sharp rise in the total cost, factoring in procurement, transit and other taxes and service charges levied at various stages. So farmers get only 25-60% of what the consumer pays for the produce, the report said, adding that improving supply chain can benefit the consumers and producers by 20-25%. Indian food value chain is on the verge of a great transformation? From one characterised by high wastage, low processing and low global contribution to one that is more streamlined, more integrated and more significant in the global trade. Continuous financial and regulatory support from government, increasing participation of private and public corporate, and increasing exposure of foreign players is likely to spur investments in developing the infrastructure across the value chain right from farm inputs to the consumers. 8
Vol. 09, Issue 03, January, 2014
Contents Fast Food FĂŞte Pg 10
The Return of White Revolution
Innovations Keep Food Processing Conveyors Flexible
Fast growth for cheap eat Pg 15
Fabcon Is At Forefront Providing State of Art Conveying Solutions For Food Industry
Global Demand For Food Processing Machinery On The Rise
1. NEWS 28 - 30 2. Food Processing News 31 - 33 3. Corporate News 34 - 35 4. Dairy News 36 - 38 5. Biscuit & Bakery News 43 - 44 6. Beverages News 45 - 46 7. Meat & Poultry News 52 - 53 8. Agri Business News Vol. 09, Issue 03, January, 2014
40, 41, 48 & 49
The Return of White Revolution
airy activities have traditionally been integral to Indiaâ€™s rural economy. The country is the worldâ€™s largest producer of dairy products and also their largest consumer. Almost its entire produce is consumed in the domestic market and the country is neither an importer nor an exporter, except in a marginal sense. Despite being the worldâ€™s largest producer, the dairy sector is by and large in the primitive stage of development and modernization. Though India may boast of a 200 million cattle population, the average output of an Indian cow is only one seventh of its American counterpart.
Indian breeds of cows are considered inferior in terms of productivity. Moreover, the sector is plagued with various other impediments like shortage of fodder, its poor quality, dismal transportation facilities and a poorly developed cold chain infrastructure. As a result, the supply side lacks in elasticity that is expected of it. On the demand side, the situation is buoyant. With the sustained growth of the Indian economy and a consequent rise in the purchasing power during the last two decades, more and more people today are able to afford milk and various other dairy products. This trend is expected to 10
continue with the sector experiencing a robust growth in demand in the short and medium run. If the impediments in the way of growth and development are left unaddressed, India is likely to face a serious supply - demand mismatch and it may gradually turn into a substantial importer of milk and milk products. Fortunately, the government and other stakeholders seem to be alive to the situation and efforts to increase milk production have been intensified. Transformations in the sector are being induced by factors like new found interest on the part of the organized sector, new markets, easy credit facilities, dairy Vol. 09, Issue 03, January, 2014
Dairy friendly policies by the government, etc. Dairy farming is now evolving from just an agrarian way of life to a professionally managed industry - the Indian dairy industry. With these positive signals, there is hope that the sector may eventually march towards another white revolution. GOING STRONG India dairy is emerging as a strong consumption story, with the market growing at a pace. This trend will gain momentum over the next 4-5 years driven by increasing consumption of valueadded products and the formalisation of the value chain. According to Rabobank expects this segment to grow at a CAGR of 13 to 15% until 2019-20. The market share of value-added products is likely to increase to 31% from the current 21% during this time period. The country’s total organised diary sector is about $10 billion in 2012-13, comprising cooperatives and private players who control the supply chain linkages. For years, the Indian dairy market has remained an enigma for global dairy players; however, the market is in a transition phase. High market growth and favourable market conditions may make now the right time for global players to engage with the Indian dairy sector. India’s large consumption market, its existing milk supplies and established consumer preference for dairy products, has encouraged global dairy companies to engage with India in the past. But the challenging environment, with its informal fragmented supply chain, raw milk quality concerns, small base for value-added dairy products and everchanging trade regulations, proved a challenge and a strong disincentive. Nonetheless, India’s formal dairy market has shown strong growth in recent years, which is likely to accelerate due to product innovation, enabling government policies and industry consolidation. It is anticipated that this acceleration will help improve industry margins by attaining greater scale, higher capacity utilization and an increasing contribution from value-added products in total dairy revenues. While the dairy market in India is not for every company, considering the Vol. 09, Issue 03, January, 2014
challenges, many global companies should now be revisiting their Indian dairy strategy. It is the right time to join the game, even on a small scale, through starting a strategic dialogue on Indian dairy. THE KEY ROLE OF PRIVATE SECTOR India’s dairy sector growth in the past two decades has been mainly due to the private sector. India produced over 127 million tonnes (mt) of milk in 2011-12, as against 58 mt recorded for 199293. The base year is important, for that was when the dairy industry was delicensed and the private sector allowed to freely establish capacities, subject to registration and other regulatory requirements under the Milk and Milk Products Order, 1992.
Till that happened, the country hardly had any large organised private dairies, barring the odd Nestle India or Milkfood Ltd. But after 1992, a host of small and medium corporates entered the business. The new entrants Today, apart from the two abovementioned names, there are at least seven other private sector players — Hatsun Agro, Heritage Foods, Tirumala Milk Products, VRS Foods, Sterling Agro Industries, Dynamix Dairy Industries and Bhole Baba Dairy Industries — each handling 10 lakh litres per day (llpd) or more of milk. In addition, there are a host of others — including Parag Milk Foods, Prabhat Dairy, Chitale Dairy, Dodla Dairy, Creamline Dairy Products, SMC Foods,
Dairy come about without any subsidies or Operation Flood programme support. The processing capacities created have largely been on the strength of risk capital and entrepreneurial initiative — and with hardly any investment from multinationals! As regards the cooperatives, the NDDB data shows that out of their total average milk procurement of 287.06 lakh kg per day in 2011-12, more than 51 per cent was accounted for by two federations: Gujarat’s Amul (104.5) and Karnataka’s Nandini (42.77). In 2000-01, their share was only 39 per cent, which points to cooperatives facing virtual extinction or stagnation in most other States, especially the Hindi heartland or ‘Cow Belt’. Two things emerge from this analysis. Without handouts The remarkable thing about this The first is that the country’s milk output growth of private dairies is that it has has more than doubled since 1992-93. Modern Industries and Gopaljee Dairy Foods — doing between 5 and 10 llpd. Last year, cooperative dairies put together procured an average 280 llpd of milk, whereas the organised private industry, covering those handling 50,000 litres and upwards, would have accounted for 350 llpd or more. That works out to a 55:45 ratio in favour of private dairies. The private sector having overtaken the cooperatives today is a fact implicitly admitted even by the National Dairy Development Board (NDDB). To quote from its Annual Report of 2010-11 (page 8): “It is estimated that the capacity created by them (private dairies) in the last 15 years equals that set up by cooperatives in over 30 years.
Coming on a higher base, it is a spectacular achievement — no less compared to the increase from 22.2 mt to 58 mt registered between 1970-71 and 1992-93. That, of course, coincided with Operation Flood, launched in 1970. But unlike the Operation Flood programme built around cooperatives, much of the production growth and creation of fresh processing capacities after 1992-93 has been powered by the private sector. Downbeat treatment What is unfortunate, though, is the refusal of our policymakers to acknowledge this fact. The contribution by organised private dairies to the recent growth of India’s dairy sector is yet to be fully recognized, leave alone incorporated into the official policymaking framework. It is precisely the inability to reconcile to the new reality that explains why the corporate sector has been left out of the National Dairy Plan (NDP) — a Central scheme aimed at increasing the productivity of our milch animals to keep up with rising domestic milk demand. This plan, being implemented by NDDB, envisages an investment of Rs 2,242 crore during 2011-12 to 201617. The NDP covers only cooperatives or so-called producer companies, and not private dairies wanting to invest in backend extension and development activity — genetic upgradation of the cows or buffaloes being milked, improving fodder and feeding practices, teaching farmers to take better care of the health and nutrition of their animals, and promoting selective mechanization to save on labour. There is no logic to exclude the private sector from any plan that seeks to make dairies work closer with their farmersuppliers. Yet, the official indifference to private dairies extends even to dayto-day policy decision-making. Take the ban on export of milk powder and casein imposed twice in the last five years, alongside permitting import of up to one lakh tonnes of powder at zero duty. The export ban especially impacted private dairies, who had worked hard to develop export markets only to find this window closing all of a sudden. And what has been the result? Only the other day, the Government declared that cooperatives alone are Vol. 09, Issue 03, January, 2014
saddled with 1.12 lakh tonnes of powder stocks, equivalent to more than 40 days of their total milk procurement. To bail them out, the Centre is now giving a subsidy of Rs 20/kg for converting the entire surplus powder into milk, which can then be re-processed back into powder to enable longer shelf-life. Wouldn’t it have made better sense, instead, to extend the same subsidy on exports, so that surplus powder — whether produced by cooperatives or private dairies — goes out of the country? That would, then, induce dairies to procure more milk rather than turning farmers down. You can’t really blame dairies for resorting to that, when skimmed milk powder prices have collapsed from Rs 180 to Rs 140/kg in the last one year.
sector. Milk, after all, is one produce that is easily marketable and is a great source of liquidity for meeting the day-to-day consumption needs of rural households. Its price is relatively stable and doesn’t spring surprises compared to the volatility exhibited by most other crops. Also, it is produced in almost every State, irrespective of the agro-climatic regime, and we have — thanks to the original model developed by Verghese Kurien and tailored to our conditions — systems for collecting milk from millions of fragmented producers. A new vision for the Indian dairy sector would mean doing away with knee-jerk export bans or skewed policies benefiting only cooperatives, such as doling out a Rs 2/litre subsidy on milk procurement
A new dairy vision We desperately need a new vision for Indian dairying today that takes into account all its different stakeholders, including private dairies. All of us will have to work together to develop this Vol. 09, Issue 03, January, 2014
(which the Karnataka Government does) or a Rs 20/kg reprocessing subsidy on powder (as recently announced by the Centre). Neither consumer nor farmers benefit from policies that only protect and preserve inefficient cooperative monopolies. FOREIGN ENTRY Expecting fast growth in value-added dairy products such as cheese and milk, foreign entities have started looking at India as a dairy product market. Of the top 20 dairy companies in the world, six have already set foot in India in some way or the other many others are gauging the market, considering options to enter, although the market here is very complex. Rabobank expects value added dairy products such as yogurt, paneer, cheese, ice cream and baby food to grow at a CAGR (compound annual growth rate) of 20 to 30 per cent in the next four to five years. Apart from Danone Food and Beverages (India), no one has yet set up production base in India. Danone, too, is outsourcing parts of its production, while New Zealand’s Fonterra is exploring possibilities of tying up with local partners. Outsourcing of production would only help local players.” In 2012-13, India’s formal dairy market size was $10 billion. The formal market comprises organised players such as co
Dairy operatives and private entities which control the supply chain linkages. Rabobank expects this segment to grow at a CAGR of 13 to 15 per cent until 2019-20. The foreign players opt for a partnership model with local ones, and not go for direct procurement from farmers. They focus on high-end value-added products like flavoured yogurt, very popular in the international market. Right now, 90-95 per cent of the Indian market is traditional liquid milk and the remaining is valueadded products. Entries of foreign players drive demand in this segment and open the value-added products segment for Indian players as well. Most local entities feel foreign dairy players taking interest in the market help open it further. However, most foreign players are not keen on backward integration; they prefer tying up with local players for production and focus on marketing and distribution. Thanks to the rise in disposable income, there is heightened consumer interest in higher protein diets. With entities paying attention to this segment, the sector is set
to grow further over the years. Organised retail selling of value-added dairy products and the food service segment has helped the sector grow. Plus, the growth of food and coffee chains such as Cafe Coffee Day, Pizza Hut, Dominos, KFC and McDonald’s are expected to help increase the consumption of valueadded dairy products. Production growth in the milk segment has been around 4 per cent CAGR in the past few years. In comparison, consumption growth has been expanding at 11 per cent CAGR and the Indian market would continue to grow for the next 20-25 years. After China, India is a very big dairy market. With growth in their homemarkets becoming static, foreign players need to crack another big market, which is India. While local entities are not worried about the entry of foreign players they, are wary of the impact of the proposed free trade agreement (FTA) with the European Union (EU). They strongly oppose the FTA with EU, and foreign players should not come through that route. It will only
lead to dumping of dairy products in the Indian market. In India, cooperatives will still hold a large share in the organised dairy market in the coming years with some small regional entities still managing to have a strong hold. That way, organised dairy industry will still likely be the smallest formal dairy market of the BRIC countries by 2017in value terms, a Rabobank report noted. Currently, 70-80 per cent of milk is procured from small and marginal farmers. Rabobank expects this procurement pattern of milk to continue over the next decade as well. Foreign players might find this challenging and it will take some time for them to be successful in India. The white revolution has returned in India. As the Milky Way is opening new vistas new entrant are enhancing its market. With private sector winning over the market and foreign companies coming in, the Indian dairy industry is seeing new era and innovative diversity. As claimed at the top – the white revolution is back.
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FAST FOOD FÊTE Fast growth for cheap eat
ndia’s fast-food market is growing quickly, but margins are getting tighter as restaurant costs rise. Amid an economic slowdown, it seems India’s consumers will still give themselves a cheap treat. International and domestic fast-food chains are growing rapidly, catering to India’s young and increasingly wealthy population. Yet with the market still dominated by small stalls, restaurants are struggling to keep prices low enough to benefit from the mouth-watering opportunities. According to a study from research firm Crisil, India’s quick-service restaurant business will double in just three years, from Rs34bn (US$550m) in the 2012-13 fiscal year (ending March 31st 2013) to around Rs70bn in 2015-16. And things
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will only get better. The Economist Intelligence Unit estimates that the number of households with annual earnings over US$5,000 will spike from an alreadylarge 81m in 2013 to 172m in 2017, while private consumption per head will almost double from US$918 in 2013 to US$1,743 in 2017. India also offers a wealth of young people, a key market for fast-food chains. Over 60% of India’s current population is younger than 30 years old, and are welcoming of international brands. The fast food industry will benefit from other factors as well, such as increases in nuclear families, single-person households and the proportion of women in the workforce; as well as changing lifestyles and eating patterns. 15
With markets in the US and Europe offering only slow growth, and China respectably penetrated by the big international chains, India offers the next big opportunity. Domino’s Pizza (US), which recently opened its 600th restaurant in India, says India is its fastest-growing market and its second-largest single country operation outside of the US. Of the 500-odd new restaurants it opened in 2012 worldwide, 23% were in India. According to Crisil, foreign brands have grabbed 63% share of the India QSR market since McDonald’s opened its first Indian outlet in 1996. Within the foreign segment, Domino’s Pizza dominates with a 20% share, followed by Subway (12%), McDonald’s (11%), Kentucky Fried Chicken (9%) and Pizza Hut (8%).
Fast Food Yet those figures only count the organised market. According to the National Restaurant Association of India, over 80% of the foodservice sector is unorganized. So international companies have only taken a big share of a small pie. With so much territory left to conquer, fast-food chains are expanding fast. Hard castle Restaurants, which runs McDonald’s business in west and south India, plans to spend Rs3bn (US$50m) to add 75-100 new restaurants within two years to McDonald’s current 240-outlet network. Jubilant Foodworks, which holds the master franchise for Domino’s Pizza and Dunkin Donuts in India, will invest Rs2.5bn this fiscal year to add 125 Domino’s stores and 18 Dunkin Donuts outlets. Yum! Brands, which owns KFC, Pizza Hut and Taco Bell, also plans to increase its total restaurants in India to 1,000 by 2015, from about 600 currently. Local players such as Faaso’s, Jumbo King and Kaati Zone are also growing quickly. Faaso’s, which began offering its Indian wraps a decade ago and now has 53 outlets, says it will grow to compete with global franchises. Jumbo king, which sells ‘vadapav’ a fried potato dumpling in a bun, a common roadside treat, aims to grow its 43 outlets to 200 by 2015. Crisil says that much of the predicted growth will come from new stores, especially in smaller cities. Over the next three years, it says new store additions will grow 16%-18% a year. Nearly half of those outlets will be in smaller cities, which currently account for 25% of total stores. Having already established their presence and strong branding in big cities, large international players are now pursuing the lower rentals, limited competition and higher growth that smaller cities offer. Budget burgers Yet as they rush to expand, fast-food companies face a menu of challenges. For one thing, their costs are rising. India’s commercial real estate price growth is among the worlds fastest, while high inflation is pushing up input costs like fuel for home deliveries, and food (onion prices rose an eye-watering 245% in the past year). But as India’s economic slowdown dampens consumer sentiment, companies must keep prices low to woo budget-conscious customers: Faaso’s has not raised prices in a year, preferring to lose gross margins instead.
As Crisil warns, while new stores will grow the overall industry, same-store sales growth will decline considerably. McDonald’s Hard castle, for example, says that its same-store sales growth fell from 22% in 2012 to 6.2% this year. In response, companies are focusing on value and better cost management. Yum! Brands, for example, are increasing the synergies between its three brands, by sharing key resources such as warehouse and distribution capabilities. Lessons learnt internationally may help: McDonald’s began setting up a robust supply chain system in India six years before its actual entry. It says this, coupled with backward integration up to the farm level, helps it absorb some price rises. To compete better, Indian players like Jumbo king have adopted international models such as centralized kitchens and supply chains. Yet global models, and menus, must also be tailored to local tastes. Domino’s been quick to style several options for Indian preferences, while McDonald’s serves neither beef nor pork in India, and developed an eggless mayonnaise for vegetarian customers and spicier options for Indian palates. Managing local partnerships is also difficult, but crucial given the franchising
model most fast-food chains use. McDonald’s is currently involved in a dispute with Vikram Bakshi, the managing director and co-owner of Connaught Plaza Restaurants, the joint venture that runs McDonald’s outlets in north and east India. McDonald’s removed Mr Bakshi in August 2013, allegedly because it was dissatisfied with his performance. However, Mr Bakshi counterclaims that McDonald’s is trying to edge him out of their joint success after he turned down their 2008 offer to buy him out, and that it favors its other franchise partner Hardcastle. Perhaps the biggest challenge of all is the intensifying competition, as local and international players all vie for real estate and customers, while new players like Burger King mull an entry. The hope is that the appetite of India’s consumers is big enough to sustain them all. Creative offering Indians are known to enjoy eating out and with busy lifestyles taking over, fast food as a concept has found easy acceptance. But in order to survive, brands need to constantly reinvent themselves. From concept restaurants, special offers, to localized menus and marketing gimmicks, international fast food chains have tried
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Fast Food it all to attract and retain customers. Yum restaurants, one of the established fast food chains in the country recently launched its fourth Taco Bell restaurant in Bangalore. Based on the visual kitchen concept, this restaurant has a unique appeal and has found favour with the youth in the city. Yum is known for customizing its offerings to suit local tastes and providing good customer service. After the success of KFC and Pizza Hut, Taco Bell is the third restaurant concept introduced by the Yum chain. India is a key growth market that holds tremendous potential for MNC Fast food chain. India business has been making incredible progress, laying the foundation for similar key emerging markets, where consuming class is likely to double in five years. The wide-ranging menus now are not only westernized but are set according to the customers taste and requirement. Yum has perfected the art of penetrating
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local markets and wooing customers around the world. Taco Bell has been specifically targeted at the youth and has succeeded in attracting the young crowd in Bangalore. With a target to launch 1000 stores in India by the year 2015, this ingenious new Taco Bell store is set to give consumers an all new fast food experience with a menu that offers a variety of unique formats and bold flavours – a true food adventure. Yum’s competing brand McDonald’s is also capitalizing on the Indian market’s love for fast food with its own strategy. It wishes to become the ‘King of Out-ofHome Breakfast’ segment. McDonald’s introduced the breakfast concept in India and is targeting a growth of 30-35 per cent this year on the back of their breakfast strategy as compared to 20 per cent last year. The company has set aside a six per cent marketing spend of the overall sales for this year, which would include five per cent of direct marketing and one per cent of promotions. There is a growing demand for outof-home breakfast options in India but it lies underutilized because of the lack of options in the market. McDonald’s has 300 stores in India out of which 150 will offer the ‘Breakfast Menu’. Riding on its success so far, Yum is now planning to expand to tier II and tier III cities where the demand for such fast food options is higher than in the metros. Fast food chains clearly have their work cut out in the coming months. Small cities and fastfood The domestic fast food market is estimated to double from the current Rs 3,400 crore in the 17
next three years, largely driven by demand from smaller cities, according to a report given by Crisil. The quick service restaurant (QSR) sector is one of the sectors that have managed to grow even during the economic slowdown. The QSR market will more than double to around Rs 7,000 crore by 2015-16 from Rs 3,400 in 2012-13, driven largely by new store additions,” the report said, adding most of the new stores will come up in the tier smaller cities. Over the next three years, new store additions will increase by 16-18 per cent annually, propelled by the rapid expansion of global players into smaller cities Crisil said. Currently, smaller cities account for just about 25 per cent of total stores, in the next three years; however, nearly 40-45 per cent of store additions will take place in these cities. It observed that global brands currently constitute 63 per cent of the total QSR market and will continue to grow on the back of expansion into smaller cities. In value terms, pizzas, burgers and sandwiches still account for 83 per cent of the QSR market. Players have found it relatively difficult to adapt local food into an assembly line production model. On the other hand, foreign cuisine can be served quickly, and is more amenable to cold storage formats and a centralized kitchen. McDonalds and Domino’s Pizza have shown over the years that consumers are comfortable with Western fast food,” Crisil research reports. It also finds that the amount spent by the middle income households on QSR is likely to be higher in smaller cities compared to the metropolitan cities. In large cities, it is expected that the annual QSR spend per middle class household to rise by over 1.5 times to around Rs 6,000 by 2015-16 from about Rs 3,700 in 2012-13, while in smaller cities, this is less than half at around Rs 1,500 in smaller cities. But, growth is expected to be much higher in smaller cities, at about 2.5 times to Rs 3,700 by 2015-16. The fast food market is growing and more and more of young generation are accepting and enjoying it, leading to development of the fast food bazaar. This has increased the market size not only in the metropolitans but in small towns in India there by increasing the cumulative fast food size and market.
KEEP FOOD PROCESSING CONVEYORS FLEXIBLE
Luckily for food manufacturers, conveyor technology has not stood still. A number of vendors have introduced innovations that move the technology that moves your products.
pipes or ducts called transportation lines that carry mixture of materials and a stream of air. These materials are such as dry pulverized or free flowing or light powdery materials like cement, fly ash etc. These materials can be transported conveniently to various destinations by means of a stream of high velocity air through pipe lines. Products are moved through various tubes via air pressure, allowing for extra vertical versatility. Pneumatic conveyors are either carrier systems or dilute-phase systems; carrier systems simply push items from one entry point to one exit point, such as the money-exchanging tubes used at a bank drive-through window. Dilute-phase systems use push-pull pressure to guide materials through various entry and/or exit points. It is important to note that air compressors, vacuums, or blowers can BASIC TYPES OF CONVEYER SYSTEM be used to generate the air. This will all depend on what the engineers think will USED IN INDUSTRIES be the most efficient and economical way Pneumatic conveyor systems Every pneumatic system makes use of of developing the system. Three basic UNDERSTANDING CONVEYER SYSTEMS Conveyor system is a common piece of mechanical handling equipment that moves materials from one location to another. Conveyors are especially useful in applications involving the transportation of heavy or bulky materials. Conveyor systems allow quick and efficient transportation for a wide variety of materials, which make them very popular in the material handling and packaging industries. Many kinds of conveying systems are available, and are used according to the various needs of different industries. There are chain conveyors (floor and overhead)] as well. Chain conveyors consist of enclosed tracks, I-Beam, towline, power & free, and hand pushed trolleys.
systems that are used to generate high velocity air stream: Suction or vacuum systems, utilizing a vacuum created in the pipeline to draw the material with the surrounding air. The system operated at a low pressure, which is practically 0.4–0.5 atm below atmosphere, and is utilized mainly in conveying light free flowing materials. Pressure-type systems, in which a positive pressure is used to push material from one point to the next. The system is ideal for conveying material from one loading point to a number of unloading points. It operates at a pressure of 6 atm and upwards. Combination systems, in which a suction system is used to convey material from a number of loading points and a pressure system is employed to deliver it to a number of unloading points. Vibrating conveyor systems A Vibrating Conveyor is a machine with a solid conveying surface which is Vol. 09, Issue 03, January, 2014
Conveying turned up on the side to form a trough. They are used extensively in food grade applications where sanitation, wash down, and low maintenance are essential. Vibrating conveyors are also suitable for harsh, very hot, dirty, or corrosive environments. They can be used to convey newly cast metal parts which may reach upwards of 1,500 °F (820 °C). Due to the fixed nature of the conveying pans vibrating conveyors can also perform tasks such as sorting, screening, classifying and orienting parts. Vibrating conveyors have been built to convey material at angles exceeding 45° from horizontal using special pan shapes. Flat pans will convey most materials at a 5° Incline from horizontal line. Flexible conveyor systems The flexible conveyor is based on a conveyor beam in aluminium or stainless steel, with low friction slide rails guiding a plastic multi-flexing chain. Products to be conveyed travel directly on the conveyor, or on pallets/carriers. These conveyors can be worked around obstacles and keep production lines flowing. They are made at varying levels and can work in multiple environments. They are used in food packaging, case packing, and pharmaceutical industries but also in retail stores such as Wal-Mart and Kmart. Vertical conveyor systems and spiral conveyors Vertical conveyor - also commonly referred to as freight lifts and material lifts - are conveyor systems used to raise or lower materials to different levels of a facility during the handling process. Examples of these conveyors applied in the industrial assembly process include transporting materials to different floors. While similar in look to freight elevators, vertical conveyors are not equipped to transport people, only materials. Vertical lift conveyors contain two adjacent, parallel conveyors for simultaneous upward movement of adjacent surfaces of the parallel conveyors. One of the conveyors normally has spaced apart flites for transporting bulk food items. The dual conveyors rotate in opposite directions, but are operated from one gear box to insure equal belt speed. One of the conveyors is pivotally hinged Vol. 09, Issue 03, January, 2014
to the other conveyor for swinging the pivotally attached conveyor away from the remaining conveyor for access to the facing surfaces of the parallel conveyors. Vertical lift conveyors can be manually or automatically loaded and controlled. Almost all vertical conveyors can be systematically integrated with horizontal conveyors, since both of these conveyor systems work in tandem to create a cohesive material handling assembly line. In similarity to vertical conveyors, spiral conveyors raise and lower materials to different levels of a facility. In contrast, spiral conveyors are able to transport material loads in a continuous flow. Industries that require a higher output of materials - food and beverage, retail case packaging, pharmaceuticals - typically incorporate these conveyors into their systems over standard vertical conveyors due to their ability to facilitate high throughput. Most spiral conveyors also have a lower angle of incline or decline (11 degrees or less) to prevent sliding and tumbling during operation. Vertical conveyor with forks Just like spiral conveyors also a vertical conveyor that use forks are able to transport material loads in a continuous flow. With these forks the load can be taken from one horizontal conveyor and put down on another horizontal conveyor on a different level. By adding more forks more products can be lifted at the same time. Conventional vertical conveyors have the restriction that the input and output of material loads must have the same direction. By using forks many combinations of different input- and output levels in different directions are possible. A vertical conveyor with forks can even be used as a vertical sorter. Compared to a spiral conveyor a vertical conveyor - with or without forks - takes up less space. Heavy duty roller conveyors Heavy Duty roller conveyors are used for moving items that are at least 500 lbs. This type of conveyor makes the handling of such heavy equipment/products easier and more time effective. Many of the heavy duty roller conveyors can move as fast as 75 feet/minute. Other types of heavy duty roller conveyors 19
are gravity roller conveyor, chain driven live roller conveyor, pallet accumulation conveyor, multi-strand chain conveyor, and chain & roller transfers. Gravity roller conveyors are extremely easy to use and are used in many different types of industries such as automotive and retail. Chain driven live roller conveyors are used for single or bi-directional material handling. Large heavy loads are moved by chain driven live roller conveyors. Pallet accumulation conveyors are powered through a mechanical clutch. This is used instead of individually powered and controlled sections of conveyors. Multi-strand chain conveyors are used for double pitch roller chains. Products that cannot be moved on traditional roller conveyors can be moved by a multistrand chain conveyor. Chain & roller conveyors are short runs of two or more strands of double pitch chain conveyor built into a chain driven line roller conveyor. These pop up under the load and move the load off of the conveyor. CONVEYOR NOW FOCUSING MORE ON FOOD AND PLANT SAFETY Regardless of the product being made, conveyors move it through processing and packaging, and the conveyors used in food plants are being upgraded. Conveyors are the handmaidens of high-volume production. They lack the complexity of high-speed mixers and steam-jacketed kettles, but without conveyors, machine processes would become discreet processes, leaving manufacturers scrambling to transfer work-in-progress to the next step. In years past -- and, in rare cases, the present -- that transfer was done manually, adding the potential for human contact. Minimizing human interaction with the product is part of the justification for today’s automation projects. As a consequence, conveyors and their belts have been the focus of continuous improvement in hygienic design and cleanability. When a product goes from a transformational process to a conveying process, that’s where one have exposure to food safety risk. In recent months, several enhancements design has been
Conveying introduced to improve sanitation and reduce maintenance of its vibratory conveyors, the latest being the replacement of mechanical drives in its Iso-Flo line with a concentric electric motor mounted to the unit’s bed. The change eliminates lubricating oil and frayed drive belts in the food handling zone. Food safety concern is always growing, it’s important to answer the question of, “How do we stay ahead of the curve and address issues before customers raise them?” Lately, the answer has looked like a vibratory conveyor as cloth conveyors tend to fray and now is the time to eliminate all the risks and go for upgradation. A vibratory conveyor might not be the best choice for baked goods, but a horizontal unit that gently slides product could be a solution. The speed of horizontal conveyors can be modulated, compressing more products in less space as needed. For baked goods that must cool before packaging, that can mean a smaller footprint than a conventional belted conveyor. Serpents from down under On occasion, conveyors are integrated into the “transformational process,” as is the case with ovens fabricated by Auto-Bake, a Sydney, Australia, firm. Real estate availability can scuttle an installation, and the OEM’s solution is serpentine oven belts that shrink an oven’s linear footprint to almost a third of what’s needed for a conventional oven with comparable capacity. Another Auto-Bake innovation is an infeed design that allows bakers to remove depositors and other ancillary equipment for cleaning while swapping in duplicate components without a production break. Engineers also have eliminated many of the transfer points typically found in integrated lines. That’s where things go wrong causing product damage and downtime. Automated production comes to an abrupt halt when seamless product transfer doesn’t occur, which elevates the humble conveyor to the status of critical component. A concerted effort has been made to improve the sanitary design of belts and frames to eliminate harborage areas and optimize cleanability.
No-boom room Safety extends beyond food products and includes the people who work in plants. Explosions are a worker risk that became top of mind in the wake of 2008’s fatal accident at Imperial Sugar’s Savannah, Ga., mill. The disaster killed 14 and badly injured scores of other workers. A cascade of explosions caused the most devastation, but the blasts were triggered by an equipment explosion. Minute sugar particles pose a particular risk of ignition in a confined space, but many food particles, including flour dust, are below the sub-420 micron threshold for explosions. Unfortunately, National Fire Protection Assn. standards for explosion prevention can leave plants vulnerable when transporting flour. The standard excludes confined areas of less than 8 cubic feet. The manufacturer of vacuum conveyors is the first supplier in its category to receive ATEX certification for explosion proofing from TUV, the German equivalent of Underwriters Laboratories. Metal-tometal contact can ignite fine powders, Hayes says, and European standards account for that potential, whereas U.S. standards do not. Besides explosion proofing, his vacuum conveyor features all-stainless construction and a densephase vacuum system that results in less product degradation. INNOVATION IN FOOD INDUSTRY’S CONVEYER SYSTEMS For any class of ingredient, product or finished package, there’s a conveyor suited to move it down the line. Despite the many conveyance methods used to accomplish the task, there are common elements that reflect food processors’ needs. These include features and options that save space, foster safety and sanitation, reduce maintenance and downtime and preserve product integrity. Of course, in a well-managed process, features work in synergistic fashion so that fast, easy sanitation leads to reduced downtime; gentle product handling enhances product quality and reduces waste; and even space-saving equipment designs play a role in plant profitability when smart designs lead to faster installation and — as with the best innovations — the ability to do more with less. 20
Conveyor technology has not stood still. A number of vendors have introduced innovations that move the technology that moves your products. Some recent developments: Key Technology known for its vibratory conveyor systems, introduced a new kind of conveyor called the Horizon. The horizontal motion conveyor moves product with a new rolling mass technology-based drive that uses a gentle, gliding motion versus up-anddown vibratory motion. That minimizes breakage and coating loss to minimize product breakage. This makes it suitable for many fragile, seasoned, and coated and frozen food products, plus it prevents buildup on the conveyor. In addition to single-constituent streams, the sliding motion is ideal for mixes such as trail mix or granola, which can be conveyed without separation for a “strong assurance that within any given
Key Technology’s horizontal motion conveyor: the Horizon. package, you’re going to get very accurate results in a blended product. A maintenance - reducing “lube-forlife” drive that moves with the pan runs significantly quieter than vibratory models and can be mounted anywhere along the conveyor pan — even in front or underneath the pan. This, along with the flexibility to install the Horizon on the floor or suspend it from the ceiling, accommodates users’ space constraints. The drive system can move product at speeds up to 42 feet per minute on a single continuous conveyor up to 100 ft. long. Reverse-direction capability adds to the system’s flexibility. Another company stretching its technology is Bunting Magnetics (www. buntingmagnetics.com). The company uses its metal detector know-how for the Wash down Magnetic Transfer Conveyor, which features stainless steel for easy cleanup and reduced downtime in applications where processors need to move product up and through a plant Vol. 09, Issue 03, January, 2014
Conveying quickly, such as the transfer of full or empty cans throughout a process, from steam-based processes to filling stations and labeling machines. “It is perfect for can handling applications where there are changes in elevations. Indeed, the most common application for these conveyors is a high-speed can line, typically operating from 100 to 600 cans per minute. The magnetic provide proper spacing and positioning without product jams, because the design is simpler and less complicated than the typical nonmagnetic squeeze elevation conveyorst. Additionally, the wash-down model is the choice for sanitary requirements, which these conveyors meet with food-grade or sanitary stainless finish; food-grade belts; full wash-down motors and drives; and composite wash-down bearings. Design features include specially designed ceramic or rare earth magnets that stabilize the cans at high speeds and magnetic elements that are custommatched to the can size, weight and speed. Sanitary and wash-down features along with endless belting help make these conveyors maintenance free. For space savings, these conveyors provide a low profile transfer of lids or cans to filling stations where space is restricted and very tight. A different design in conveying is the tubular drag conveyor from Cablevey Conveyors (www.cablevey.com). They excel in the gentle handling of materials, including roasted whole bean coffee, cereal loops and flakes as well as nuts. This type of conveyor uses cable-driven, disc-shaped flights to pull product through closed, sanitary piping. The closed design protects the product from ambient conditions while containing dust from escaping. Also, the flights provide gentle handling to keep from crushing nuts or even tea leaves. Clean-In-place is fast and easy by virtue of the closed-loop design. The ability to install tubular drag conveyors in horizontal, vertical and curved configurations saves space and can eliminate the re-engineering of plants and processes. And with maximum motor size at 5 amps for the largest system, compared to traditional conveyors using 10 times the power, tubular drag conveyors greatly reduce power requirements as well as plant noise. Vol. 09, Issue 03, January, 2014
Cablevey keeps the beans flowing to the Probat-Burns coffee roaster at Apffel’s Coffee in Santa Fe Springs, Calif. Depending on the tubing size — diameters range from two to six inches — throughput ranges from 75 to 1,240 cubic feet per hour, moving product at an average speed of 100 ft. per minute for a low-speed but respectable throughput where more traditional systems might damage materials. The AquaPruf Stainless Steel conveyor platform from Dorner Manufacturing, (www.dornerconveyors.com), offers a convenient, sanitary option for plants that use curves in a wash-down environment. It’s primarily used to optimize available space in the processing area, where curves reduce the number of transfers, as well as to move product in and around equipment, pillars and other obstructions. The use of curves reduces the number of transfers required and therefore reduces the potential for product loss as well. The design of the curve sections is an improvement over traditional designs that use fasteners to remove the plastic chain hold-downs from the curve and this — combined with the platform’s tipup tail, clean-out windows and hygienic design — allows for fast and effective sanitation. The chain simply lifts out of the curve and the access to the inside of the conveyor frame is literally only seconds and requires no tools.” The “no tools” feature is a speed and sanitation claim to fame for this design. In operation, Dorner’s belting is held down on the outer edge and slides along 21
a guide strip on the inner edge. Tools have been eliminated because this design provides just enough tolerance to allow the user to push the chain from the inner edge toward the outer edge. This eliminates the need for fasteners to be used, which, in other designs, need to be in place during operation, and removed for cleaning or maintenance. At the end of the line is the bottom line. Food processing users must calculate their return on investment based on factors unique to their own operations. In doing so, it’s important to look well as beyond the mechanical footprint of the conveyor itself. In some applications, customers have calculated saving 30 to 40 production hours a year by incorporating AquaPruf Conveyors into their processing facilities, and the complex applications can also lead customers to consider water, energy and the chemical savings during sanitation. Recently this company has been sourced by some of the largest processors of almonds, peanuts and cereal globally. This has occurred after a lot of testing, trouble-shooting and responding to requests made by the processors. Obviously this is where a combination of close attention and customization come into play. Procter & Gamble installed a system in Mexico and reported that the system paid for itself in electricity costs alone within the first year. Another aspect to factor into specifications is flexibility. In addition to specifying the right systems, options and add-ons, processors must consider how a unit will effectively serve upstream and downstream production today and into the future. DRY LUBRICANTS CHANGING THE WAY BOTTLERS MAINTAIN CONVEYOR FUNCTIONALITY Gears and drives aren’t the only friction points in a beverage plant; new dry lubricants are helping bottling manufacturers maintain conveyor functionality. Pools of sudsy water under New Belgium Brewing’s bottle conveyors were a necessary evil until the craft brewer converted to a dry conveyor lubricant from Ecolab. Water conservation initiatives have
prompted thousands of bottlers worldwide to convert to dry conveyor lubricants in the past decade, although the human beings in those bottling halls may be the biggest beneficiaries of the change. Conveyor lubrication is needed to reduce friction between the belt and the bottle and to prevent breakable containers from colliding during conveying. Soapy water is the traditional solution, reducing the coefficient of friction but also creating rivulets of wastewater that become slipand-fall hazards. In 1975, BASF patented a cocktail of fatty acid soap plus a surfactant and monostearyl phosphate, and fatty amines, phosphate esters and dry emulsions followed. All resulted in slippery floors. Complicating the complexity of finding alternatives is the fact that different belt materials and bottle compositions require different lubricants. When PET bottles are exposed to a solution of phosphate ester, amine salt and non-ionic surfactant, for example, stress cracking can occur. In the mid-2000s, Ecolab USA Inc., St. Paul, Minn., introduced the first of a series of dry conveyor lubricants under the DryExx name. “DryExx was originally created for use with PET bottles and aluminium cans on plastic conveyor chains. Nearly all package types have successfully been filled and conveyed using dry lubricants, but glass on stainless steel is a particular challenge. For those bottlers, Ecolab developed DryExx GF. This is of particular interest outside the U.S. for use with returnable glass bottles. About the time DryExx debuted, Diversey introduced Dry Teck, which also was suitable for PET and aluminium but struggled to overcome the glass-onsteel problem. Now a division of Sealed Air Corp., Diversey is the successor organization to BASF. Unlike soft drink and juice bottlers, breweries rely on belt lubricants to clean
and flush away belt grime. Sealed Air’s Food Care Division, have been playing with Dicolube Sustain formulation for about three years to deliver both lubrication and good detergency. Few if any line speeds match those of major North American breweries. Several constituencies have to be satisfied with the results of trials before those bottlers will commit to dry lubricants. It’s a paradigm change for plants, besides maintaining line speeds and keeping the belts clean, potential impacts on the product have to be resolved. For example, a residue of silicone-based lube on the outside of a can or bottle could mix with the beer when poured. A slight residue can cause the head to break and make the beer look flat and breweries want nothing to do with that. To maintain detergent action, Sustain for breweries must be diluted with water, but in much lower volumes than conventional systems. Breweries typically consume 6 barrels of water for every barrel of finished product, with much of the waste generated by belt lubrication. By reducing lubrication water 60 percent or more, Sustain might lower the ratio to 3:1. Sustainable practices, not cost savings, are driving conversion. Retailers are getting to the point of demanding that food companies have water-saving KPIs in their plants in order to sell through their stores. Sustainable manufacturing has particular resonance with craft brewers. New Belgium Brewing Co., Fort Collins, Colo., began trials two years ago with Ecolab’s dry lubricant. Inductively coupled plasma spectrometry was used to quantify soil deposits on bottles from both dry and conventional soap lubricants. Mould will grow on conveyors and floors from soap foam, and the foam can wreak havoc with labelling machines. Water saving was a huge factor in the decisionmaking process but maintaining line speeds and keeping emulsions off the bottles also were concerns. Ultimately, the 22
brewery replaced its steel belts with plastic conveyors, slashing water consumption to 80,000 gallons from more than 1 million, and cleaning time was cut in half. Swapping dry lubricants for conventional conveyor lubes requires deft application control. Some back pressure is necessary to push bottles past a labeler, and even a 2-degree incline can cause bottles to slide back if too much lubricant is brushed or sprayed on the belt. Reduced water consumption and wastewater treatment are driving conversion, but less broken glass and fewer worker injuries are the silver linings of dry lubrication. CONCLUSION Food processors employ a wide variety of conveyors to keep product moving from point to point. The expectation for all of them is reliability and design features that enhance safety and minimize risk. Conveyor sellers as a whole have been doing a good job of following a trend toward modular equipment and controls as well as mechanicals. No matter the need, there’s always a system to suit today’s needs while flexing to meet tomorrows product, package and line configuration requirements.
Vol. 09, Issue 03, January, 2014
Vol. 09, Issue 03, January, 2014
Fabcon Is At Forefront Providing State of Art Conveying Solutions For Food Industry How important is the role of conveying systems in food & beverages industry? In today’s world, one cannot think of running a plant / industry without automation. Conveying forms a very important part of any industry for various application right from receipt of RM to processing, packaging & shipping. The need has been greatly realized by the F&B industry largely owing to various factors like: • Awareness about Food Safety & Hygiene • Food laws • Expanding capacities making impossible to handle the material movement manually • Acute shortage of manpower • Indiscipline from unskilled & semi skilled workforce creating need for automation which is a fool proof system & works as a GOOD SLAVE • Need to save costs by creating process efficiencies, cutting wastages & spillages, ensuring time saving by ensuring non-stop action, space saving as conveyors can be hung from roof & hence free the much needed floor area which costs heaven & earth • Applications in extreme temperatures / conditions like frying, roasting, flavouring etc where it’s impossible to have human intervention • Good conveying Solutions from experienced companies like Fabcon ensure that above objective are met in totality & ensure very fast paybacks
Fabcon is at forefront of providing state of art Conveying Solutions for complete Food Industry whether it is value addition industry like Snacks & Confectionary or AGRO industry. We are a 1 stop solution offering the entire basket of products that meet the various requirements that the industry has. Fabcon is India’s BIGGEST & BEST manufacturer of Z Shaped Bucket Elevator Distribution System & Flexible Screw Conveyor for Powder Handling Applications. Fabcon can easily be called the leader in Conveying technology when we talk about Food Industry We are having an approximate 30 per cent YOY growth & are doing our best to do even better by ensuring that we are one up in terms of identifying the next pattern of requirement from the Industry, continuously improving on our products & offering innovative features that can charm the end user in terms of not just working but also aesthetics & safety. We are continuously investing in our setup in terms of equipment & workforce to be able to deliver the industry requirements. I feel that the Conveying Business in Food & Agro industry is going to move forward at a good pace for next few years to come as in the industry & this is evident from the way all the big companies are making fresh investment in Food industry. We participate in various exhibitions to interact with end user one-on-one to understand what their current & near future requirements are & we plan our business accordingly.
Nishant Bansal journey under guidance of our Chairman, Er Rakesh Bansal. Mr Bansal identified the potential that the Conveying Business has & started working with the Automobile industry for their conveying needs. In early 1990’s, Fabcon entered the food business by using the above experience & getting the chance from respected Sh. Manoharlal Agarwal Ji (Chairman Haldiram Group) to improve the materials handling situation at their Delhi plant as Import Substitution & Warehouse applications. The Journey continues... Fabcon has invested heavily in its two manufacturing units to acquire latest technology / equipment so that we can offer world class solutions & quality at very Indian prices. Our workshop is well equipped with CNC machines to ensure excellent quality & finishing by using the GBB (glass bead blasting) technique to ensure the same quality & aesthetics as the imported equipment. Our skilled team is another feather in our cap and we keep updating their skill set by arranging training & seminars etc on periodic basis.
How important is Quality of conveying belts in food industry and what are the strictures one should follow before going for the same for food products? Food safety & hygiene is by far the most important aspect at all times while developing conveyor system for food industry! Quality of conveying belt is very important in particularly in food industry. Conveyor and processing belts are often in direct contact with food and therefore are a What kind of demand you expect from Please brief us about your company, critical element in the food processing chain. the Indian food & beverages industry in its RnD setup and expertise in To objective is to ensure that the end product future and what is the present status conveying belts/systems? / food is be free from microbiological, of your company in this industry? Almost 35 years ago, Fabcon started its physical or chemical contamination. There 24
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Exclusive Interview are restrictions for using chemicals and related products in a food manufacturing company & we use belts, components that are food safe, FDA & CE certified that ensure the quality of product as per the standards. Belts used by us from some of the best companies in world (100% European & American) conform to FDA , GMP, REACH and HACCP compliance. Food grade belts should have superb resistance to hydrolysis and good release characteristics and have high reliable hygienic manufacturing standards. What are the different types of conveying systems available in the market? Conveying in simple terms is Non Stop Movement from one point to another. There is no one way to do this & can be done in many methods. However, Fabcon works by understanding the situation in totality along with the objective of installing the conveyor & then suggest best possible solution. The most common conveying systems available can be broadly classified as: • Belt conveyors • Bucket elevators • Screw conveyors • Vibratory conveyors
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Fabcon has a very wide range of products that suit various applications for any process line. Our expertise (for which we are known in the industry) is from our trademark products; • Z shaped Bucket Elevator Distribution System that ensures trouble free distribution of any product to multiple points in process & packing applications • Flexible Screw Conveyor for handling of any powder, granule in varying quantities from few kgs to over 20,000 kgs an hour in the most efficient, safe & effective manner by using the technology from our UK based Joint Venture partners, M/S Spiroflow • Vibratory Feeders for controlled feed in various applications, especially packing • Spiral Conveying for warehouse applications by using the technology from our Swiss based Joint Venture partners, M/S Denipro • Other customized solutions basis the specific application & area of use • Demand of conveying system varies customer to customer according to their needs, is it possible to make tailor made conveying systems? How
do you deal with this requirement? As they say, there is no 1 ring that can perfectly fit all fingers. Similarly, in order to offer the perfect solution, we have to custom built the system. While the base equipment may remain same, it has to be engineered basis the exact requirement in terms of application, user needs, layout, upstream & downstream equipment, level of automation, level of skills possessed by the end user (generally the operator on shop floor) etc. More than 80% of our solutions are customized to meet the exact requirement from our esteemed buyers. This also involves integrating our equipment with the existing machines, mostly foreign equipment used in food processing etc. Fabcon has a very skilled team that ensures 100% compatibility with customer requirement. Right from the 1st discussion by our sales team member to the very capable engineer who executes a perfect commissioning at site, we ensure a smooth “3S” setup of Sales, Supply & Support. We use latest engineering tools & software to comply with customer requirements, get approval from them & in most cases from their overseas vendors of main equipment as well.
Vol. 09, Issue 03, January, 2014
Keep snacks crisp and fresh ... longer
Moisture-free dry air for packaged snacks Dry air prevents moisture regain during processing, storage and packaging
Write to us today for cost effective solutions ISO 9001:2008 & 14001:2004 CERTIFIED
Phone: +91 11 23906777 • E-Mail: email@example.com
Vol. 09, Issue 03, January, 2014
News Krones transfers its valve technology business to new subsidiary, EVOGUARD GmbH
rones, the world’s market leader for beverage filling and packaging technology, has founded Evoguard GmbH to operate its valve technology business on a standalone basis.Evoguard GmbH is located in Nittenau, Germany, and is owned
100% by Krones AG. The company started its business operations in Nittenau at the beginning of January 2014. Krones began to develop its own series of innovative valves that are optimally matched to the needs of the food and beverage industry as well as the dairy sector under the name of Evoguard several years ago. Thanks to long years of experience in valve development and an extensive knowledge of its customers’ requirements, Krones is now able to offer a complete, cuttingedge product range that is not only an attractive proposition for the food, beverage and dairy industries but also
ideally suited for the pharmaceutical and biotech sectors. In order to accelerate sales growth in sectors outside the food and beverage industry, Kronesh as spun off its valve technology operations from its core business into a stand-alone unit. As an independent and autonomous company, Evoguard GmbH is benefiting from a favourable cost structure, high flexibility, and the efficient decisionmaking of a streamlined management structure. Evoguard valves are produced in Nittenau, where the 4,000m2production and administration building houses the R&D, design, sales and assembly operations. In the years ahead, Evoguard will provide reliable components and quality “Made in Germany” to modern production facilities of existing and new customers and achieve profitable growth.
Profile Select Metal Detector Boosts Flexibility on Food Processing Lines
emand for convenience foods in both Europe and Asia is growing strongly as consumers seek convenient, onthe-go products perfectly aligned with their hectic modern lifestyles. Food producers seeking to tap into this lucrative market are greatly expanding the range of products they produce on their processing lines, necessitating the installation of flexible product inspection solutions. For this reason, Mettler-Toledo, a leading global manufacturer of precision instruments, is seeing strong demand for its Safeline Profile Select variable frequency metal detector, due to this detector’s ability to inspect multiple types of products on one single line. This supports food producers as they increase the quantity and variety of products they are producing and inspecting for metal contaminants. Designed with flexibility in mind, the Profile Select’s unique Product Clustering Function allows food producers to run their processing lines at optimal speeds, as they can use a single detection frequency setting for groups of multiple products with similar moisture content. Simplified product changeovers further support this
flexibility, reducing downtime and the risk of operational error. Visual vector diagrams are displayed, demonstrating the signal generated by each product, as well as the active product inspection settings in use. This facilitates product set-up for operators, allowing them to easily tune the metal detection settings to ensure accurate results. With its advanced Variable Frequency technology, the Profile Select can also ensure optimised product inspection sensitivity for both dry and wet products such as meat, cheese, frozen and semifrozen ready meals, ensuring compliance with food safety standards and protecting brand reputations. With the impact of international regulations such as the British Retail Consortium (BRC) Global Standards Version 6 and International Featured Standards (IFS) Version 6, product safety and security are clearly core priorities for food manufacturers. For this reason, the Profile Select incorporates key elements of HACCP (Hazard Analysis and Critical Control Point) food safety principles, with its Human Machine Interface (HMI) requiring dual-level user name and individual password login. This 28
ensures only authorized staff can alter machine settings and access the contents of the lockable reject bin. In addition, the Profile Select’s sophisticated Performance Validation Routine (PVR) guides operators through mandatory test regimes to ensure test accuracy while enhanced on-screen HACCP reporting software ensures compliance with regulations by facilitating data access and analysis in the event of an audit. “In today’s competitive food production market, manufacturers must maintain their strategic advantages by adapting their products to match consumer lifestyles and trends” explained Jonathan Richards, Marketing Manager of Mettler-Toledo Safeline Metal Detection. “As our customers have increased the flexibility of their processing lines to handle a growing variety of products and pack styles, we’ve seen heightened demand for our Profile Select metal detector. This is because it can enable producers to increase their production efficiency, supporting their bottom line, while allowing them to comply with international regulations and export to lucrative markets worldwide.” Vol. 09, Issue 03, January, 2014
Positive EFSA claim evaluation based on new research on chicory oligofructose to lower blood glucose response
Puratos India introduces Cremfil, ready to use creamy fillings Cremfil - When reliability meets convenience
ollowing collaboration between BENEO, Cosucra and Sensus, a dossier for an EU Art 13.5 claim was filed that contains new data to show the link between oligofructose and improved blood glucose response after intake. The dossier submitted to EFSA was based on several studies* including newly developed science, and shows that oligofructose has a significant part to play in the area of glycaemic control. The application targeted an EU Art 13.5 claim on the contribution of oligofructose to a reduction of post-prandial blood glucose response. EFSA’s positive evaluation allows the approval by the Commission, the Member States and the European Parliament within the health claim procedure. This opens the way for new food and drink applications to benefit both the industry and consumers alike. This proprietary new research from BENEO, Cosucra and Sensus, has shown the positive impact on blood glucose response when a proportion of the sugars in a product is replaced with the prebiotic fibre oligofructose that is derived from chicory. The new oligofructose data demonstrate a significantly lower blood glucose response with only 20% replacement. The conditions of use proposed in the evaluation refer to
Vol. 09, Issue 03, January, 2014
the “reduced sugars” claim as published in the annex of Regulation (EC) No 1924/2006, i.e. a 30% replacement. A second dossier focusing on chicory inulin and also including additional newly developed scientific research was ready for submission at the moment when EFSA’s opinion on chicory oligofructose was published. As EFSA broadened the scope to non-digestible carbohydrates when evaluating the oligofructose dossier chicory inulin is included and benefits de facto from this evaluation. With increasing challenges placed on society by diet related diseases such as obesity, overweight, impaired glucose tolerance and diabetes, there is increased emphasis on food and drink producers supporting the development of new, lower glycaemic response products. According to a spokesperson of the companies that invested in the research, “this approach is in line with the thinking of the nutritional advisors to expand consumers’ choice for healthy products. The research has provided additional physiological evidence why oligofructose is a very suitable sugar replacer and therefore represents new opportunities for the food industry to meet consumers’ demand for more low glycaemic and tasty products”. 29
uratos India, a leading manufacturer of specialist products across all 3 verticals viz. Bakery, Patisserie & Chocolate has strong focus on product innovation of bringing new variety, new technology & new types of products to market therefore offering a lot more to customers in India. Puratos India has launched their brand-new product, Cremfil which is a range of ready to use creamy fillings designed for ambient and cold bakery and patisserie goods. The Cremfil range is recognised by many leading manufacturers as a reliable creamy filling thanks to its great stability during pumping, baking and freezing. Today, these fillings, which combine excellent technical characteristics with great taste, are produced in more than 25 countries around the world. With 2 ranges Cremfil Silk and Cremfil Classic, Puratos India offers Vanilla, Chocolate, Orange, Mango, Strawberry, Pineapple, Lemon, Irish crème& Blueberry in the Indian market. Suitable for use in many types of bakery and patisserie products, the product has a shelf life of 9 months. At Puratos our mission is to help their consumers with great tasting fillings, through a variety of finished goods, be it Muffins, Breads, Cakes, Pastries, mousse or anything that the chef imagines
CHINESE BICARBONATE Anomaly Regarding Food Grade Bicarbonate Imports
n FY14, India is expected to import approximately 33,000 MT of sodium bicarbonate. China caters to more than 90% of the countryâ€™s imports. Sodium bicarbonate is broadly classified as a technical grade for industrial purposes and refined grade for food applications. The primary physical differentiator for
the 2 grades is the better whiteness of the food grade product. Chemically, Indian food grade standards stress upon low chloride, sulphate & insoluble matter presence. Sodium bicarbonate [food grade] finds wide applications in bakeries, confectionaries, animal feed, and personal care products. However, it has been brought to our IS2124:2000
Criteria Indian standards
notice that substantial volumes of Chinese material are being sold in domestic markets as food grade despite not meeting the Indian food standards [IS 2124:2000].Chinese national standards subject food grade sodium bicarbonate to lowered standards than the Indian counterparts. As noted in the illustration below [Figure 1], Chinese food grade bicarbonate is acceptable with 0.4% chlorides and undefined sulphates & insoluble. But Indian standards stipulate an adherence level of 0.06% for chlorides & 0.1% maximum limit for insoluble matters as most of the end products are ingested.
China Nat. Standard
Food Chemicals Codex
TATA Chemicals Technical
Sr. No. Characteristics 3
Vol. 09, Issue 03, January, 2014
Food Processing News
Game on for India’s snack sector
arket dynamics will soon change in the Rs 7,200-crore branded snacks sector. To counter competition from multinational players, domestic players like ITC Foods, Parle Products, CavinKare and Parle Agro are drawing up fresh strategies to woo consumers. Despite a slowdown, the sector is growing at 30%. Recognising the growth potential of this sector, Indian FMCG majors are beefing up their operations to drive volumes. To begin with, makers of Bingo, ITC Foods is betting big on innovative products, brand-building plans and digital
communications to take on multinational rival PepsiCo, led at the global level by Indra Nooyi . At present, PepsiCo India’s Frito-Lay is leading the pack in the branded snacks sector. While Parle Products is extending manufacturing capacity and distribution network, CavinKare that acquired ‘Garden Snacks’, is strengthening its snack portfolio with retail and marketing initiatives. The company is also scouting for acquisitions to extend product portfolio. On ITC’s plans, chief executive, foods division at ITC, Chitranjan Dar said: “ITC is leveraging its distribution and supply chain investments and cuisine expertise of hotels division to enhance consumer franchise in the snacks segment.” “Our strategy includes, enhanced brandbuilding efforts, effective use of digital media and clutter breaking communication
campaigns,” he added. ITC had entered the branded snacks category in 2007 with Bingo. Meanwhile, Parle Products, makers of Parle Namkeen, is investing in research & development to launch new products to woo diverse audience. “There’s a pipeline of new products to be launched. We are looking at new categories in the snacks sector,” said Pravin Kulkarni, the general manager (marketing), Parle Products. Parle Products is increasing the manufacturing capacity at its four plants. The company is also extending distribution by 20% to reach out to a wider audience. It is also targeting young consumers. On August 16, Parle Products tied up with the international gaming company Rovio Entertainment to promote Parle Wafers. Like ITC, Parle Agro that sells Hippo snack brand is also betting big on innovations. “Our core strategy is to continue focus on innovation and introduce first-of-its-kind brands in India,” said Nadia Chauhan, the joint MD of Parle Agro.
Sharad Pawar advocates for state level reforms for food processing industries
he ongoing projects in the food processing industries sector that have been assisted by the Government will create an additional capacity of 1.7 lakh tonnes of cold storage, 1.37 lakh tonnes CA (controlled atmosphere) storage, deep freezers worth 57,000 tonne capacity, 591 reefer carriers and 103 lakh liter per day milk storage in the country. The Agriculture and Food Processing Industries Minister, Sharad Pawar has called for state level reforms and linkages between agricultural production and the requirement of food processing industries, for fast growth of the sector. Vol. 09, Issue 03, January, 2014
Shri Pawar also expressed the hope that investors will make use of various incentives offered by the Government to them. “In August 2013, the Government has approved 75 new cold chain projects. Out of these, 56 projects have already been sanctioned. MOFPI has now invited offers for setting up of 15 cold chain projects under the Scheme for Cold Chain, Value Addition & Preservation Infrastructure. I hope investors will take benefit of Government’s scheme of grant in aid up to Rs.10 crore for setting up a cold chain project. This will facilitate investment in food processing sector by improving availability and quality of horticultural products round the year,” he said. Taking about the problems faced by the food processing industries, the Minister emphasised the need for streamlining the clearance processes and other reforms. He 31
said: “Protection of ground water levels and a clear water usage policy across states will reduce unscrupulous practices and wastage of scarce resource. On the regulatory front, around 40 different approvals are needed to set up a greenfield manufacturing plant. These include clearances from different government bodies at the centre, state and local levels. If the process is streamlined, India can develop as a manufacturing hub. A number of reforms have to be taken at the state level. For instance, there is an urgent need to have uniform classification for the non-alcoholic beverage sector by the State Pollution Control Boards and all states should classify non-alcoholic beverages under the ‘orange’ category along with other food processing industries. This will streamline the clearance process for setting up manufacturing facilities.”
Food Processing News
Tetra Pak debuts coiled Ishida mono-tube heat exchanger using Snacks as growth tool for T Africa
shida Europe plans to expand into Africa next year and snacks will spearhead the move. The packaging and processing specialist will delve into a handful of African markets next year in a bid to grow business further and pull in £135m ($221.4m) next fiscal year, up £13m from this year. The company has now started to look into Africa – the main part of Africa – in a more determined way, and as with all new markets, the snacks side of Ishida will likely spearhead this entry. When a new market starts up, the area it tends to come from first is snacks… So with Africa, Ishida expects to follow the same pattern. Snacks will be a very important sector in that growing area and created a niche for the company. However, Ishida Europe does plan to develop new business in Africa on a broader level – beyond snacks covering sectors like meat and poultry and fresh food. It has been compiling market research on African markets for the past few months – looking at key players and the state of development in each. After fundamentally analysing and looking at market research reports and secondary data. Ishida now has identified the key players and the current state of development and the next stage now is to actually do some primary research. However, the company is focused on working slowly to ensure a secure market entry. There are supermarkets, they are selling products there and Ishida wants to make its presence to be there.” Snacks represents around a third of Ishida Europe’s total business – between 25-30% - and despite the move into Africa, the aim is to actually shrink this to 15-20% over the next few years.
etra Pak has launched a next generation heat exchanger that can process thick and sticky products such as puddings, purees or soups and products that contain solids such, as casseroles, baby food and ready meals. The Tetra Vertico uses a coiled mono-tube instead of the traditional tubular and scrape heat exchangers, which gives it a higher pressure rating. As many food producers prefer not to use moving parts during aseptic processing and the lack of moving parts and the higher speed of the coiled mono-tube design is a major advantage of the Tetra Vertico. The challenge for the food industry has been applying either direct or indirect heat treatment at a speed and efficiency that can keep up with both modern production demands and without altering the nature of the product being treated. A traditional straight tubular heat exchanger consists of three metre or six metre long pipes connected together with 180° bends. A Tetra Vertico coiled tubular heat exchanger by contrast consists of pipes which are between 30 and 100 metres in length (depending on the duty) with two 90° bends at the inlet and the outlet of the heat exchanger. This results in a gentler treatment of products that contain solids and improves hygiene due to a lower number of welds and connections. The heat exchanger is designed to withstand a higher pressure within the unit compared to a traditional heat exchanger. This means products can be passed through at a higher speed, leading to a fluid flow characterised by a higher Reynolds number (a measure of fluid flow pattern). As a result, the rate of heat transfer is significantly improved. The high pressure rating also makes it possible to run viscous products at higher 32
capacities to meet production demands. It is also in contrast to a scrape surface heat exchanger, where the product is passing though the heat exchanger at very low speed. In a scrape surface heat exchanger the heat transfer is facilitated and fouling is avoided by constantly scraping the heated surfaces with rotating scrapes. The mechanical action of a scrape surface heat exchanger means that generally these units have a very small capacity. Tetra Pak confirmed SunOpta of Canada, has bought one of the machines and it decided to launch the product now in response to ‘a growing need for processing solutions that can process both thick and potentially sticky (viscous) products. SunOpta organic food company specializes in sourcing, processing and packaging natural and certified organic food products such as grains, fiber and fruit based food with organic ingredients, private label beverages, natural sweeteners, frozen fruits and vegetables. Highlights of the Tetra Vertico include reduction in both system volumes and holding times by up to 20% (compared to concentric heat exchangers); reduction in product losses by up to 6% (compared to concentric heat exchangers); more gentle mechanical treatment, making it suitable for foods with big particles and it is EHEDG certified. Vol. 09, Issue 03, January, 2014
Food Processing News
INDIA’S CHOCOLATE INDUSTRY TO CROSS `7,500 CR BY 2015
rowing at a compounded annual growth rate (CAGR) of about 25 per cent, India’s chocolate industry is currently worth about `5,000 crore and is likely to cross `7,500 crore mark in the next couple of years. Globally the chocolate industry is worth over $85 billion. Besides, India’s per-capita chocolate consumption is hovering at about 100 gram and urban centres comprise 35 per cent of the chocolate consumption in the country. Cadbury is leading the pack with about 70 per cent market share followed by Nestle, Amul, Ferrero Rocher, Toblerone and others, ASSOCHAM said in a report. Though lower penetration levels provide large scope for expansion of chocolate industry across India but there is a lack of interest amid regional confectionary players to enter the chocolate market as firstly, it requires huge capital investment for production and brand promotion and secondly, facing established global players ruling the market is another tough task,” said ASSOCHAM secretary general D S Rawat. Demand for chocolates as a gift item has increased by almost 40 per cent with the advent of the festive season already and is likely to rise further as dry fruit prices have increased substantially by about 25-30 per cent, ASSOCHAM said. Adulteration in traditional sweets eroding consumers’ confidence along with dry fruit prices going through the roof and other significant multiple factors like growing acceptance of chocolates amid Vol. 09, Issue 03, January, 2014
varied Indian palates, attractive packaging, consistency in quality, growing gifting culture, rising urban affluence amid youth with high disposable incomes and a crazy sweet tooth together with other related factors are driving the demand for chocolates,” according to a survey conducted by ASSOCHAM to ascertain the gifting trends this festive season. ASSOCHAM interacted with about 1,000 consumers, traditional sweet shopkeepers, kirana stores, wholesale dry fruit traders and shopkeepers during
the course of past fortnight in 10 cities of Ahmadabad, Bangalore, Chandigarh, Chennai, Delhi-NCR, Hyderabad, Jaipur, Kolkata, Lucknow and Mumbai. Most of the consumers said that dry fruits would be the last thing on their minds as a gifting option this festive season as its prices have already sky-rocketed and will rise further as Diwali draws closer. Besides, majority of these also said they preferred chocolates over sweets as a gift option considering the factors like longevity, health related benefits, attractive packaging and others. Another significant factor that is fuelling chocolate demand during festive season in India is that it can be easily ordered online and its timely delivery at the desired destination highlighted the ASSOCHAM survey. Most of the dry fruit traders and shopkeepers said that recent rupee depreciation against major currencies had lead to an escalation of about 10-15 per cent in wholesale markets and the retail shoppers would have to cough up about 20-25 per cent more money. Chocolate confectionary makers have also increased prices and reduced pack sizes owing to sky-rocketing input costs as prices for major ingredients like cocoa, milk and sugar have soared in both domestic/global markets and this will only lead to consumers tightening their purse strings further.
Food processing sector registers fast growth
he food processing sector has witnessed fast growth, employment generation and export earnings in the recent past according to the press release issued by the central government. In major indicators, the growth in this sector has been better than other industries and the economy as a whole. On its part, the ministry of food processing industries has contributed to encouraging investment into the sector, improving infrastructure, evolving better standards, removing bottlenecks and initiating R&D and skill development. 33
The National Mission on Food Processing (NMFP) was approved in June this year followed by quick formulation of guidelines to states. The ministry has taken a number of steps for encouraging investment into the FPI sector; these include issuing expression of interest (EOI) for setting up 15 cold chain projects, information dissemination on resources and facilities available in different states, creating an investor portal, and modification of guidelines for setting up cold chains. On the Ministry’s initiative, concessional duty on food processing machinery is under consideration of the government.
Errors in India expansion push; accepts Nestle’
estlé, the world’s biggest food company, has admitted to erring in India by ignoring more affluent consumers as it pursued those spending pocket change on sweets and noodles. “We made a mistake,” said Nandu Nandkishore, who heads Nestlé’s Asia business. “We basically focused on driving the mass market, and we really ignored a little bit the emerging affluent segments.” The maker of Maggi noodles and Kit Kat chocolate bars concentrated on emerging markets and now account for 43 per cent of its $98.2bn global sales. However, like its
peers, Nestlé is now being forced to redraw its strategy in the face of depreciating local currencies, deceleration in economic growth, the impact of inflation on input costs, and rising domestic competition. Such factors are especially punishing on cheaper mass-oriented goods, as L’Oréal, like Nestlé, has discovered. The French cosmetics group last week halted sales of its mass-market Garnier brand in China. Nestlé’s sales in India grew by around 20 per cent a year annually in the three years to 2011, but growth decelerated sharply to just 8 per cent in the third quarter of last year At the peak of its rapid growth in India, Nestlé focused primarily on making its more mass-oriented products available to large numbers of new, cost-sensitive consumers deep in the countryside, even though demand for premium products at the upper end of the market was also exploding. But now its filling in the gaps and recovering the loops. The Swiss manufacturer is now switching tack in India to cater to rapidly
Hershey to acquire majority stake in Chinese Confectionery firm SGM
ershey Netherlands, a whollyowned subsidiary of chocolate producer The Hershey Company, has entered into an agreement to buy an 80% stake in Chinese confectionery firm Shanghai Golden Monkey Food (SGM), for an undisclosed amount.
The completion of the deal, which is subject to Chinese regulatory and SGM shareholder approvals, is expected in the second quarter of 2014. With the proposed acquisition, Hershey aims to leverage SGM’s brands, diverse product portfolio, incountry manufacturing as well as growing sales force to speed up its growth in China. The deal will also help Hershey improve its ability to address the needs of Chinese consumers, while providing increased opportunities for employees in the country. The Hershey Company president and CEO John P Bilbrey said that the strength 34
growing demand from more affluent Indians, whose household budgets are more immune to the country’s rising inflation and faltering economy. Nestlé recently introduced its high-end Alpino chocolates to India to compete against Ferrero Rocher and the premium offerings of Cadbury. Nestlé’s difficulties reflect how tough it is for large global consumer goods companies to devise a strategy for a market characterised by vast disparities between wealth and poverty. “The challenge is developing an organisation that is able to manage the extremes of going after the rural market and the affluent at the same time,” Mr Nandkishore said, in terms of price and quality. But he said Nestlé was finding the most difficulty in spurring growth in the midrange of the market. “Rural demand is robust,” he said. “Growth in [the] premium [market] is very strong – where we have felt pressure is in the middle.” Sales in India account for just 1.5 per cent of Nestlé’s global sales, but over the past four years, Nestlé has invested Rs35bn ($569m) to increase its manufacturing capacity in the country, expanding seven existing plants and setting up one new facility. of SGM’s confectionery portfolio and overall distribution capabilities is an opportunity for the company to leverage scale to make Hershey’s and SGM’s brands even more powerful. “Additionally, SGM’s focus on proteinbased products and snacking is ontrend with Hershey’s consumer-centric marketplace insights,” Bilbrey added. Following the transaction, SGM will operate as a standalone business, with most of its senior management team continuing in their current roles alongside a few Hershey appointed executives. SGM manufactures markets and distributes Golden Monkey-branded products; its product range includes Golden Monkey candy, chocolates, protein-based products and snack foods. The company produces products in five cities and has over 130 sales offices, around 1,700 sales representatives and nearly 2,000 distributors spread across all regions and trade channels in China. In 2013, SGM is expected to generate net sales of over $225m. Vol. 09, Issue 03, January, 2014
Corporate News Kellogg grows 31% to cross Rs. 500 crore sales mark in India
he world’s largest breakfast cereal maker, The Kellogg Co, crossed Rs 500-crore sales mark in India after growing 31% last fiscal and more than doubling its business in three years, helped by India-centric innovations and single-serve affordable packs that attracted new consumers. The American firm’s rapid growth has come at a time when most of its multinational rivals, including Nestle and Heinz, have been struggling to register single-digit growth numbers in a slowdown market. Sangeeta Pendurkar, MD at Kellogg India attributed the growth to building a relevant portfolio of products driven by consumer-centric innovations. “The
single-serve packs priced at Rs 10 in tier-I and tier-II towns have helped recruit new consumers into the nutritious ready-to-eat breakfast cereals market,” she said. Kellogg’s new launches in recent years include Heartto-Heart oats, bran wheat flakes, and Chocos and Honey Loops made with whole grain. Kellogg India has been growing at a scorching pace since Pendurkar took over in 2010. Kellogg’s has invested in changing habits, by backing innovation-led products like savories and oats and making the portfolio very India-specific, given that the Indian palette is very difficult and challenging to crack for multinationals,” said Devendra Chawla, chief executive at Food Bazaar that contributes 8%-10% of Kellogg’s overall sales. The company, for instance, launched savory variants green pudina and tomato salsa flavours, and even introduced mango cornflakes. Interestingly, Kellogg’s first attempt to localize, over a decade ago, had bombed. With increasing competition, however, it
PepsiCo India investing over 1,200 crore on new plant in Andhra
he company plans to build a new Greenfield beverage manufacturing plant in Sri City, Andhra Pradesh, which upon completion will be PepsiCo’s largest beverage plant in India, PepsiCo India said in a statement. PepsiCo intends to invest more than Rs 1,200 crore in the project, which is part of the recently announced plans by PepsiCo and its partners to invest Rs 33,000 crore in India by 2020. The company also announced plans to substantially increase sourcing of mango pulp from Andhra Pradesh in the next six years. Commenting on the development, PepsiCo India Chairman and CEO D Shivakumar said the new beverage facility Vol. 09, Issue 03, January, 2014
is a key part of the company’s growth plans for the Indian market and “we are delighted to locate it in Andhra Pradesh”. The plant will manufacture a range of beverages, including fruit juice based 35
won’t be easy for Kellogg to keep up its scorching pace and market share. While Kellogg is trying Indianisation, rivals such as MTR and PepsiCo have already launched packaged Indian breakfast foods like idli, upma and poha. MTR Foods, with sales of Rs 411 crore in FY13, is on the heels of Kellogg India. Even in the Rs 700-crore Indian organised breakfast cereal market, where Kellogg holds more than 60% share, the brand is facing increased competition with firms such as PepsiCo, Marico, GlaxoSmithKline and Dr Oetker entering the oats and muesli segments. Yet, Kellogg sees high growth potential, especially from untapped markets. The company, which expanded its distribution footprint by 50% over the last three years, is building a factory in Sricity, Andhra Pradesh, signaling renewed confidence in the Indian market at a time its parent company is seeing stagnant growth. Last month, parent Kellogg Co said it will cut about 7% of its workforce and slash capacity by 2017, after reporting quarterly decline in sales.
drinks, carbonated soft drinks and sports drinks. Sri City is ideally located and offers the perfect opportunity to harness the benefits of superior connectivity, great infrastructure and an ample talent pool, which are the prerequisites for every industry,” said Mr. Shiv Kumar. Welcoming PepsiCo’s investment in the state, Andhra Pradesh Chief Minister N Kiran Kumar Reddy said: “The proposed plant will be completed in three phases and once fully operational, the plant will provide direct and indirect employment to over 8,000 people”. PepsiCo Indian already has a beverage manufacturing plant at Sangareddy in Andhra Pradesh. With seven production lines, the plant manufactures and supplies PepsiCo products to the entire Andhra Pradesh region and parts of Karnataka
France’s Lactalis to buy Indian Dairy firm for $250-$300 mln -sources
urope’s biggest dairy group Lactalis has agreed to acquire a controlling stake in India’s Tirumala Milk Products for between $250 million and $300 million, two sources with direct knowledge of the matter said.
The French firm will buy shares from Tirumala’s founders, who own 80 percent of the company, and from private equity firm the Carlyle Group (CG.O), which invested about $22 million in the company in 2011 and holds the remaining 20 percent stake, the sources said. A Lactalis spokesman said the company had agreed to buy Tirumala for an undisclosed amount. Tirumala officials could not be reached outside business hours. The sources with direct knowledge of the matter declined to be named before a public announcement about the deal expected this week, or to specify the size of the controlling stake Lactalis would acquire. However, one of the sources said the French company would buy all of the Carlyle Group’s holding. The deal is subject to regulatory approval and is expected to close in this quarter, the sources said. Founded in 1998, Tirumala Milk Products, based in Hyderabad, is one of the largest dairy processors in southern India. It sells various milk and other related products.
Parag Milk Foods wins funding from IF I ndian dairy processor Parag Milk Foods has secured funding for expansion from the International Finance Corporation, the investment arm of the World Bank. The IFC is loaning Parag US$15m to
help expand its portfolio of value-added products, including UHT milk and whey powder. The money will also be used to improve its supply chain network and for food safety. Parag chairman and MD Devendra 36
The company’s turnover in the fiscal year that ended March 2013 was 14.24 billion rupees, according to its website. “This acquisition is a new step in the international expansion of Lactalis,” the French company’s spokesman said. Family-run Lactalis, owner of the Galbani, Lactel and President brands, is Europe’s No.1 dairy group in terms of revenue. It has grown through acquisitions to reach annual revenues of 15.7 billion euros, of which Europe accounts for 60 percent. One of its recent high-profile acquisitions was Italy’s Parmalat (PLT.MI) group in 2012. With the acquisition of Tirumala, Lactalis will enter one of the fastest-growing markets that has the potential to account for a large part of its sales in the medium to long-term, one of the sources involved in the process told. The deal, which took nearly a year to be completed, saw bids from global companies as well as buyout groups, he said. India is the world’s biggest milk producer and most of its produce stays at home as a protein staple for a population of about 1.2 billion. The country’s milk product exports are tiny and restricted mainly to south Asian countries. In India, Lactalis will compete with the likes of Gujarat Cooperative Milk Marketing Federation Ltd, owner of Amul, the nation’s best-known milk and dairy products brand, and the local unit of the world’s biggest food group Nestle (NESN.VX). Shah said: “IFC’s global knowledge and expertise in the dairy sector will help the company develop best practices to increase milk yields, adopt environmental and food safety standards and upgrade technology and operational practices. The project will benefit dairy farmers, a critical link in the company’s supply chain.” The IFC has invested $4.5bn across the agricultural sector in 2013, including in projects with Greece-based bakery and confectionery group Chipita. In September, the IFC bought a stake in Brazilian beef processor Minerva as part of an agreement that saw it lend the business BRL137.7m. Vol. 09, Issue 03, January, 2014
Indian Dairy Farm Amul Plans to Sell Liquid Milk in U.S. and Canada, Targets European Countries in Future
mericans and Canadians will soon have liquid Indian milk at their breakfast tables. Amul, the brand which represents Gujarat Co-operative Milk Marketing Federation (GCMMF), is an Indian dairy cooperative which has revolutionised the way liquid milk is produced and distributed in India
and abroad. Three million milk producers from the Indian state of Gujarat own GCMMF which has revealed plans to distribute liquid milk in the United States in 2014. Thereafter, it plans to target Canada along with other European countries in future. Amul prompted the White Revolution in India, which eventually made the country the largest producer of milk in the world. GCMMF Managing Director R S Sodhi feels that the process, however, will take some time. He believes that exporting liquid milk to European countries may take some time even though the company may not take much time to export it to Canada. Amul, which is also a world leader in
Amul to expand its butterly spread
hey have given their mascot - the iconic red polka-dot dressed Amul butter girl - a new 3D avatar. And now those marketing brand Amul are set to increase the spread of the utterly butter. The Gujarat Cooperative Milk Marketing Federation (GCMMF) will increase its butter manufacturing capacity with a new manufacturing plant at Mother Dairy in Gandhinagar. The first fully automated plant to manufacture butter located at Bhat village at Mother Dairy in Gandhinagar, a GCMMF unit, has a capacity to produce 50 tonnes of butter per day. With the commissioning on this plant by the end of next month, Amul’s total butter manufacturing capacity will touch 300 tonnes per day. Butter silos will be Vol. 09, Issue 03, January, 2014
used for the first time in the country at the new plant. Butter stored in these silos will be fed directly to four different automatic packaging lines. “We (Amul) have remained undisputed market leader in this category which has witnessed around ten per cent annual growth. During winters, when milk procurement is high, we will be able to produce more butter to meet the increase in demand and supply more fresh butter to our consumers through this state-of-theart plant at Gandhinagar,” GCMMF’s managing director R S Sodhi told. With the double digit growth both in terms of volume and value, Amul presently enjoys 85 per cent market share in the domestic butter market estimated to be around Rs 1,800 crore. India is not just the world’s largest 37
producing milk products, is soon to begin manufacturing clarified butter (ghee) and cottage cheese (paneer) at a New Jersey plant starting from February 2014. Amul has joined hands with a local plant in order to manufacture milk products in the city. It has also revealed plans that it may buy milk from local farmers directly in future. Amul will need about 50,000 l of milk every day to fulfil the local requirements. The plan is to produce 5 tonnes of ghee and 2 tonnes of paneer every day during the initial phase. It plans to produce additional milk products such as shreekhand (a type of Indian dessert), yogurt and lassi (curd-based drink). The GCMMF is going to provide infrastructure and technical support to the local plant in order to manufacture milk products, Mr Sodhi informs Business Line. Presently, the GCMMF exports dairy products worth about Rs 100 crore every year to Europe, West Asia and the United States. Around RS 35 crore of it goes to the U.S. only. The co-operative expects a turn-over of around Rs 18,000 crore in 2013-2014, which is 30 per cent greater than the previous year. milk producer but also the largest butter producer. The butter plant at Gandhinagar has been set up with an investment of Rs 80 crore and is equipped with auto cartoners and case packers. Major member unions of GCMMF including Anand-based Kaira District Cooperative Milk Producers Union Limited popularly known as Amul Dairy, Mehsana’s Dudhsagar Dairy, Sabarkantha-based Sabar Dairy, Banaskantha-based Banas Dairy already have butter manufacturing plants while small and manually operated plants also exist at Panchmahal-based Panchamrut Dairy and Vadodara-based Baroda Dairy.
Vol. 09, Issue 03, January, 2014
Vol. 09, Issue 03, January, 2014
Agri Business News
Over 40% Groundnut shelling units down shutters
ack of export demand for peanuts in the international market has posed a major threat for the groundnut shelling units in Saurashtra. Moreover, industry sources informed that new export regulations for shelling units has also adversely affected the business. Since the beginning of the current season in October 2013, shelling units of Gujarat have not received good business from overseas buyers. Exporters are demanding peanuts at lower rate, which is not viable for shelling units. “We have disparity in price as exporters are demanding groundnut for Rs 51 per kg but our production cost is about Rs 53 a
kg. In this condition business is not viable and as a result shelling units have to close their operations”, said Mukund Shah, president of Gujarat Oilseeds Processors Association (GOPA). According to Shah, there are more than 2,000 groundnut shelling units of in Gujarat. Out of these about 40 per cent units are not operational. The rest of the units are also operating at reduced capacity. The trade body also held responsible, the registration rules for lower business. As per DGFT notification dated January 3, 2013, exports of groundnut have been subjected to registration with APEDA along with controlled Aflatoxin level certificate issued by APEDA recognized laboratories. Shah said, “New rules for shelling units is very costly and time-consuming. Hence small shelling units can not afford it. Some of the shelling units have already changed operations and shifted to other commodities.” “Overall demand in the international market for Indian peanut has declined due to heavy selling by the USA as they have large carry-over stock of groundnut. But we are hopeful that demand will prop up after January 2014.”, said Kishor Tanna, President of Indian Oilseed and Produce
Export Promotion Council (IOPEPC). According to market sources, Africa is also offering peanuts at the lower rate. As per IOPEPC data, during April to October 2013, India has exported about 211,765 tonnes groundnut. Last year in same period it was 341,678 tonnes. This year export has declined by 129,913 tonnes mainly after government’s notification. Vikram Duvani, managing director, Rachana Seeds Industry, Junagadh said, “Demand from China and other Asian countries are very nominal and in the near future, there is no hope for good demand for Indian peanuts.” Meanwhile, Arrival of groundnut has increased to 150,000 bags (1 bag = 35 kg) in Gujarat. Price of groundnut is ruling at Rs 600-725 per 20 kg. The IOPEPC has estimated kharif groundnut production fir this year at 4.91 million tonnes from five states - Gujarat, Rajasthan, Andhra Pradesh, Karnataka and Tamil Nadu which account for close to 90 per cent of total output. This is higher by 2.1 million tonnes as compared to Kharif 2012, when the crop was only 2.81 million tonnes in these states, owing to monsoon failure. The, Solvent Extractors’ Association of India recently issued a kharif crop estimate of the Central Organization for Oil Industry & Trade. The report stated kharif groundnut production for 2013-14 would be 4.71 million tonnes, against last year’s 2.62 million tonnes. For Gujarat, it has estimated the production at 2.5 million tonnes.
2 more investment zones, chilli park for Karnataka
nion Commerce Ministry has approved the Karnataka Government’s proposal to set up a chilli park at Haveri. Addressing reporters after a meeting here to review the pending projects, Union Commerce Minister Anand Sharma said, “We have cleared the proposal. The land for setting up the chilli park will be finalised by the State government. Spices Board and the State government will take it forward.” The Ministry also cleared the Karnataka Government proposal to include pepper under the National Horticultural Mission (NHM). “Karnataka is the second largest pepper
producer. The State will be brought under NHM. For setting up a pepper park, the State will co-ordinate with the Spices Board,” said Sharma. Export facilitation To facilitate export from Karnataka, Commerce Ministry has approved few more projects. Prominent among them are to take up construction of a convention centre. An assistance of Rs 20 crore is being given to Karnataka Trade Promotion Organisation (KTPO) to take up construction of the centre. In order to increase agri-exports from Karnataka, Agricultural and Processed Food Products Export Development Authority (APEDA) will take up construction of cold 40
storage and warehousing facilities at the new airport (BIAL). “This will increase State’s share of agriexports and create additional infrastructure facility at the airport,” said Sharma. Of the seven mega leather clusters proposed in the country, Karnataka will get one. The regional sub centre of the National Institute of Design (NID) in Bangalore is will be upgraded to a full-fledged campus. The Indian Institute of Packaging’s proposal to set up a centre in Bangalore has been cleared.“A proposal was approved some time back but it will be taken up with the State government’s help,” Sharma said. Vol. 09, Issue 03, January, 2014
Area Under Grape Cultivation Increases
he area under the cultivation of table grapes (intended for consumption while they are fresh) for export has increased by 5.92% to 13,900 hectares for the grape export season, January-April, 2014, from last year. The agriculture department is eyeing
Agri Business News exports of 50,000 metric tonnes of grapes during the upcoming grape season. Last season, 48,465 metric tonnes of grapes were exported from Nashik district. “Agricultural and Processed Food Products Export Development Authority (APEDA) has made the registration of vineyards compulsory from 2004 for grape-growers, wanting to export their grapes to promote export quality production. Accordingly, the superintending agriculture officer has finished registration of vineyards for last season. By December 15, (the last date for registration of vineyards with late fees), 19,793 vineyards (total 13,900 hectares), each admeasuring 0.40 to 1.20 hectares, have been registered. Last year, 15,679 vineyards (13,123 hectares) had been registered,” an official from the agricultural department told. For the upcoming grape season, the total area under cultivation is around 1.25 lakh acres. Around 10 lakh metric tonnes of grapes are expected to be produced in the district as the productivity is 20 metric tonnes per hectare. Maharashtra contributes 90% of the country’s total grape export. Around 70% of the state’s grape export comes from
Twofold rise in Processed Food, Basmati Rice exports to Iran
ndia’s agriculture and processed food exports to Iran have more than doubled in quantum and value terms in the last one year, mainly on account of an exceptional surge in Basmati rice exports. If the trend continues, this year’s export of Basmati to Iran could be the highest. In value terms, Basmati rice exports to Iran increased by 137 per cent (nearly threefold rise), while in terms of quantity it increased by 77 per cent, between April and September 2013 and 2014, data from Agricultural and Processed Food Products Export Development Authority (Apeda) show. Between April and September 2013, total food exports to Iran was valued at Rs 7,104 crore, against Rs 3,043 crore in the same period last year, a rise of nearly 133 per cent, according to Apeda. In terms of quantity, the amount of exports
Vol. 09, Issue 03, January, 2014
increased by almost 104 per cent between April and September this year over the corresponding period last year. “This year there has been a great surge in Basmati exports to Iran. While the quality of rice exported from India has improved, 41
Nashik. The district is registering growth in export of grapes every year. The exports from Nashik have increased 10-fold from 4,532 metric tonnes in 2003 to 48,465 metric tonnes in 2013. In 2011, however, grape exports had declined by 58% to 15,000 metric tonnes due to unseasonal rains. But, Nashik experienced good grape seasons in 2012 and 2013 with exports of 28,000 and 48,465 metric tonnes of grapes, respectively. Nashik grape exports Year Exports (in metric tonnes) 1999 2,596 2000 4,051 2001 2,376 2002 3,775.37 2003 4,532 2004 8,631.63 2005 13,359 2006 16,700 2007 19,000 2008 27,650 2009 27,533 2010 35,671 2011 15,000 2012 28,000 2013 48,465 there could be other reasons for the rise in exports. It might be the reason that the Iranian government wants to stock up their inventory,” said R Sundaresan, executive director, All-India Rice Exporters Association. After US sanctions against Iran, India’ export to that country had suffered a setback. However, with Iran being a key oil supplier to India, both countries reached a new payment mechanism in 2012. Under this, 45 per cent of India’ crude payments were made in rupees through UCO Bank. The rupee resources were being used for making payments for Indian exports. Thus, with Iran unable to procure foodgrains from other countries, India’s rice export has witnessed a surge in volume. About 85 per cent of India’s agriculture and processed food exports to Iran are on account of Basmati. However, India’s exports might be affected by the recent deal of six major countries (the US, France, Germany, Britain, China and Russia) with Iran to ease Iran’s nuclear plans in lieu of temporary relief over sanctions.
Vol. 09, Issue 03, January, 2014
Biscuit & Bakery
RPG-Sanjiv Goenka group to invest Rs. 70 cr for bakery chain roll-out the ﬂagship outlet of Au Bon Pain bakery café in Kolkata. Photo: Ashoke Chakrabarty The café-cum-bakery chain of the RPGSanjiv Goenka Group, Au Bon Pain, will go national within a year, entailing an investment of Rs. 70 crore. Talking at the launch he HinduSanjiv Goenka, of flagship store, Chairman Sanjiv Chairman, RP-Sanjiv Goenka Goenka said that there would be 70Group at the inauguration of odd stores in a year, and 120 by March
Vol. 09, Issue 03, January, 2014
2015. With this launch, Au Bon Pain has 31 stores in Bangalore and Kolkata. To a question on how the group planned to take on competition , he said that this would be done through product differentiation by offering healthy options in fast food. Spencer’s Retail Ltd. had tied up with Au Bon Pain, a U.S.-based fast dining and bakery café chain, to launch outlets across India, beginning with a store in Bangalore. Au Bon Pain means ‘the place of good bread’ in French. The group signed, in 2008, a master franchisee arrangement, to be owned by a joint venture of Spencer’s and the director and promoter of Au Bon Pain, Thailand. Mr. Goenka said that there would be 18 stores in Kolkata at an investment of around Rs. 33 crores. The café here, which has come up on the now closed Music World premise, will also be open to music releases and book launches.
Biscuit & Bakery
Around the World in 80 Cakes takes customers on international taste trip
he owner of Around the World in 80 Cakes in Washington has developed cake and cupcake recipes from nearly every corner of the globe. Traveling from her former career as a chemical engineer for an oil company inspired the flavors. Matcha powder picked up in Japan fuels a Green Tea Cupcake. A trip to Sicily inspired her cannoli cake infused with Marsala wine and cinnamon, cannoli filling and chocolate ganache. While a Bermuda escape led to the creation of a Dark & Stormy -- a riff on the country’s popular drink of black rum and ginger beer. The Dark & Stormy was the toughest to create in cupcake form, Rao says, adding that she played with dry ground, crystallized and fresh ginger to tease out the best flavor. It’s not just the taste she’s after but a recipe that’s easy to re-create in any kitchen. There’s a cookbook already taking shape in her mind. Rao showed off her Mango Ginger Cupcakes with Saffron Buttercream from India and Cinnamon Bun Cupcakes from Sweden at ArtsQuest’s Cupcake Bowl in December and took time to talk about
how her vision came to fruition. Baking up a plan Rao bakes while working full time as an instructional technologist at Lafayette College. She started Around the World in 80 Cakes in 2009, though she didn’t officially open until 2010. She makes wedding cakes, cupcakes, mini bundt cakes and other baked goods. When work sent her to India, she came back with a desire to re-create the Indian dessert laddoo, which involves batter pushed through a sieve into hot oil, forming morsels that are dunked in sugar syrup and spices. When she tried making the actual dessert, it flopped. In cake form, it had potential — taking form as a Rose Pistachio Cake made from rose water, pistachios, cardamom, almonds and saffron. “These are flavors that people might be reluctant to try, but when it’s in a cupcake it seems harmless enough to try,” Rao says. In the beginning, she focused on recipes she could make from items she brought home from her trips, exotic ingredients she found perusing grocery stores in other countries. Her Mexican Coffee Cake draws strength from half cinnamon coffee and half hot chocolate, flavors often used with coffee in Mexico. After taking a class to learn to make Greek baklava, she developed an olive oil-based cake with alternating layers of cake and a cinnamon, sugar and walnut mix crowned with a honey, lemon and cinnamon glaze. Recipe testing When she’s in recipe development mode, 44
her engineering days come back to her. She charts recipes in Excel and finds her background in math and science helps her bake. She jokes the exotic flavors are a contrast to the traditional foods she grew up with but says her love of baking goes back to her Easy-Bake Oven days. When she started the bakery, she made the farmers markets rounds through Washington, Belvidere and Lehigh University. She tried cookies and brownies, but it was the cupcakes that got customers excited. She says the markets were a testing ground for her and a way to spread the word. She looked at storefronts but wasn’t sure she was ready to take the plunge. “We’ve seen so many businesses in our town start, close down, start and close down,” she says. Instead she and her husband, Rohit Rao, built a commercially licensed kitchen out of their basement to handle orders. Rao jokes Rohit is her only assistant — the one to drive the car, carry the wedding cakes and the business’ official taste tester. What’s next? Will she rule out a storefront? Not yet. But in the meantime, she’s got a lot cooking. Today she has her 80 recipes but is in the process of testing recipes and drafting a book proposal. A friend of a friend introduced her to Rose Levy Beranbaum, her favorite cookbook author and a James Beard Award-winning baker, and she’s been helping Rao with the publishing process. “No matter what, I’m going to publish it. I’ll find a way to make it happen,” Rao says. “Thus far, I’ve been a one-woman everything — Web developer, accountant. ... If I have to, I’ll figure out how to selfpublish, too.” She shares her story and recipes in the blog on her website, 80cakes.com. She sells edible baking decorations on Etsy and is working on gluten-, egg- and dairyfree recipes. Though some of those close to her have cautioned against giving away her recipes, Rao sees it differently. “The worst part of traveling was going to these places by myself. This is my way of offering a window into these places,” Rao says. Vol. 09, Issue 03, January, 2014
Manpasand Beverages hold Kristal Spirits to expand hand of Sunny Deol for Fashion Mango Sip Brand
Beverages range in India
anpasand Beverages, India’s leading fruit juices company, has signed up Bollywood’s ‘Action King’ Sunny Deol as the brand ambassador for its flagship brand ‘Mango Sip’. Manpasand Beverages is in the business of beverages since a decade with its flagship brand Mango Sip established by first generation entrepreneur Shri Dhirendra Singh. It has carved a niche for itself in the market with a basket of 25 product variants. Mango Sip brand has grown to become one of the leading mango drink brands in India. The company plans to invest over Rs 100 crore in next one year even as it continues on its fast paced growth to take its sales to Rs 1000 crore in coming three years’ time from current Rs 300 crore plus. The Bollywood action star with a strong fan following amongst the urban and rural masses gels well with Manpasand’s Mango Sip brand which has a strong presence amongst the masses across the country. With a super-hit debut ‘Betaab’ in 1983, Sunny Deol went on to create a mark for himself and emerge as a Bollywood super-star with hit films like Arjun, Tridev, Ghayal, Jeet, Ziddi, Damini, Indian and Border amongst others. Sunny’s biggest blockbuster hit to date has been ‘Gadar: Ek Prem Katha’. Vol. 09, Issue 03, January, 2014
Endorsing the Mango Sip brand, Bollywood superstar Mr. Sunny Deol said, “I am extremely thrilled and honoured to be part of Manpasand family. I am personally very fond of mangoes and feel that only an Indian brand like Mango Sip can understand the importance of mango fruit as a whole and make the national fruit the most consumable beverage product in India. Mango is a fruit loved by all Indians, irrespective of their age, region, religion or caste. It is our duty to address the masses and educate them about the importance that mango drink holds.” Speaking about the company’s new brand ambassador, Mr. Dhirendra Singh, Chairman & MD of Manpasand Beverages said, “We are very proud to have Mr. Sunny Deol as the brand ambassador for our flagship mango juice brand and are confident that his association will help in significantly increasing the per capita consumption of mango drinks in the country. With a strong presence in tier-2 and tier-3 markets, our network is spread across 2 lakh plus retail outlets and over 2000 dealers. Our aim is to double these numbers in a few years and make Mango the most loved beverage product in India. We will be starting a full 360 degree media campaign shortly.” 45
elhi-based Kristal Spirits India Pvt Ltd is likely to introduce champagne and other energy drinks from the Fashion Beverages stable. Cyprus-based “Fashion Beverages” is the beverage brand of Fashion TV. According to Arun Aditya, Managing Director, Kristal Spirits, there remains a huge scope for growth in the vodka segment. Target segment would be the youth and party goers. “We are looking to bring in other brands from the Fashion stable over the next six months. We would give some time for Fashion vodka to gain traction before launching other products,” he said. Kristal Spirits currently markets two Fashion vodka brands - one imported or bottled in origin (BIO) variety and another locally bottled or India manufactured foreign liquor (IMFL) variant - across select cities of India. While the BIO variant caters to the super premium segment and is priced at Rs 4,900 for a 750 ml bottle; the other IMFL priced at Rs 900 a bottle will cater to the premium segment. In the super-premium segment Fashion will compete with GreyGoose; while in the premium, it will be placed a notch higher than Smirnoff and Gorbachev.. Cities where Fashion vodka has so far been launched include Delhi, Hyderabad and Kolkata. According to Aditya, the company is looking to garner a 10 per cent market share. Of the Rs 30,000 crore liquor market in India, 3 per cent is vodka consumption. Whisky, rum and beer still occupy the major market share.
Beverage industry to grow at 16.5-19%: report
onsumption of non-alcoholic beverages is expected to increase by 16.5-19% over the next three years as more people are trading up to packaged drinks, according to a report by the Indian Council for Research on International Economic Relations
(ICRIER) and the Indian Beverage Association (IBA) released. Corporate manufacturers of nonalcoholic beverages are expected to grow at an annual rate of 16.5% and non-corporate manufacturers at 19%, according to the report titled Unleashing
the Potential of the Non-alcoholic Beverage Sector. The estimates are based on an assumed gross domestic product growth of 7%, which is much higher than the 5% growth several economists are forecasting. India’s beverage market is largely unorganized, with nearly 75% of the demand serviced by companies in the unorganized sector. But in the past 18 months, the world’s largest beverage makers Coca-Cola Co. andPepsiCo Inc. invested heavily towards building capacity and developing bottling infrastructure in the country over the next 7-8 years, to meet the growing demand for packaged beverages. The ICRIER-IBA report said that with the rise in incomes India’s non-alcoholic beverage sector has evolved both in terms of product variety and the number of companies in the market. According to another report by researcher Business Monitor International, the Indian market of nonalcoholic beverage market comprising carbonated drinks, juices, bottled water, ready-to-drink tea and coffee, and sports drinks is expected to touch $5.18 billion by 2015. S.R. Goenka, president, IBA, said India’s nonalcoholic beverage sector holds several advantages in terms of its large consumer base, abundant supply of raw material and a pool of low-cost, skilled labour. “The sector has seen double digit growth post-liberalisation, and is currently contributing over 1% to India’s GDP. With industry leaders such as Coca-Cola and PepsiCo announcing significant investment plans for India, there is a clear indication that the sector offers significant potential for growth in the coming years,” he said in a press release. Vol. 09, Issue 03, January, 2014
Vol. 09, Issue 03, January, 2014
Agri Business News
Look East Policy can boost the agri-horti sector: Tarun Gogoi
he Directorate of Agriculture, the Directorate of Horticulture and Food Processing, Assam and the Assam Agricultural University in association with the Indian Chamber of Commerce and the Assam Horticultural Society organized the 1st Assam International Agri-Horticultural Show 2014 at the College of Veterinary Science Playground, Khanapara, Guwahati, Assam. The biggest ever Conferencecum-Exhibition organized in North East India the event scheduled till January 11, 2014 will showcase the prospects and potentials of the region particularly that of Assam with respect to the agriculture and horticulture sector. The conference, which is the fourth in its row, has gone International this year with active support and participation of countries like Bangladesh, Bhutan, Taiwan, Nepal, Italy, China, Indonesia, South Africa, Israel, Canada, UK, Myanmar, Laos, United States of America, Netherlands and more than 70 Indian companies and corporations representing agri-machinery, seeds, fertilizers, financial institutions and various boards of the agriculture sector. Sectors of specialization for international exhibitors include agriculture and horticulture products like seeds, fertilizers, pesticides and agrochemicals, food and beverage industry, food processing, nutritional management, animal feeds, fruits and vegetables, biotechnology, livestock and storage units. The event will
also find the participation of international Chambers of Commerce, the Consulates, High Commissions and overseas Farming and Development Societies informed Mowsam Hazarika, Publicity Coordinator of the exhibition and SDAO(Information) Directorate of Horticulture and Food Processing, Assam. Eminent dignitaries and personalities of the Government of India, Government of Assam and the Consulates attended the inaugural session of the 4-day conference. The personages included Tarun Gogoi, Hon’ble Chief Minister, Government of Assam; Vinod K Pipersenia, Additional Chief Secretary, Government of Assam; Charan Das Mahant, Hon’ble Minister of State for Agriculture & Food Processing Industries, Government of India; Kanna Lakshmi Narayana, Hon’ble Minister of Agriculture, Government of Andhra Pradesh; Dr Benjong Liba, Hon’ble Minister of Agriculture, Government of Nagaland; Nilamani Sen Deka, Hon’ble Minister of Agriculture, Horticulture & Food Processing & Parliamentary Affairs, Government of Assam; Mr Pankaj Agarwal, Secretary, Department of Consumer Affairs, Ministry of Consumer Affairs, Food and Public Distribution, Government of India; Anup Kumar 48
Thakur, Secretary, Department of Animal Husbandry, Dairying & Fisheries, Ministry of Agriculture, Government of India; Madhav Lal, Secretary, Ministry of MSME, Government of India; Ardhendu Dey, Hon’ble Minister of Irrigation, Government of Assam; Member Gogoi, Chairman, Assam Agricultural Marketing Board; Mr Jitesh Khosla, Chief Secretary, Government of Assam; H.E. Mr Saw Myint Oo, Hon’ble Minister of Agriculture and Livestock, Sagaing Region of Myanmar; H.E. U Myint Than, Hon’ble Minister of Agriculture and Livestock, Mandalay Region of Myanmar; H.E. Dr Khamphad Sourinphoumy, Hon’ble Vice Minister, Ministry of Agriculture and Forestry, Government of LAO PDR; M K Saharia, Chairman, ICC NE Initiative and Dr. Rajeev Singh, Director General, Indian Chamber of Commerce. Chief Guest Tarun Gogoi, Hon’ble Chief Minister, Government of Assam, appreciated the performance and activities of the Ministry of Agriculture and Ministry of Horticulture of Government of Assam for their efforts in developing the sector in the recent years. Speaking on the need and importance of agricultural sector in the country and especially in the state of Assam, he said that development and prosperity of the sector helps in improving the economic condition of the residents and people of the state. He also mentioned about the prospects and opportunities of the state’s sector; there is ample water and irrigation facility in the state, significant amount of land availability and good weather condition conducive for performing multi-cropping and increasing productivity of the crops. Gogoi said that opportunities are galore in the state with respect to the sector and
Vol. 09, Issue 03, January, 2014
Agri Business News he cordially invited the foreign investors and industrialists for investing in the state across agriculture and horticulture sector. While mentioning about the advantages of the region and that of the state, he said that future of the sector lies with proper implementation of the ‘Look East Policy’ and hoped that the policy will help in increasing trade and commerce with the nearby countries. However, for witnessing the envisaged growth of the sector and the economy, the requirement of skilled employment and large number of educated people in agri-horti sector is called for. In the concluding remarks, he said that the State Government is looking for employment of sustainable development in the sector. “There is a need to remove the presence of middlemen to reach the desired level of growth and development of the sector. He hoped that there will be more investments and capital deployment in the agriculture
and horticulture sector in the state in days to come,” he said. Speaking of the prospects and development in the agri-horti sector Nilamani Sen Deka, Hon’ble Minister of Agriculture, Horticulture & Food Processing & Parliamentary Affairs, Government of Assam said that the subtropical climate of Northeastern India is extremely favorable for the cultivation of several plantation crops. “The state has performed extremely well in the last fiscal and has even reached record production of some of the crops including tea, jute and paddy. The farmers in the state have developed significantly in the last five years, owing to development and mechanization of farm-level practices,” he said. He hoped that with guidance from the Chief Minister Tarun Gogoi, the sector will grow more intensively. Charan Das Mahant, Minister of State for Agriculture & Food Processing Industries,
Government of India said that the state of Assam has performed extremely well in the recent past and has in fact performed better than many other states of the country. Owing to some of the favorable weather conditions, availability of rich resources and irrigation facility, the sector has developed significantly. He is optimistic that with proper implementation of Central and State Policies, the sector will foresee multidimensional growth in the future. Speaking on lines similar to the other speakers M K Saharia, Chairman, Indian Chamber of Commerce, NE Initiative mentioned that with the proper application of policies, the state has not only witnessed significant growth rate in the present fiscal vis-à-vis last fiscal, but also has helped in developing the economic profile of the farmers considerably. He hoped that the growth path of the sector in the state will continue and reach higher summits in the days to follow.
GI asks agri-export body to include MP as Basmati growing area
eographical Indications (GI) Registry has directed agri-export body APEDA to file an amended GI application for including Madhya Pradesh as a Basmati growing region. The GI label certifies not only the geographical origin of a product but also confirms adherence to some production standards. Further, it prevents producers who aren’t covered by the tag from using the same. Madhya Kshetra Basmati Growers Association Samiti, Dawat Foods Ltd and the state Department of Farmer Welfare and Agriculture Development had in 2011 filed an “Opposition” (application) against APEDA for excluding the state land area under the GI-145 application, and causing extensive damage to the business interests of farmers and millers. Following that, the Chennai-based GI Registry’s assistant registrar Chinnaraja G Naidu on December 31, 2013 directed APEDA to file an amended GI application including the uncovered
Vol. 09, Issue 03, January, 2014
area, with map of the region clearly demarcating the area of production, within 60 days from the date of the order. “In Madhya Pradesh, four lakh farmers produce nearly 8 lakh tonnes of Basmati rice; out of which 40 per cent is being exported to countries like the US and others,” Madhya Pradesh Agriculture Department’s Principal Secretary Rajesh Rajora said. The state government will also file a caveat before the Intellectual Property Appellate Board, Chennai, regarding the matter, he said. A large number of farmers in Madhya Pradesh have been growing Basmati rice for last many years by using traditional and new techniques, Rajora said. “Non-inclusion of the state among the Basmati growing areas will have an adverse effect on the lives of farmers, who are mainly dependent on Basmati rice cultivation,” he said, adding that it will also reduce the country’s turnover from the export of Basmati. 49
The opponents blamed APEDA -Agriculture and Processed Food Products Export Development Authority -- for failing to include in its application areas that cultivate Basmati rice in Madhya Pradesh, including Morena, Bhind, Gwalior, Sheopur, Datia, Shivpuri, Guna, Vidisha, Raisen, Sehore, Hoshangabad, Jabalpur and Narsinghpur. They submitted that since the state is located in the Indo-Gangetic plain, the climatic condition of these areas is favourable for the cultivation of Basmati. The opponents have also submitted proof of cultivation of Basmati within Madhya Pradesh state since as early as 1990 and also provided copies of the Gazetteers, historical documents to substantiate their claim on the issue.
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Vol. 09, Issue 03, January, 2014
Vol. 09, Issue 03, January, 2014
Meat & Poultry News
UAE’s LuLu eyes Meat Processing plant in India
usuffali MA, founder of EMKE Group which owns LuLu. LuLu Group, the Abu Dhabibased hypermarket chain, is reportedly looking at setting up a new meat processing unit in West Bengal in India. “We are looking at setting up a meat processing unit in the state solely for supply to our hypermarts,” said Sanju Philip, commercial executive of LuLu
Group in comments published in local media. The group operates these units under the Amronn Food and Fair Exports and already has similar facilities at Lucknow, Mumbai and Sahibabad in Uttar Pradesh, Indian papers reported. Philip was quoted as saying that the company would do a feasibility study on the project. LuLu already operates the largest mall in the country in Kochi. In November, the boss of retailing giant Lulu Hypermarkets says he was forging
Norwegian dairy, meat products may be banned alongside fish
ussia’s Federal Service for Veterinary and Phytosanitary Surveillance (Rosselkhoznadzor) will tighten control over dairy and meat products imported from Norway following the January 1, 2014 ban on the import of some Norwegian fish products, Rosselkhoznadzor spokesman Aleksey Alekseyenko said after talks between the agency’s heads and the Norwegian Embassy’s officials. Rosselkhoznadzor expressed concern over the level of quality guarantees provided by the Norwegian Food Safety Authority (Mattilsynet). “Considering the fact that this organisation provides its guarantees both for fish and some other regulated products, such as dairy and meat products, we will also have to tighten control over these types of goods,” Alekseyenko said, adding that the lack of sufficient government guarantees could possibly lead to a ban on the import of Norwegian dairy and meat products to Russia.
On January 1, 2014 Russia announced a ban on the import of some fish and seafood products from Norway. The ban did not affect salmon fishes and products of 29 fish-processing enterprises earlier inspected by the Russian veterinary authority. In November 2013, Rosselkhoznadzor had to impose restrictions also on the import of codfish liver and molva (blue ling) due to the systematic detection of live nematodes in batches supplied from Norway. Salmon supplies are currently allowed only from salmon farms earlier inspected by the Russian watchdog. “In the event that some violations are detected at these enterprises (at least twice, according to Russian regulations), the list of suppliers will inevitably be reduced,” 52
ahead with ambitious expansion plans that include 42 new Lulu Hypermarkets in the next two years. Yusuffali MA, who was ranked the 40th richest Indian on the planet with a fortune of $2.2bn, said despite numbering 104 stores in the Middle East his Abu Dhabi-based company had no signs of slowing down. It will open seven new hypermarkets in the UAE in 2014-15, six in Oman, four each in Qatar and Kuwait, three each in Bahrain and Egypt and 15 in Saudi Arabia. New markets were also being pursued in Malaysia, Indonesia, Iraq, Algeria, Morocco and Libya. Alekseyenko said. He added that it was insufficient that Norway’s supplying companies controlled the quality of products themselves. Rosselkhoznadzor considered it also necessary to be secured with guarantees from the country’s official veterinary authority. In 2013, as well as in 2012, Russia became the largest importer of Norwegian fish. According to the Norwegian Committee of Fish Exporters, the total value of exported fish has increased by ten percent year on year to 1.06 billion dollars in 2013, which “makes Russia the most important export market for Norway”.
Vol. 09, Issue 03, January, 2014
Meat & Poultry News
Dancing Turkeys Forays in the Indian Meat Market
remium turkey and turkey meat products brand Dancing Turkeys has recently forayed into the Indian market by launching its turkey products in the country. According to the company officials, turkey meat is one of the largest consumed nutritious meats in America, EU, and the EMEA regions. However, due to various reasons like size, taste, availability and demand, the meat did not really gain traction in the Indian market. Dan Turk Farms and Services (DTFS), Owner of the Dancing Turkeys brand, is
a farmstead focussed on providing nutritional food to the Indian masses. While Dancing Turkey is currently focussing on Turkey Meat, DTFS soon plans to launch new categories that have not been launched in India so far. Sharing his vision on transforming the brand into a food processing company, Sameer Mathur Managing Director and CEO, Dancing Turkeys, said: “With a distinct change in the lifestyle of Indian consumers, there is a huge surge in nutritional demand of foods, and Dancing Turkeys fills this gap perfectly here. We are planning to make Dancing Turkeys as, one of the strongest brands in its category outside the United States. Turkey consumption today makes it a festive food, but we would like to change that perception, and make it as
How India-Yes, India-Became a Global Beef Powerhouse
ne surprising fact from the Heinrich Böll Foundation’s new “Meat Atlas” is that India, a country where many people have a religious veneration for cows and a third of the population is vegetarian, has emerged as a major player in the world beef market. Just not cow beef: The star of the day is India, thanks to its buffalo meat production, which nearly doubled between 2010 and 2013. India is forcing its way onto the world market, where 25 percent of the beef is in fact now buffalo meat from the subcontinent.
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According to the U.S. Department of Agriculture, India became the world’s largest exporter of beef in 2012—just ahead of Brazil. Buffaloes are inexpensive to keep. This makes their meat a dollar a kilo cheaper than beef from cattle. In addition, the Indian government has invested heavily in abattoirs. Faced with the high price of feed, Brazilian cattleraisers are switching to growing soybeans. This presents an opportunity–albeit a small one–for Indian buffalo-meat exporters. Though buffaloes are less venerated than cows in India, the country’s emergence as 53
much a staple diet as possible. We believe that Dancing Turkeys shall bring about healthier citizens, which in turn shall build a healthier India. Our intention is to usher a small change in the eating habits, and drop the misnomer that non vegetarian diet is bad for health.” Mathur further added: “To keep up with the vision of being the best, we have stitched supply chains to become robust and flexible, yet conforming to benchmarked systems and processes in India.” Dancing Turkeys claims to have tied up with leading chefs to create turkey recipes for the Indian masses, largely to enable trials and garner interest. Seeing a huge potential in the Indian market with nutritional organic food consumption growing at approximately 20 percent each year, DTFS plans to invest close to 20 million USD in building the infrastructure and take a dominant role in the Indian marketplace. It is also planning to cater to the mid-East and African markets and targeting to achieve a turnover of 200 crore in the next couple of years. In the next few months, the company plans to focus on addressing the needs of the 117.7 billion USD Hotel and Tourism industry along with other sectors like healthcare, institutional, fine dining, QSR, and retail.
a major player in the beef market is still controversial among Hindu nationalists and has been criticized by Narendra Modi, currently the favorite to become prime minister after this year’s elections. While killing cows for food is illegal in many part of India, there’s a flourishing illegal trade. Not surprising given that there are more than 280 million cows in India, more than any other country. In one highly publicized incident, violence broke outbetween students during a beef-eating festival at a university in Hyderabad in 2012.
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GLOBAL DEMAND FOR FOOD PROCESSING MACHINERY ON THE RISE
ndia is the world’s second largest producer of food but the processed food machinery industry in the country is relatively small. Factors such as changing food consumption patterns; increased spending on value added food products, spurred by increase in income levels; increasing number of women joining the work force; rapid urbanization, changing life styles and mass media promotion are fuelling the growth of food processing industry. The Indian market for the food processing machinery has been growing steadily, fuelled by strong domestic demand for processed food and beverage products. The pattern is likely to continue as more food processing units are commissioned. The most promising areas of growth are fruit & vegetable processing, meat, poultry, dairy & seafood, packaged/ convenience food, soft drinks and grain processing.
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around $330 billion by 2014-15, according to a study by the Italian Trade Commission. This growth in the Indian food processing industry is spiraling the demand for more sophisticated machinery and equipment. From vegetable and fruits to meat and poultry sectors, processing machinery and equipment are needed in every phase involved in the processing of food from farm to fork, as the total domestic spending on food in India will be around $318 billion by 2020 (source: Indian Brand Equity Foundation - IBEF study on Food Processing March 2013). The trend and growth of processing machinery and equipment industry will be influenced by the growth in the food processing industry and the recent trends show that this is going to be strong. INDIAN FOOD PROCESSING Government of India expects investments MACHINERY MARKET The market size of the Indian food of $21.9 billion by 2015 in food processing processing industry is expected to be infrastructure (source: IBEF). An important factor which has provided substantial stimulation to the food pro cessing equipment industry is the emphasis on the rapid growth of processed food exports from India. There is a need for adopting superior technology, food proces sing and packaging machinery to ensure quality in the international market which demands high quality standards. The food processing sector is expected to grow at a healthy pace considering the rapid changes in food habits and consumerist culture developing in the country. The machinery manufacturers have honed their experti se in manufacturing dairy machinery and other core equipment of food processing machinery.
Machinery Categories The categories in which the equipment and machinery are more required may differ given the demand by the consumers of the processed food but certainly with the government becoming strict in recent times regarding health and hygiene practices, food processors are updating themselves with the latest in the market. The growth in the main sub-categories in the processing industry could be described under fruit and vegetable processing (20%), milk and dairy (15%), vegetable oil and oil seed processing, grains (wheat, rice, corn, lintels), meat and poultry (10%), alcoholic beverage, non-alcoholic beverages and ready-to-eat. And the industry is growing at an average of 16%, even passing 30% for fruit and juice segment. Driven by growth The demand is driven by the rapid economic growth this region attained in last one decade alone with countries like India having one of the highest numbers of young consumers liking the quick food. Also, the varieties now available with the companies experimenting by making the food a blend of international look and ethnic taste is helping them sail through. And with so much intense competition, pricing, capabilities, quality, flexibility, automation features, and after-sales service and support will decide the future of the players manufacturing food processing machinery and equipment.
processing industry is still in infancy, there is a huge opportunity lying but a lot of hard work is to be done and a focused approach is needed to tap it. The processing equipment manufacturing technology is not developed in India in accordance with the food processing retailing opportunities. Still a large number of specialized equipments are being imported. India does not have any specialized manufacture unlike in Western countries, where they do a lot of research on each of the machinery and equipment. PACKAGING AND BAKERY MACHINERY According to a report published by the Federation of Indian Chambers of Commerce and Industry (FICCI), the domestic packaging industry is worth USD 18 billion and consists of 700 packaging machinery manufacturers, the majority being SMEs. The average rate of growth of the segment has been pegged at 15 per cent per year and the segment is believed to have extensive linkages that are high employment creating. Packaging of products, consumer or industrial, is an integral part of marketing strategy. Developments in packaging technology have not only contributed to improving aesthetic appeal of the products but also the shelf life. In some cases,
specialized packaging becomes a technical necessity. The packaging machinery segment is, therefore, considered as an important segment of the industrial scenario especially in consumer products and in IT industry. Considering the growth prospects in the industrial sector and growing consumer awareness of packaging, it is expected that there would be substantial growth in this area. Because of the opening up of the Indian economy and globalization, packaged goods from international markets are easily available and this would further boost the growth of packaging machinery industry. There is a wide range of packaging machinery available in the country covering vast range of items. Some of the commonly available packing machinery includes machines for strip packaging, form fill & seal machines, carton filling, fully automatic bag making machinery and automatic micro processor controlled packaging machines. The demand for food processing machinery is growing and sales are predicted to increase by 7.3 percent on a global scale over five years, reaching a total value of $53.3 billion, a recent study from industry marketing research firm Freedonia Group suggests. According to the report, titled “World Food Processing Machinery,” the rise in
Small, marginal players In India, however, the market of food processing industries lies with the small and marginal players. Experts say that 85% of the market share is with small players while 8-9% is with medium and only 5% is with big players. While the medium and big players mostly have imported critical component required by the processing industry, the small players due to their inability to pay huge bills prefer locally fabricated machines and equipment. Hence, though Indian food 56
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Machinery slow growth in more developed countries lies in the well established and relatively stable dietary preferences of consumers, which, combined with the maturity of the markets, allows little opportunity for growth and further development, the report claimed. However, countries recovering from the financial crisis might lead the way to innovation and invest in more advanced and upgraded machinery, which could boost sales in mature markets. In terms of food processing machinery production, China will lead the way until 2016, followed by the United States, Germany and Japan. The experts note that the producers of the equipment are mainly small companies and the industry is very fragmented, which makes it difficult for major changes and a shift in the balance of power to take place.
sales will be driven mainly by increased demand for processed food products in emerging and developing markets, as consumersâ€™ income goes up. Meanwhile, in major markets such as China and Brazil, it is a common tendency for consumers to shift their focus towards more valueadded, non-essential food categories, such as chocolate and meat, which will result in food processing businesses looking for ways to diversify their production and to expand their capacity. In addition, producers from highly industrialized countries will be investing more in new methods of processing basic products, such as fruit, vegetables and grains, which will require more advanced equipment. The industrial bakery machinery, including pasta equipment, accounts for almost one in five food processing machinery sales, which makes it the most popular product category. Predictions for 2016 confirm the dominance of bakery equipment, forecasting a bigger value growth compared to other categories. A Vol. 09, Issue 03, January, 2014
REQUIREMENT POSSIBILITIES And India is expected to witness growth in packaged food, aerated soft drink, packaged drinking water and alcoholic beverage. So there would be a lot of requirement of equipments and machinery. Â In FY2010, the total output of processed food and beverage was $93.1billion while the sector growth was at 14% in FY12. Also the export figures were encouraging with an average growth of around 14% per annum (source: IBEF report 2013). However, the processing equipment manufacturers of India like L&T, Alfa Laval and SSP, have been largely focusing upon milk and dairy, breweries and distilleries not in basic processed food. And state-of-the-art technology for other processing purpose is being provided by the foreign industries like Bohler providing critical technology for rice mills, potato mills heat and controlling system. Other companies like Bosch are providing the packaging solutions. As a matter of fact there is a need of big Indian corporate making a foray into the business of food processing technology because the technology being imported currently is not cost-effective and that Indians developing critical technologies would help the industry grow immensely and qualitatively.
significant increase is also expected in the sales of equipment for processing meat, poultry and seafood globally, as personal incomes are set to grow and consumers will be able to afford to buy more meat and related processed products, the research noted. Asia and the Pacific region are predicted to see the fastest growth, at an annual average of 9.5 percent between 2011 and 2016, mostly because of the driving force of the Chinese market. Although sales in China leveled out between 2006 and 2011, the study expects a renewed surge in sales to be seen by 2016. India, Indonesia and Thailand are predicted to contribute to the regionâ€™s strong food processing machinery sales. The research noted that the subdued demand for industry machinery recorded in the most developed economies, including the United States, Western Europe, Australia, Canada and Japan, will FACTORS DRIVING THE INDUSTRY continue to lag behind the global average India is expected to raise its current over the next five years. The reason for this percentage of perishable food processing 57
Machinery to 20% from currently of 10% while its share of global trade is expected to be around 3%. Indiaâ€™s urban population is estimated to increase from 450 million in the year 200910 to 590 million in 2030, which likes spending on ready-to-eat food. The spending on food is around 50% of the household expenditure in India. The food retail companies are expanding rapidly in India while more are queuing up. FINALE The food processing industry is dynamic and fast-paced. The food processing industry holds a unique position in the Indian economy. The changing food habits, ready-to-eat and so lifestyle have given new opportunities to food producers, machinery makers, and technology and service providers. The food processing industry has taken a new direction and is growing steadily with almost 7% growth annually. Infrastructure development will take this industry to new heights in the near future with the help of adequate investments and exports. The Indian food processing industry is a high priority sector for the Government of India, and hence, it is poised for excellent growth in the coming years. In fact, the Government of India has adopted a major policy decision for commercializing agriculture and developing food processing, preservation and packaging sectors. The technology available in India in the agro-food processing equipment sector is not much advanced when compared to developed countries. As the food processing sector is being identified as high priority industry in India, the equipment sector is also gaining importance. Food industry in India is huge and there are traditional and medium equipment manufacturers, who have locally made equipment for food and beverage processing. The machines and equipment used by those are not of quality, whereas there are a few big companies who have high-end equipment machinery for food and beverage sector. As we go ahead, companies have to update technology and
machinery, because there is huge demand for processed food products with changing lifestyle and consumer preferences. India is the second-largest producer of food in the world next only to China and has the potential for development of a very large food processing industry. The processed food market is the most important segment of the food industry, making it very dependent on technology and new developments. The need for high volumes, high productivity and high quality has led to increasing demand for automation in the food industry, especially with the Indian food processing companies looking to export their products. The great demand for fresh and high quality food has caused extensive research to develop the technology that can sustain the natural taste and flavour of foods, albeit seasoning extra nutrients and vitamins, so non-thermal technology has drawn great attention. Because this method is combined with several preserving technologies such as irradiation, antimicrobials, filtration, ultrasound, and so on, it offers plenty of benefit for food preservation. Especially meat, poultry, and fish related products are more vulnerable to dangerous bacteria and lacking consistent quality, but advancement in technology like Visual Appraisal Method and invention of processing tools and equipment like conveyor belts, wash down houses, and mop handles have somewhat paved the way for meeting quality requirements. At 58
present, the quality of meat is assessed through Visual Appraisal method such as marbling, muscle colour, and skeletal maturity. Such advancement in food technology resolved the credibility issue that boosted confidence among consumers, leading the industry to a great height. Vacuum cooling technology has brought overwhelming changes in the food processing industry. It is a pretty effective method to cool down specific horticultural products such as vegetables and fruits to extend the storage life by dint of cutting down the deterioration of post-harvest yields. While talking on innovations, one has to look at better conservation and better shelf life of the products, be it food or beverage. The challenge is how to process food and beverage products at lesser cost, low energy, and better capacity utilization. New product development based on market demand is another area of focus. Lot of research and development is happening in ready-to-eat food and other food and beverage products. No doubt the market of food machinery and equipment is rising globally and India can been spotted being the front runner in enhanced development of this sector- a great support from the government plus increasing need of super technology in packaging, processing and shelf life in food processing is the driving force behind this development. Vol. 09, Issue 03, January, 2014
• Process Techhnology Automation • Packaging Technlogy • Automation • Processing Control & Regulation Technology • Food Retailling • Food Safety & Quality Mangement • Environment Technology, Biotechnology • Conveying Transport & Storage Installations • Dispensing & Vending Machines • Food Service
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