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0 GERMANY

Food & Agribusiness Conclave

Dairy Processes & Technologies

Greater Role for PPP To ensure Food & Nutrition Security

Marine Exports Touch a New High Frozen shrimp continues to be major export item

New Avenues of Product Diversification

INDIA: A Booming Market for Food Products & Technologies

Tackling Storage Woes Incentives for storage infrastructure investors


AgriBusiness & Food Industry - INDIA


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AgriBusiness & Food Industry - INDIA AgriBusiness & Food Industry w May 2011


AgriBusiness & Food Industry - INDIA


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AgriBusiness & Food Industry w May 2011

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AgriBusiness & Food Industry w May 2011

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10. Cover Story

Tackling Storage Woes Incentives for storage infrastructure investors — T V Satyanarayanan

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EDITORIAL

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MIDDLE EAST REPORT

Middle East Grains Trade Summit, Dubai

16. Curtain Raiser

India: A Booming Market for Food Products and Technologies

inside...

A gateway to world’s leading markets

Top players, executives and decision-makers attend — M B Naqvi

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INTERVIEW

“We look forward to cross US$ 3 billionmark next year”- An

18. Seafood Industry

Interview with Anwar Hashim

Marine exports touch a new high

Frozen shrimp continues to be major export item

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PROFILE

l l l l l l l l l

Abad Fisheries Nila SeaFoods Pvt Ltd Dorothy Foods Bell Foods Ocean Wealth Exports Heat and Control Millmore Engineering Pvt. Ltd. Dhiman Systems (India) Ltd. Pentagon Marketing

AgriBusiness & Food Industry - INDIA AgriBusiness & Food Industry w May 2011


inside...

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INVESTMENT

Tetra Pak expands India operations

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ADVERTORIAL

Packaging Pioneers

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REPORT

Food & Agribusiness Conclave

Greater Role for PPP

To ensure Food & Nutrition Security — M B Naqvi & Sumanta Basu

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GUEST COLUMN

FDI in multi-brand retail in cold storage?

To invest Rs. 6 billion to set up new facility — Bureau Report

— G. Chandrashekhar

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DAIRY

Dairy Processes & Technologies

New Avenues of Product Diversification — A. A. Patel

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DAIRY NEWS

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CORPORATE NEWS

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RESEARCH NEWS AgriBusiness & Food Industry w May 2011

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Chief Editor

S. Jafar Naqvi

Consulting Editors

T.V. Satyanarayanan K Dharmarajan

Chief Co-ordinator

M.B. Naqvi

Editorial Co-ordinator Sumanta Basu General Manager Lalitha V. Rajan Layout & Design Faiyaz Ahmad Mohd. Iqbal Head Office New Delhi: +91-11-26682045 / 26681671 / 64521572 Fax : +91-11-26681671 mediatoday@vsnl.com Other Business Offices Hyderabad 9848031206 hyderabad@mediatoday.in Mumbai 9702903993 mumbai.office@mediatoday.in Pune 9881137397 pune@mediatoday.in Bangalore

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Printed, published and owned by M.B. Naqvi, Printed at Everest Press, E-49/8, Okhla Industrial Area Ph-II, New Delhi - 110 020 and Published from E-11/47 A, New Colony, Hauz Rani, Malviya Nagar, New Delhi-110017 (INDIA) Editor : S. Jafar Naqvi

Vol 8....... Issue 5 ...... May 2011

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orial Edit

hose who scripted India’s Green Revolution often used to poke fun at the predictions of some of the Prophets of Doom on India’s agriculture future. Two American economists – Pollock brothers – for instance had predicted in the early sixties that wide-spread famine and starvation deaths would stalk India in late seventies because of its food production not matching the population rise. Those two economists had, on the basis of their study, classified the countries in the world under three categories –first, countries well placed because of their high agricultural growth; secondly, countries that would face food shortage, but would manage the situation; and thirdly countries having no hope. They had placed India in the third category. How far from the truth those gloomy forecasts turned out to be could be gauged from the actual situation in India at the appointed “period of doom.” That was the time when India’s wheat production had risen to such a level that there was not enough storage space for the bumper harvest. In Punjab, the main wheat producing state, many schools were closed early so that the grain could be stored temporarily in the class rooms! That was a tribute indeed to those who brought about a transformation on India’s agriculture front. Unfortunately, the storage problem for foodgrains has not been adequately addressed even decades after the launch of the Green Revolution. According to official figures, about one million tonnes of foodgrains had become unfit for human consumption in the last ten years because of lack of proper storage facilities and weaknesses in the supply chain. The output of wheat and rice has been increasing over a period of time and simultaneously, grain procurement by public agencies has been continuously going up. In 2010-11, the foodgrain output is estimated at 235.88 million tonnes, the highest ever. India Meteorological Department has predicted normal southwest monsoon this year, brightening prospects of a bumper Kharif harvest. As on January 1, this year, the foodgrain stock in the Central Pool stood at 47 million tonnes – much higher than the stipulated buffer norms and the requirements of the public distribution system. One reason for the high stock level was the ban on grain exports which the government imposed to control food inflation. Now that the Rabi harvesting season has started, how the government would manage grain storage is anybody’s guess. While augmentation of storage facilities is the need of the hour, some policy decisions to quickly dispose of the accumulated stocks are urgently called for. In his budget speech, Finance Minister Pranab Mukherjee announced fast tracking of the process to create new storage capacity through private entrepreneurs and warehousing corporations. Another welcome decision is to create two million tonnes storage capacity under Public Entrepreneurs Guarantee scheme through creation of modern silos, where grain can be stored in good shape for a longer period. Based on existing sanctions under various schemes, the Finance Minister was confident that very soon the storage capacity addition would reach four million tonnes. Surely, liquidation of existing stocks to manageable levels brooks no delay. Besides ‘open sale’ by the Food Corporation of India to benefit particularly small traders all over the country, exports are another option. The Food Security Law to be enacted soon would definitely demand improved logistics of procurement, storage, transportation and distribution. We need a pragmatic food management policy to ensure that every grain produced in the country is efficiently utilised. A country like ours, having 32 per cent of the population below poverty line, as per latest Planning Commission figures, can ill afford to waste food, produced by hard working farmers.

Comments are welcome at: mediatoday@vsnl.com Views expressed by individuals and contributors in the magazine are their own and do not necessarily represent the views of “AgriBusiness & Food Industry” editorial board. AgriBusiness & Food Industry does not accept any responsibility of any direct, indirect or consequential damage caused to any party due to views expressed by any one or more persons in the trade. All disputes are to be referred to Delhi Jurisdiction only. .....Editor

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COVER STORY

Tackling Storage Woes

Incentives for storage infrastructure investors — T V Satyanarayanan

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he government is creating a think tank to tackle the nagging problem of grain storage. The move follows a decision by the government to find a long term solution to a recurring problem of storage and a visit to China by Minister of State for Food K V Thomas to study bulk storage facilities in that country. The storage problem was brought into sharp focus last year when news media highlighted large scale rotting of foodgrains in the Central pool for want of adequate capacity in government godowns. An incensed Supreme Court, which heard a PIL on the subject filed by People’s Union for Civil Liberties, ordered the government to distribute the grain free to the needy if it was not able to store it. According to reports, about one million tonnes of foodgrains had become unfit for human consumption in the last one decade for want of proper storage

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and other post-harvest facilities. Last year itself, according to official figures, 70,000 tonnes of foodgrains rotted, though the authorities argued that it was only 0.08 per cent of the total foodgrains procured. Strain on storage Addressing a National Conference on Policy for Storage, Handling and Transportation, organised by the Department of Food and Public Distribution in collaboration with Central Warehousing Corporation (CWC) and FICCI, K V Thomas said increasing quantities of grain procurement has put strain on the available storage facilities. Figures show that the foodgrain stock in the Central pool stands at 45 million tonnes, which is almost twice the

AgriBusiness & Food Industry w May 2011

required norms for this time of the year. One of the key elements of agriculture infrastructure, Thomas said, is creation of adequate warehousing facilities, both by government and private sector. He referred, in this context, to his recent visit to China, and said based that study, the government has decided to create a Special Purpose Vehicle (SPV) which will have CWC, Container Corporation of India

Pranab Mukherjee

K V Thomas


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COVER STORY (CONCOR) and National Horticulture Board as partners. “The new entity will act as a think tank to undertake studies on bulk storage, handling and transportation requirements for foodgrains in addition to cold chain infrastructure and will endeavour private sector participation in creation of such facilities.” Planning Commission study Concurrently, a comprehensive study is being taken by the Planning Commission to suggest measures required for creation of modern foodgrain storage infrastructure. The study is expected to be completed soon. On involvement of private sector in creation of additional storage, the Minister referred to the Private Entrepreneurs Guarantee Scheme run by Food Corporation of India (FCI). The government has identified about 15 million tonnes of new storage capacity, which is being created through private entrepreneurs, Central Warehousing Corporation and State Warehousing Corporations. The government has recently constituted Warehousing Development and Regulatory Authority (WDRA) to introduce negotiable warehousing receipt system. It would enable farmers to avail themselves of better credit facilities from banks for their financial needs. The introduction of this system through a legal framework would not only help create quality warehousing but also give a further push to development of banking and insurance sectors in the rural areas. The Minister said under the national policy on Bulk Handling, Storage and Transportation of Foodgrains, initiated in 2000, a capacity of 550,000 tonnes has been created through private sector participation. The integrated bulk handling storage and transportation infrastructure created under this policy includes modern silos, mechanised handling and use of specialised wagons for carrying grains. Modern silos, which are now fully operational, are located in both procurement and consumption areas. “There is, however, a need to make a review to understand the usefulness of this infrastructure and take up its replication elsewhere, if required,” said Thomas.

The process to create new storage capacity of 15 million tonnes through private entrepreneurs and warehousing corporations has been fast tracked. A decision has also been taken to construct silos with a capacity of two million tonnes under Public Entrepreneurs Guarantee. Construction of silos According to the Food Ministry, it is proposed to create an additional 2 million tonnes of storage capacity under Public Entrepreneurs Guarantee by building modern silos. Alongside, CWC has undertaken studies for use of new materials and new techniques for construction of warehouses. It is taking up on pilot basis creation of 10,000 tonnes of temperature-controlled storage facility, thus giving an impetus to the process of modernisation of storage facilities.

Involvement of public sector in building storage infrastructure becomes imperative in the context of rising foodgrain production and matching increase in grain procurement to meet the needs of the public distribution system, set to play a greater role in view of the government proposal to enact a Food Security law that would statutorily give every family below poverty line access to foodgrains at highly subsidized prices. For the last several years, government has been trying to rope in private parties to construct godowns which the procurement agencies could hire. But the response to the scheme has been poor, since the private parties found the conditions too stringent. The government has therefore decided now to liberalise the conditions by dropping several restrictions and raising the period of guaranteed hiring of space from five-toseven years to ten years. In his recent budget speech in parliament, Finance Minister Pranab Mukherjee made a special reference to the efforts under way to build more storage capacity for foodgrains and cold storage for horticulture products. He said the process to create new storage capacity of 15 million tonnes through private entrepreneurs and warehousing corporations has been

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COVER STORY

Soaring demand for grain technologies

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he government initiatives to augment grain storage capacity in the country assumes greater significance in the context of increasing demand for milling technologies, expansion of food processing units, and launching of many value added products like pasta, macaroni, noodles, bakery products and snacks. With rising income and changing food habits, the demand for which products are on the increase in India. Domestic millers and food processors are looking for new milling and processing technologies from European nations and South-east Asia. While major equipment suppliers have already opened their production and service centres in India, trade sources point out that more companies are looking for partners or marketing associates to open shop in the country. According to Dipak Mane, Managing Director of Buhler India, “For the current calendar year, we expect to do business of Rs. 4.5 billion (Rs. 450 crore). This, we hope to more than

fast tracked. A decision has also been taken to construct silos with a capacity of two million tonnes under Public Entrepreneurs Guarantee. “While we will be able to add about 260,000 tonnes of capacity by March 2011, based on existing sanctions, the addition will reach 4 million tonnes by March 2012.” Besides, Mukherjee said, investment in cold storage projects is also gaining momentum. During this year, 24 cold storage projects with a capacity of 140,000 tonnes has been sanctioned under National Horticulture Mission. In addition, 107 cold storage projects with a capacity of over 500,000 tonnes have been approved by National Horticulture Board.

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double and cross Rs. 10 billion (Rs. 1000 crore) in the next five years,” The company is into manufacturing machines for milling of flour, rice and pulses, die-casting, pasta plants, chocolate plants and now it is planning to manufacture plant and machinery for snacks. The Indian grain processing industry size is estimated to be 186 million tonnes annually. As per Dipak Mane, MD, Buhler India trade sources, the estimated growth of this sector is over 5 per cent per year. Processing of grain includes wheat, rice and pulses and according to the Ministry of Food Processing Industries there are 43,000 rice mills and huller-cum-shellers. In addition, there are 800 large flour milling plants, 10,000 pulses milling units, 15,000 oil mills and 300 solvent extraction plants. For processing of spices, thousands of small and big plants are in operation throughout the country. Interestingly, all segments of above industries are diversifying and expanding their production bases. The forthcoming Grain Tech India 2011 (www.GrainTechIndia.com), to be held in Bangalore, a major trade centre in south India, which is an important production centre of many grains and cereal crops. Demand for technology upgradation and machinery is particularly high in southern and western states. The exhibition is trying to create a platform for the entire grain and cereal milling industry to source the technology requirements which are continually on the increase.

Budget sops The Finance Minister has also offered incentives to attract investment in this sector. Investment in creation of modern storage capacity would be eligible for viability gap funding scheme of the Finance Ministry. Cold chains and postharvest storage would be recognised as an infrastructure sub-sector, and therefore would be entitled some tax exemptions and concessions. According to the Agriculture Ministry, the country foodgrain production is set to touch a record 235.88 million tonnes in 2010-11. The latest crop estimate is higher than projection made at the second advance estimates. For the coming kharif season starting in June, a target of 100 million tonnes of rice was

AgriBusiness & Food Industry w May 2011

set at the recent all India conference on Kharif campaign. The increasing output is bound to push up grain procurement, which in turn would put additional strain on storage capacities. For the two major grain procuring states of Punjab and Haryana, which have been facing a storage crisis, a heartening development is the offer by the Railways to provide more rakes to quicken the movement of foodgrain stock to other states. The Food Ministry is confident that the new schemes initiated to augment storage capacity and other allied initiatives would give relief to the authorities trying to wrestle with the problem of plenty. n


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MIDDLE EAST REPORT

Middle East Grains Trade Summit, Dubai

A gateway to world’s leading markets Top players, executives and decision-makers attend

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he focus of Middle East Grains Trade Summit, a major event organised by Singapore-based IBC Asia, was mainly on major crops like wheat, rice, corn, soybean and feed grains like barley. For over 70 participants, many of them leading players in the grain milling industry, top executives and suppliers of commodities, it served as a gateway to world’s leading markets. It also helped to size up the demand of Middle East, a major destination for import and supply of agri commodities. According to FAO figures, the Middle East accounts for 8% of the world’s net agricultural imports. With grain markets in a perennial state of volatility, market drivers impacting trade are constantly changing. Inter linkages between different grains market have become more pronounced, with significant trade impact. A look at the latest trade figures would show that leading grain importers

S G Vaseem, MD, Majata General Trading LLC

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in the region are Saudi Arabia, Egypt and Kuwait. Saudi Arabia’s annual wheat needs are estimated at 3 million tonnes, and state-run Grain Silos and Flour Mills Organization there has emerged as one of the biggest buyers in the international grains market. It is also one of the major importers of Basmati rice and parboiled rice from India. Egypt is the second largest importer of wheat and it is looking for new suppliers. The country consumes annually around 12 million tonnes of wheat, 50% of which is imported. The Middle East as a whole is a leading rice import region, accounting for 35 per cent of world imports. Saudi Arabia is the world’s top rice buyer. Its rice imports in 2010 were forecast to increase by 4 per cent to about 1.1 million tonnes. The import of coarse grains by the Middle East region was 19,175 thousand metric tons up to August 2010, making

H R Salman, Managing Director, Al Maha Foods

AgriBusiness & Food Industry w May 2011

— M B Naqvi

it number two in the world market. The expanding animal feed industry in the region is attracting a considerable amount of foreign investment. Saudi Arabia's plan to phase out production of water- intensive crops, including animal fodder, has opened the doors for multi-million dollar deals. The Middle East region is the largest world market for feed barley, with Saudi Arabia, UAE and Kuwait continuing to be key markets. The conference highlighted the following subjects: l Rice and grain procurement outlook from top Middle East buyers l Food security, G2G agreements and implications for trade l Crop status and export forecast from the Black Sea region and major rice exporters l Corn and soy trade drivers and procurement contracts outlook l New developments in feed industry and opportunities l Price volatility management and hedging through derivatives. The conference was formally introduced by Ms Sammi Zhang, Conference Manager, of IBC Asia, but conducted by S G Vaseem, MD, Majata General Trading LLC, UAE. He was quite instrumental in introducing the importance of the conference topics, inducting the speakers and moderating the question-answer sessions, which followed the presentations. The conference began with an in-


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MIDDLE EAST REPORT depth discussion on Global Grains Trade Drivers. Dr. Shalan A. Edan, Director, Project Development Arab Authority for Agricultural Investment and Development (AAAID) made a presentation on Reality and Prospects of Grain Production in the Arab World. Anna Supryadkina, Key Specialist, Russian Grain Union, and Eugene Leng, CEO, Ukrzernoprom Agro LLC, Ukraine made presentations on Grains Supply Forecast from the Black Sea Region. On the subject of Middle East Wheat Markets, the speakers were Al-Arabi Hamdi, Advisor to the President for Economic affairs, AAAID, Dubai; Hisham El Attal, President, Egyptian Traders Company; and Tom Puddy, Head of Wheat, CBH, Australia. The post-lunch session was devoted to Rice Trade Outlook. H R Salman, Managing Director of Delhi-based Al Maha Foods Group, spoke at length on Dynamics of Indian Rice. He gave an in-depth analysis of Indian Basmati rice production, major export destinations, development of Indian rice industry, logistics and importance of Middle East as a sustainable market for Indian Basmati exporters. S G Vaseem of Majata General Trading elaborated his views on Rice Market in Middle East. He covered the demand drivers, consumption patterns of different varieties, outlook of Basmati imports and factors that could play a crucial role in coming years. The next day’s session opened with presentations on Feed Industry Outlook. The speakers were Mamoon Othman, CEO, Al Dahra Agriculture Company, UAE; Ibrahim AL Thonayan, President, AIMCO, Saudi Arabia; and Nicholas J. Gombos, Supply Chain Manager, ACX Pacific Northwest Inc, US. This was followed by discussions on Corn & Soy Trade Opportunities. Ramzi Nasrallah, Vice President, Wadi Holdings, Egypt, presented his paper which dwelt on corn demand and utilisation in Egypt.

Dr. Shalan A. Edan, Director, Project Development Arab Authority for Agricultural Investment and Development (AAAID), Eugene Leng, CEO, Ukrzernoprom Agro LLC, Ukraine and Anna Supryadkina, Key Specialist, Russian Grain Union

Dave Ramaswamy, Partner, Allied Venture shared his views on resources & grains supply from South America, and opportunities for possible investment & challenges. The conference concluded with a discussion on Agri Commodity Trade Risk Management. Those who made presentations were: Lamon Rutten, Managing Director, Multi Commodity Exchange of India Ltd; Nick Collins, COO, Clarkson, UAE; and Abah Ofon, Commodities Research, Global Markets, Standard Chartered Bank, UAE. Earlier, there was a panel discussion on Trade Risk Management in the current environment. Speakers on the panel were Jeffry Kuijpers, Director Commodity Products, CME, UK; SG Vaseem, Managing Director, Majata General Trading LLC; and Hisham El Attal, President, Egyptian Traders Company. The media partner of the meet was AgriBusiness

& Food Industry. Representatives of the monthly got an opportunity to actively participate in the discussions and to understand the future demands of the Middle East from the Indian perspective, which is important since India is a major supplier of Basmati rice and other value added products to the region.

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India: A Booming Market for Food Products and Technologies 2010 Event Picture

Over 15 countries products on display September 9-11, Palace Ground, Bangalore, India

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aving made the food processing sector virtually tax free, Ministry of Food Processing Industries has prepared ‘Vision 2015’, targeting an increased level of processing of perishable commodities from 6% to 20%. A new market driven farming is emerging in the country and the food processing sector could provide income generation opportunities to 70% of country’s population, directly or indirectly. The total food production in India is likely to double in the next few years and there are ample opportunities for large investments in food products, processing, packaging, technology and allied sectors. Prominent among the areas waiting to be tapped are canning, packaging, refrigeration for dairy, poultry, fisheries, meat, ready to eat products, cereals and

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grains, soft drinks consumer product groups like confectionery, chocolates, coco products, soya-based products, mineral water, high protein foods and nutraceticals, apart from health food and health food supplements, which is a fast growing segment of the food processing industry It is against this background that Media Today, which has an impeccable track record in organising international trade fairs and conferences, is holding the 3rd edition of India Foodex 2011 exhibition (www.indiafoodex.com). This three-day event will take place in Bangalore, which is the hottest destination for expansions and diversification of food processing industries. The concurrent shows are GrainTech India and DairyTech India, beginning from 9 – 11 September 2011. The exhibition will focus mainly on food products, dairy


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AgriBusiness & Food Industry - INDIA


Curtain Raiser

Expo. Last year trade visitors, from over 20 countries like The Netherlands, Bahrain, Iran, UAE, USA, Germany, Taiwan, Canada, Malaysia, Singapore, China, Kuwait, Jamaica, Greece, Pakistan, Israel, Uganda, Turkey, Ethiopia, UK, Spain, Belgium and Japan were at Expo. Organisers Since 1996, Media Today Group, backed by dedicated team of professionals, technocrats and marketing experts with over a decade of experience in publishing and conducting exhibitions, conferences, workshops, training programmes, is pioneer in organising specilised trade exhibitions. The Group has already organised a series of events including International Horti Expo, DairyTech India, GrainTech India, Flora Expo, Landscape and Gardening Expo, Cold Chain & Logistics Expo, Seed, Agrochem & Irrigation Expo, Processing & Packaging Expo, India organic Expo, Food Retailing Expo, Agri Finance & Insurance Expo, Medi Herbal Expo and Agri Tech India. The Group publishes national-level magazines like Floriculture Today, Agri Business & Food Industry, Saarc Oils & Fats Today, and Directories like APEDA Exporters Directory, Food Processing Industry & Trade Directory, Roller Flour Mills & Allied Industries Directory, and Floriculture, Nursery & Landscape Industry Directory. Media Today Group regularly participates in all major national and international exhibitions related to floriculture, horticulture, food & technology, etc held at major centres like Holland, Japan, Germany, France, Italy, South Africa, Russia, Singapore, China, Saudi Arabia, Pakistan, Nepal and Sri Lanka. Also the Group has a strong marketing network spread over all major business destinations including New Delhi, Mumbai, Pune, Hyderabad and Bangalore with marketing associates in China, Taiwan, Thailand, France, Spain, UAE. For more information please call: +91-11-65656554 / 26682045 or mail at indiafoodex@gmail.com orvisit www.indiafoodex.com / www.graintechindia.com / www.dairytechindia.in

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products, spices, fresh foods, coffee and cocoa, food ingredients, food retailing & technologies, grains and many more that demand attention. These 3-in-1 exhibitions -- are closely interlinked, forming a composite whole, encompassing the entire food business—from the grower to the consumer. India Foodex will have under its ambit production of good quality food, ready-to-eat products and promotion of marketing for retail outlets in India and abroad while GrainTech India will be devoted to post harvest management, processing and value addition to grain. And DairyTech India which is most important area where Indian Government going to invest to increase dairy productivity and value addition. To impart more value to the event, a two-day international conference and workshops for farmers and agri-entrepreneurs is being planned. Appropriately, the theme of the conference is “Food Security through Technology”. The event has the full support of the Union Ministry of Agriculture, the Ministry of Food Processing Industries (MFPI) and APEDA, all of which have a vital stake in increasing food production to meet rising domestic demand and to promote food exports. While the Agriculture Ministry has a plethora of schemes to encourage adoption of latest technology to raise productivity levels in the farms, MOFPI has its focus on checking colossal losses of harvested food grains and horticulture produce by promoting value addition through use of latest technology. APEDA’s role, on the other hand, becomes important as it has set its eyes on taking food exports from the country to a new high. The aim is to make India a “Food Basket of the world.” APEDA has set an export target of 15 billion dollars worth food products to be achieved in the years to come. Closely associated with organisation of the conference are other important bodies that are involved in producing and marketing of quality food products, both for the domestic and global markets. The organisations are: Indian Institute of Crop Processing Technology, Roller Flour Millers’ Federation of India, Solvent Extractors Association of India, Soyabean Processors Association of India, Indian Oilseeds and Produce Export Promotion Council, NSIC, All India Food Processors Association, Indian Biscuits Manufacturers’ Association and Bhartiya Krishak Samaj. Why the event is focusing on South India? In South India, farmers are growing a number of crops, but facing problems in enhancing production and value addition because of inadequate exposure to the latest technology, advanced production practices, logistics and marketing as well. Therefore the expo aims at bridging this huge communication gap among enterprising farmers of South India, machinery manufacturers, food product exporters & importers. Exhibitors from India and abroad will participate in the


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Marine exports touch a new high

Frozen shrimp continues to be major export item

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arine products exports have scaled a new peak. Provisional figures released by Marine Products Export Development Authority (MPEDA) show marine exports have crossed the expected $ 2.5 billion mark to touch a record $ 2.67 billion in 2010-11. The performance on the export front is despite a series of negative factors like financial instability in many countries, fluctuations in the value of the dollar, and near collapse of economies of some trade partners in Europe. The marine products exports in 200910 were $2.13 billion. According to MPEDA figures marine exports registered a growth of 25 per cent in dollar realisation, 20 per cent in rupee earnings and over 10 per cent in volume growth. The export performance was also aided by strong growth in value realizations, which increased by 13 per cent. Leena Nair, Chairman, Mpeda told recently that Indian marine products have been undergoing limited value addition compared to its counterparts. Seafood Industry in India has about

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Leena Nair, Chairman, Marine Product Export Development Authority

409 modern freezing plants out of which 221 are approved by European Union. The ability of the sector to develop newer value added products of international quality standards has been identified as key to the future of the industry, Nair said. Mpeda in its vision document had targeted that 75% of the seafood from India would be in value added form comprising ready-to-cook and ready-toeat items by 2012 and has been giving high priority to production and export of value added marine products from the country.

AgriBusiness & Food Industry - INDIA AgriBusiness & Food Industry w May 2011

— Prabal Gupta

Significantly, the authority has launched a new scheme namely technology up gradation scheme for marine products (TUSMP) in order to facilitate further investment in infrastructure for high-end value addition of seafood. The main bottleneck faced by Indian seafood entrepreneurs earlier was shortage of raw material for processing due to stagnation in sea catch and failure of coastal aquaculture.

Nine-month performance

Marine products exports from India crossed the US $2 billion mark in the first nine months from April-December, registering a growth of 6.60 per cent in quantity and 18.92 per cent in rupee value. In dollar terms, the growth was 24.70 per cent, compared to the same period last year. This was the first time India’s marine products exports had crossed the 2 billion mark within the first 9 months of a financial year. An MPEDA statement pointed out that the good performance of last fiscal (2010-11) defied many adverse global

Indian Seafood Industry


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Seafood Industry conditions. Among them it highlighted the recession that had gripped global markets during a greater part of the year, the fact that the rupee had appreciated against major global currencies including the dollar and the collapse of the economies of Greece, Spain and Portugal that had caused the de preciation of the euro against the dollar. Some of these problems in the global markets were overcome through favourable developments at home like substantial increase in the export of frozen shrimp and frozen squid during the year. Also, large-scale production of Vannamei shrimp, which was able to penetrate the global markets at the high-count lowvalue end, while increased productivity of black tiger shrimp at the low-count highvalue end also helped to neutralise some of the negative global impacts.

Major items

Frozen shrimp continued to be the major export item accounting for 46 per cent of the total foreign exchange earnings. Reflecting the overall increase in unit value realisation, shrimp exports grew by 41 per cent in dollar value, 35

per cent in rupee earnings and 13 per cent in volume. There was a major fillip in exports to the US. which increased by 83 per cent in volume and 140 per cent in dollar earnings. Shrimp exports to Japan also recovered and showed a growth of 17 per cent in volume and 43 per cent in value. Frozen fish was the second highest component in the export basket, accounting for 39 per cent of the total quantity and 20 per cent of the value. There was steady growth in volume and value of frozen fish exports this year as well. Frozen squid exports showed a growth of 49 per cent in quantity and 74 per cent in value over last year, while cuttlefish exports declined by 12 per cent in quantity while realisations improved by 16 per cent. The European Union remained the largest export destination with a market share at 26 per cent while the US regained the second spot with 16 per cent along with South East Asia, which also accounted for 16 per cent. China with 15 per cent, Japan with 14 per cent and West Asia with 5 per cent were some of the other major export destinations. The most spectacular

growth was reported in exports to the US, which grew by 104 per cent while quantity increased by 47 per cent.

Tsunami effect

The devastation caused by the recent tsunami in Japan’s north-east coast, however, could have a serious impact on India's seafood exports in the coming months. Anwar Ibrahim Hashim, president of the Seafood Exporters' Association of India, told reporters that the post-tsunami situation could adversely affect Indian seafood exports both in terms of volume and earnings. He said Japan had been a steady market for Indian seafood exports in the past. The tsunami could leave a telling effect on the business, “though it is too early to make an assessment of the situation.” The country imported about 10 per cent of the total Indian seafood exports of 678,436 tonnes during 2009-10 and had accounted for 13.06 per cent of the US$ 2132 million earnings by the domestic seafood export business. n

Changing trends of Indian seafood export

M

arine exports from the country have been making steady progress over the years. The growth has been markedly visible in terms of quantity, value as well as product range. Till the end of 1960, export of Indian marine products mainly consisted of dried items like dried fish and dried shrimp. Although frozen items were present in the export basket from 1953 onwards in negligible quantities, it was only since 1961 the export of dried marine products was overtaken by frozen items exports leading to a steady progress in export earnings. With the devaluation of Indian currency in 1966, the export of frozen and canned items registered a significant growth. Markets for Indian products also spread fast from the traditional buyers in neighboring countries to developed nations.

Market Structure

Before 1960, the markets of Indian marine products were largely confined to neighbouring countries like Sri Lanka, Myanmar and Singapore. The situation changed with the development of technology and rapid modernization when dried products gave way to canned & frozen items. The product shift also resulted in market shift. More sophisticated and affluent markets like Japan, USA, Europe and Australia became important buyers of Indian marine items. Several seafood processing units with modern machinery for freezing

Indian Seafood Industry

and production of value-added products were set up at all major centres in the country for export processing. For quite a long time USA was the main buyer for Indian frozen shrimp. But after 1977, Japan emerged as the principal buyer of the product, followed by the West European countries. Japan retained its position till 2001-02 as the single largest buyer for Indian marine products accounting for about 31% in the total export value. During the years 2002-03 and 200304, USA emerged as the single largest market for the country’s marine products. During the year 2004-05, the European Union has collectively become the largest importer of Indian marine products and it retained its position since then. During 2008-09, European Union (EU) continued as the largest market with a percentage share of 32.6% in dollar realization followed by China 14.8%, Japan 14.6%, USA 11.9%, South East Asia 10%, Middle East 5.5% and other countries 10.6%. Due to the prevailing economic recession perhaps, export to EU, USA and Japan declined by 6.08%, 10.18% and 8.80%, respectively. But other countries increased their import of Indian marine products during the period.

Source:

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Interview

“We look forward to cross US$ 3 billion-mark next year” This time, Indian seafood industry has shown a phenomenal growth in export crossing US$2.5 billion. This achievement has made the industry confident and it expects to reach even bigger figure in the coming few years. “Increase in export volume and value over the last four years brings tremendous enthusiasm to the sector. We look forward to cross 3 billion US$-mark next year and reach 5 billion US$ by 2015,” says Anwar Hashim, Managing Director, Abad Fisheries Pvt. Ltd. Appreciative of MPEDA’s support to the industry, Hashim, who is also the president of All India Sea Food Exporters’ Association, says, “Excellent support has been given by MPEDA and EIC under the Ministry of Commerce in this growth path.” In an interview with AgriBusiness & Food Industry, he spoke at length about the seafood industry. Excerpts: have caught up with state-of-the-art factories and cold stores.

What has been the overall performance of your organization and the seafood industry as well in recent years? Overall performance during the last four years has been very encouraging both for my organization and the seafood industry. Indian exports figures are given below: 2007-08 2008-09 2009-10 Quantity: 541701MT 602835MT 663603MT Value: 1899.09 1908.63 2105.60 (US$)

2010-11 700,000MT (provisional) 2670

Which countries do you think are highly potential for exporting marine products? As of now, our biggest markets are Europe, U.S.A and Japan. The present trend also favours Far East markets. What varieties of seafood and marine products are mainly exported from India in general and Kerala in particular, which is a major hub of seafood sector? In our export basket, when it comes to volume, fish comes first followed by shrimp, squid, cuttlefish and others. Value-wise shrimp consists more than 50% of the basket followed by fish, cuttlefish, squid and others. Kerala mainly exports cuttlefish, squid and fish. Was there any direct or indirect impact of global recession on the sea food industry? As our export products are staple

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Anwar Hashim food in the importing countries, the economic downturn did not hurt us much. Do you observe any change in the eating habits of international consumers when it comes to seafood items, which have led to a significant increase in export of marine products? As developed countries move from red meats to healthy seafood, the consumption grows and in turn the exports grow. Also seafood prices have not increased proportionately as meat, vegetables and cereals over the years. In your opinion, which regions in India are providing state-of-the-art infrastructure / technology in cold storages, logistics and other value-added operations, required for the export of quality seafood and marine products? Kerala, with a long seafood tradition, has better factories and processing equipment. Over the years, other regions

AgriBusiness & Food Industry - INDIA AgriBusiness & Food Industry w May 2011

Seafood is a booming industry. Being the president of All India Sea Food Exporters’ Association, what future prospects do you anticipate for this industry in the next five years? Indian seafood industry was in the doldrums with less and less sea catch. Farming sector, which provided relief with about 140,000 MT of black tiger and scampi went on a tail spin, with white spot syndrome. America imposed dumping duty and Europe asked Indian farmed shrimp to comply with special requirements. Industry had gone through a very tough time and from 2006-07 onwards, things turned better and exports started rising. Sea catch also improved as poaching by foreign trawlers came down. Our future lies in better management of the sea catch and increased farming of new species. Product development is another area requiring urgent attention. More global players should come for joint ventures with existing exporters and thus, making India a real processing and exporting hub next only to China. Increase in export volume and value over the last four years brings tremendous enthusiasm to the sector. We look forward to cross 3 billion US$-mark next year and reach 5 billion US$ by 2015. Excellent support has been given by MPEDA and EIC under the Ministry of Commerce in this growth path.

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Profile

Leading processor of quality quick frozen seafood

A

bad Fisheries, the flagship of Abad Group, was established in 1931 by Usman Mohamed Hashim. Having eight internationally accredited & certified factories, it is one of the largest processors of quality quick frozen seafood in India with processing capacity of 250 MTPD and cold storage capacity of 10,000 MT. Its factories are fully panelized & air-conditioned equipped with in-house pre-processing facilities. The company constantly introduces new technology to deliver best products and is committed to keep the old values of quality & trust. Products Abad offers a wide range of products including shrimps, squids, cuttlefish, octopus, mollusks and fish in bulk packs, consumer packs IQF, shrink wrap and tray pack. Canned: Abad C-Food Canning Co. Pvt Ltd is the first fully automated, panelized canning factory built according to EU standards and HACCP certification. The main objective of the factory is to pack canned tuna at source of raw material. Cochin has abundance of freshly caught Skipjack and Yellow fin tuna, which are mainly packed in frozen form and exported to canning factories in the far East and North Africa. We are processing both Skipjack & Yellow fin tuna – Chunk & Flake packed in EOE cans (imported from Thailand) in Sunflower oil or in brine (water) in 307 cans (185g net weight and 120g drained weight). Our 80 canning tuna workers were trained by a team of specialized Thai and Vietnamese technicians. All machinery was imported from Thailand and Europe, which have a production capacity of 70,000 cans per day. In near future, the company plans to

Indian Seafood Industry

introduce Mackerel and Sardine in its product range. Frozen: The new Chennai facility on the east coast, compliments the product line from the factories in Cochin & Trivandrum on the west coast. Our factories are located next to major fishing harbours or fishing villages which give us access to freshly caught raw material. High quality standards are maintained at every stage of processing and packing. Each of the eight factories is specialized in one or two products, enabling them to get optimal productivity and maintain a high quality. This has helped Abad Fisheries achieve the top position in terms of quality and customer satisfaction-- be it whole cleaned cuttlefish -IQF from Abad Exim and block for industrial use from our Nambiapuram facility, frozen Squid Whole from our Trivandrum factory, PUD & HLSO shrimps from Cap Seafoods, various items for Seafood Cocktail from our Malipuram plant, the various fishes from our Munambam factory, or skin pack products for the supermarket chains from Abad Exports & the HOSO Shrimps from its Bay Pride factory. Abad is looking at setting up processing & freezing facilities in Gujarat and north east of India. Landmarks * 1931 Abad Fisheries established. * 1957 Starts canning operation. * 1961 Freezing division started with 180 minute Plate Freezer. * 1979 Introduces faster 90 minute freezer. * 1985 India's first indigenous IQF Freezer. * 1989 India’s first Frigoscandia IQF Freezer.

* 1990 India’s first Frigoscandia IQF Spiral Freezer. * 1993 Abad Exim Pvt. Ltd., Abad's joint venture with FRICATAMAR, Spain starts commercial production. * 1995 Abad commissions India's first fully panelized air-conditioned factory, CAP SEAFOODS. Set up fully panelized, computercontrolled cold store with 3000 MT capacity at Aroor, Alleppey district. * 1997 Abad Exports Pvt. Ltd, the second fully panelized factory commissioned. * 1998 CAP SEAFOODS became India's first factory to get EU approval under new EU guidelines. * 1999 Abad Munambam, third fully panelized factory adjacent to Munambam fishing harbour, inaugurated. * 2000 India's first Cryogenic Freezer from PRAXAIR installed at Abad Exim. * 2002 Commissioned 2500 tonne cold store in Chennai. * 2003 Commissioned Abad Overseas Pvt Ltd, a joint venture with importers from Austria, New Zealand, Spain & USA. * 2004 Third fully panelized cold store with a capacity of 3000 tonnes commissioned. * 2005 Abad Pal Seafood International (L.L.C.) started operations in Dubai. * 2006 Abad C-Food Canning Co. Pvt. Ltd. (An Indo-Lebanese venture) started operations, which is the first fully panelized & automated plant in India.

Web: www.abadfisheries.org

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Profile

Ideal destination for your seafood needs D. Chandran, who hails from a family which took to fishing vocations for generations, has a natural flair for seafood business. A Diploma in Fisheries Technology & Navigation (DFTN) has given him a competitive edge over other players. From fishing in high seas using their 25 mechanized fishing vessels and supplying seafood to domestic markets & processing factories for export in early ’70s, the family switched over to seafood processing for the international markets, taking advantage of the technological innovations happened in seafood processing and freezing in 1977. In 1990, D. Chandran took a courageous step to establish Nila. His worldwide contacts along with experience and expertise in fishing operations, fish processing and product development have helped Nila to become one of the largest seafood exporters in India. Inspired by the excellent success of Nila SeaFoods Pvt. Ltd. and with the group’s annual turnover of 70 million USD, the group has evolved strategies to tap new markets in the new global scenario. Thus, the group has floated its new ventures-- Nila Cold Storage Pvt. Ltd in 1999, Amulya SeaFoods in 2001 and thereafter, Nila SeaFoods Exports in 2010. Nila SeaFoods Pvt Ltd The company mainly deals in shrimps and squid in all value-added forms. Some specialised shrimp varieties of Nila are Flower Shrimp, White, Black Tiger, Bamboo and Brown Shrimp. We take pride in our imported IQF CFS freezer and Blanching & Cooking facility for value added products such as Peeled and deveined shrimps, Peeled and Deveined Tail-On shrimps, Easy peel products, etc. The company is an EU approved seafood processing house with BRC ‘A’ grade certification and has got Green Ticket from FDA to export to USA. Non-shrimp items produced by Nila include raw, sashimi-grade

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D. Chandran Squid Fillets (Aori-Ika, Yari-Ika and Semi-Needle). The prime drive of Nila is to deliver the best quality products to its customers. We have received the National Productivity Award for three consecutive years. Products: Head-on, Head-less, Blanched, PUD and PD - Flower, White, Brown, Black Tiger, Sea Tiger, Vannamei, Poovalan and Karrikadi; Squid- Aori Ika, Yari Ika and Semi Needle Fillets and tentacles. It has become India’s first seafood company to receive the MPEDA QUALITY LOGO in recognition of its commitment to quality. The fishery products developed by the group captured the overseas markets in the far East, Europe, USA and South East Asia, and carved a separate niche for its well-known brands such as Nila, Amulya, Amica, Asha, Akini, Sana and Chanda. Amulya SeaFoods Amulya mainly concentrates on exporting Cephalopods, Lobster, Red Rings, Fishes, Crab and Octopus in bulk and value-added packs to countries like Italy, Spain, and UK. The Indian Govt. has recognised us as a Golden Trading House for our export performance. HACCP certification and BRC ‘A’ grade certification strengthen the company's drive towards world class quality standards. Under one roof, the plant integrates all aspects of seafood processing, pre-processing and storage

AgriBusiness & Food Industry - INDIA AgriBusiness & Food Industry w May 2011

units. Facilities such as ice making plant, cold storage and a fleet of insulated trucks ensure quality products every time. Products: CuttleFish -Whole, Whole Cleaned(Block & IQF) Fillets, Skewers, CF Roe Squid –Whole, Whole Cleaned, Rings and Tentacles; Big and Baby Octopus, Lobster - Whole, Meat and Tails; all kind of Fishes – Whole, Steaks and Headless, Tailless, Gutted; Whole Crab and Cut Crab. Nila Seafoods Exports The company is situated at the heart of the sea water aquaculture region of Black tiger and Vannamei shrimps in Pattukottai, Tamil Nadu. The Black Tiger from this region is most suitable for Cooking Quality Head-on shrimps and Distribution Quality Head-on shrimps. As the plant is located near seashore, the wild caught sea materials remain fresh even after being transported to the factory. Products: HON BT - Cooking Quality, Distribution Quality, HeadOn/Headless - Black Tiger - Premium Quality and Normal Quality, Vannamei, Flower, Sea Tiger, White etc. Nila Cold Storage It was established in 1999 to provide logistics support to the agricultural sector. It is the largest cold storage in South India with the capacity of 12,000 MT. The cold storage gives perishable food items a longer shelf life by preventing them from rotting due to humidity, high temperature and microorganisms. This reduces the loss due to wastage. We have provided separate cold storage for fruits and vegetables. Being managed by professionally qualified and experienced technicians, the stored materials are less prone to deterioration of colour, freshness and smell as long their shelf life lasts. E-mail:nsf939@gmail.com Web.: www.nilaseafoods.com

Indian Seafood Industry


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Profile

DOROTHY FOODS

Leading to a healthy way of life

E

ating sea food contributes a rich source for minerals, vitamins & proteins to the human body. Dorothy Foods specializes in producing and exporting the highest quality frozen and salted seafood products to various countries. Incepted under the leadership of Rafiq Usman Sait, an acclaimed exporter and dealer of fresh frozen foods and aquaculture, in the year 1989, Dorothy Foods has extended its wings worldwide and today exports to countries like USA, European countries, China, Japan, Korea, Taiwan, Asian and the African countries. Headquartered in Kochi, Kerala, Dorothy Foods has established branches in Mumbai and Veraval (Gujarat) and also established partnership with reliable EU Approved, HACCP implemented and FDA listed export houses and factories, and grown onto a regular supplier of high quality fresh and frozen fish & seafood to prestigious buyers. Spurred by intense competition from international markets, we have stood our ground and retained the good will of our regular customers by maintaining the quality of our products and dependability of our services. Dorothy Foods believes in carrying on its business through never flinching business ethics. It deals with every client as a valued friend and goes the extra mile to ensure his success. These underlying

principles of our existence have resulted in many long term relationships around the globe and our valued customers and clients count on us for the most reliable and professional service.

Products

Crustaceans: Black Tiger, White Shrimp, Vannamei Shrimp, Bamboo Shrimp, Karikkadi, Poovalan, Deepsea, Govinar, Pink & Brown, Scampi, Rock Lobster and Sand Lobster Molluscs: Baigai Long Type, Baigai Meat Raw, Green Mussel Meat, White Clam, Yellow Clam Meat Boiled, Yellow Clam Shell (on short neck) and Yellow Clam Cephalopods: Squid, Cuttle Fish, Octopus and Jelly Fish. Elasmobranchs: Black Pomfret, White Pomfret, Reefcod / Grouper; Snappers, Yellowfin Tuna, Skipjack Tuna, Little Tunni, Longtail Tuna, King Fish, Seer Fish, Ribbon Fish, Silver Croaker, Yellow Croaker, T.T. Croaker, Red Seabream, Black Seabream, Tiger Perch, Indian Mackerel, Horse Mackerel, Baby Shark, Puffer Fish, Barracuda, Japanese Threadfin Bream, Silver Sillago, Lizard Fish, Emperor, Hilsa, Katti, Leather Jacket, Malabar Trevalley, Indian Halibut, Sole Fish, Mahi Mahi and Sardine.

high quality product management by our dedicated staff have made us a name of acclaim in the global seafood industry. Our products are systematically inspected throughout the processing line and our quality control inspectors make sure the quality is up to your standards. In every product we sell, we try to maintain the highest levels of quality assurance, food safety, compliance with all government regulations and a genuine regard for the Earth's ecosystems. We hold our vendor and customer relationships very dear and consistently maintain integral business practice in a spirit of equality, dignity and professionalism. The company is committed to quality along the entire cold chain and all processing operations are handled under strict quality controls to comply with world class standards. The main features of our quality policy are: l Committed to supply exceptional quality, value and services l Follow strict quality assurance throughout our processes l Satisfy requirements and expectation of our clients Email: dorothyfoods@gmail.com Web: www.dorothyfoods.in

Value Added: Seafood mix, Kooth Fillet, Grouper Fillet, Pangasius Fillet, White Snapper etc.

Quality Policy

At Dorothy Foods, we strive to provide the best product, packed under the best conditions at the best market prices. State of the art technology and

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AgriBusiness & Food Industry w May 2011

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Indian Seafood Industry

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Profile

BELL FOODS

A renowned brand with global presence

B

ell Foods was established in the year 1968 at Cochin, the hub of the Indian seafood exporting industry, with its West coast factory just 3 km from the fishing harbour. A wide transport network Viju Puthusseril Vikraman Puthusseril with a fleet of insulated vehicles is employed to collect raw materials from almost all fish landing centres in India. Bell Foods, situated in the West coast, is one of the pioneers in the field of seafood exports with production capacity of about 35TPD and annual capacity of more than 7000 metric tons. The East coast factory has a production capacity of 25 TPD and annual capacity of more than 5000 metric tons. The company exports its products to numerous destinations all over the world. Bell’s processing plant has a fully equipped quality assurance department with specialized technical staff. Each lot of products is analysed for microbiological, chemical and organoleptic standards with CGMP, SSOP & HACCP-based own check systems. For production purpose, 100 % potable water conforming to EU standards is used. Added to these, there is a 1500 MT integrated, refrigerated warehouse facility. Little wonder, the EEC approved Bell, a world-renowned brand in seafood has found ready acceptance in the majority of the EEC markets. The varieties of frozen food on offer are as follows: Product Names

Product Specifications

Cuttlefish Squid

Whole, Whole Cleaned, Fillets Tentacles Whole, Whole Cleaned, Fillets, Tubes Rings, Tentacles, Stuffed squid Whole, Gutted Head-on, Head less PUD (Peeled undeveined), PD (Peeled & deveined) Head-on, Head less PUD (Peeled undeveined), PD (Peeled & deveined) Whole Round, Gutted, Head Less, Tail Less, Fin Less

Octopus Shrimps (Wild Catch) Shrimps (Fresh Water) Ribbon

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AgriBusiness & Food Industry w May 2011

Sardine Emperor Snapper Grouper Seer Fish Rohu Cat Fish Yellow fin Tuna Skip Jack Tuna Sole Pearl Spot Black Pompfret Sword Fish Lobster Baracuda Anchovies Mackerel Trevali Crab (Sea, Mud) Chill fish

Whole Round, Gutted, Head Less, Tail Less, Fin Less Whole Round, Gutted Whole Round, Gutted Whole Round, Gutted Whole Round, Gutted Whole Round, Gutted Whole Round, Gutted Whole Round, Gutted Whole Whole Whole Whole Whole Whole Whole Round Whole Round Whole Round Whole Round Whole, Cut Crab, Roe Whole in flake ice

Quality Objectives  International Accreditations  EU (European Union)  FSVPS (Russian Federation)  HACCP (U.S.A.)  The pre-processing, processing, manufacturing, packaging, storing, transportation, distribution, handling & offering for sale or supply of materials are carried out in the most hygienic way.  Hazard Analysis Critical Control Points (HACCP), thoroughly analyzing the potential food hazards in laboratory and organoleptic standards at every stage with traceability codes.  Potable water is used to ensure foodstuffs are not contaminated.  Every person working in food handling areas maintain a high degree of personal cleanliness.  Conveyances and containers used for transporting are kept clean and with proper maintenance.  No raw materials or ingredients are accepted with any additives or chemicals to preserve the quality.

Web: www.bellbrand.com E-mail: bellfoods@vsnl.com

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Indian Seafood Industry

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Profile

Ocean Wealth Exports

Produces safe seafood, aims customer satisfaction

I

n 2007, Anwar Sait, a seafood exporter with varied experience and expertise, with the backup support of his young and energetic son Adnan, established Ocean Wealth Exports, a modern seafood exporting company equipped with latest technologies. It is a leading exporter of quality marine products, supplies tongue tickling varieties of exceptional seafood from the Kerala coastline. Since its inception in 2007 as a modernized seafood exporting company, its focus has been on all kind of seafood products as well as value added products. The trend of changing dietary habits all over the globe encourages us to produce and supply value added products in convenience

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packs using modern technologies. Right from the raw material sourcing at Kerala’s major landing centres to processing and exporting, Ocean Wealth Exports processing line has always been under a stringent monitoring mechanism-directly supervised by the management, which makes it mandatory that all our products are processed according to HACCP guidelines. Our R&D team ensures the perfection of the process lines by continuous quality control in physical, chemical and microbiological properties. Strategically located in one and half acres land, the company has an exclusive processing zone for Cephalopods – Cuttlefish, Squid, Octopus and all kinds of fishes, especially for Tuna. It is built according to EEC & EIC Standards.

AgriBusiness & Food Industry w May 2011

We are mainly concentrated in fresh and frozen Tuna Loins which is processed & packed by skilled & well experienced processing technicians from Philippines. Our Tuna Loins has great demand all over the European Union, USA and South East Asia. Ocean Wealth has its own fleet of international standard insulated vehicles, modern IQF Machine of 4 tons capacity, Blast Freezers of 24 tons capacity, Plate Freezer of 8 tons capacity and imported ice flake machine. The aim of the company is to produce hazard-free and safe food products, thus achieving customer satisfaction. E-mail: oceanwealthexports@gmail.com Web: www.oceanwealthexports.com

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Investment

Tetra Pak expands India operations To invest Rs. 6 billion to set up new facility — Bureau Report

T

etra Pak, the world’s largest aseptic packaging manufacturer, is setting up a new packaging material factory in India at Chakan, near Pune. This will be the fourth green field facility worldwide of the company followed by Russia, China and Pakistan. The new state-of-the-art facility would be operational by December 2012. The US$136 million plant is designed to meet the growing demand for carton-packaged dairy beverages and fruit-based drinks in India, South and Southeast Asia and the Middle East. “The total investment in the new factory is expected to be around Rs 6 billion. This will make the Indian operations the biggest manufacturing facility of Tetra Pak in the South and South East Asia region,” said Tetra Pak’s Managing Director (South

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growth in other key geographies such as Southeast Asia and the Middle East,” he added.

Kandarp Singh Asian Markets) Kandarp Singh while announcing the company’s plan to set the new factory. “Besides supporting the expected strong growth in the Indian market, the plant will also support the company's

AgriBusiness & Food Industry - INDIA AgriBusiness & Food Industry w May 2011

Huge production The total capacity of the new plant will be 8.5 billion packages per year, with the potential of scaling up to 16 billion packages across carton packaging materials as the Tetra Brik Aseptic (TBA), Tetra Fino Aseptic (TFA) and Tetra Classic Aseptic, making it amongst the top five packaging material plants for Tetra Pak worldwide. “With a capacity of 8.5 billion packages per year, we are gearing up to meet the growing demands of consumers.” Driven by economic growth, a rising middle class and increasing demand for the convenience of packaged drinks, the market for carton-packed dairy beverages and fruit-based drinks is expected to grow from 757 million litres in 2010 to 1.3 billion litres by 2013 in India, Bangladesh and Sri Lanka. The same trend is taking place in South and Southeast Asia, where this market is expected to rise from 3.6 to 5.4 billion litres during this period. In the Middle East, it is expected to increase from 8.3 to 10.6 billion litres. “We are committed to supporting our customers to meet growing consumer demand in these regions and all over the world,” said Alejandro Anavi, Executive VP-Supply Chain Operations, Tetra


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Investment Pak. He noted that in addition to the convenience of packaged dairy beverages and fruit-based drinks, more people are becoming aware of the nutritional benefits of aseptically processed and packaged milk. “There is more demand in Asian markets for packaging than Europe and we are moving our focus to it,” he added. To date, Tetra Pak invested approximately US$32.6 million in the existing Pune plant, which has been in operation for nearly 14 years and is reaching its full capacity. “With strong economic growth, a dynamic consumer base and modernization of distribution and retailing, there is high demand across all categories,” said Singh. It is worth mentioning that worldwide the company has closed down operations in Switzerland, Italy and UK. Plant facility Among its facilities the new packaging plant will have a Machine Rebuilding Centre providing technical

Alejandro Anavi services such as start-up support and machine renovation to customers. It will also have a Product Development and Innovation Center (PDIC), which will have a laboratory, a pilot processing plant and a pilot packaging plant to meet the product formulations and development needs of customers. The new plant will also tout several

environmentally efficient features such as the use of renewable and nonconventional energy and materials, heat recovery to generate air conditioning and rain water harvesting. Tetra Pak is also launching new products like flavoured milk, mango pulp juice and candy ice cream. India is both the biggest producer and consumer of milk worldwide and although around two-thirds of milk consumed is unpackaged, the packaged proportion is expanding fast. The company, which sells its packaging materials to various companies, including Parle Agro, Dabur and Amul, posted sales of Rs 8.5 billion from India in 2010. According to Singh, now it is looking to nearly double its revenues from the country by 2013. The Switzerland-headquartered company employs nearly 22,000 employees and operates in over 170 countries. Its global revenues for the year 2010 stood at around 10 billion euros. n

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Profile

Good quality packaging solutions at affordable prices

M

ico Plast Industries Pvt Ltd are the pioneer in flexible packaging conversion in the southern States. It houses the finest state-of-the-art machineries to manufacture Plain, Flexo and Gravure printed poly products. Today the company has earned a high reputation and built a demanding customer base. The company is engaged in providing flexible packaging solution to varied industries like FMCG, processed food, Pharmaceuticals, garments , Industrial spares and many others. PRODUCTS Mico Plast excels in delivering high quality product. With high-speed extrusion, printing presses and conversion process under one roof, delivery time is reduced. We focus on consumer need and ensure that our packaging solution comes at a very affordable price without compromising on quality. We believe a better packaging helps deliver a better product to the consumer. Flexible packaging is steadily taking over rigid packaging, as it is easy to handle, delivers better graphics, occupies lesser space in the stores and enhances the shelf life of the products with its protective multiplayer packaging. The company is Specialist in Flexographic &

Gravure Printing. l Lamination Printed rolls & pouches l Stand up pouches l Ziplock pouches l LDPE Shrink films l LDPE bags l HMHDPE bags l PP bags Extrusion: The company operates wide ranges of high-speed extrusion machines to extrude following materials. Polypropylene (PP), High molecular High Density (HMHD) and Low Density Polyethylene (LDPE). These products are extruded from virgin raw materials, hence these are recyclable and eco-friendly. Printing: Mico Plast has installed wide ranges of Flexographic / Rotogravure printing presses to print various designs on Poly bags, Shopping carry bags, Polyester film, BOPP film, etc. Mico Plast has flexographic printing press ranging from 2 colours to 10 colours and top end Rotogravure 8 colour press and 6 colour press. Lamination: Mico Plast operates the latest high performance lamination machine to laminate various poly films, foil and paper. The company has a fully integrated in-house equipment to provide high quality

flexible packaging solution for various application like processed food, instant mix, confectionary snacks, spices, salts, grocery items, sea foods, chemicals, detergents, frozen meat products and garments. Bag & pouch making: We have wide range of bag & pouch making machines to manufacture poly bags with-- Die cut or D punch, Loop handle, Hanger, Side and bottom sealing, Side and bottom gusset, with flap & sealking and T-shirt bags. Standup pouch, Ziplock pouch, Three side seal pouch, Centre seal pouch with side gusset, etc. QUALITY ASSURANCE All operations are carried out by strict supervision by the floor supervisor to ensure the efficiency at every stage of the manufacturing process. After the completion of each process, the supervisors check the products and then dispatch it to the customers. Our commitment to quality and effort to satisfy the customers has earned us the loyalty of our customers and has led us to a path of continuous growth. MILESTONES 1982: Mico Plast was established as a partnership firm for manufacturing / trading in Reprocessed Plastic Graduals and Polythene bags. 1992: Production of Polypropylene lay flat tubes/bags, production of LDPE bags / sheets. 1997: Production of HM Carry bags / Shopping Carry bags, production of Multi Colour Flexo Printing. 2004: Production of Roto gravure Printing and Laminated Pouches and since then it has become a major operation for the company. 2007: High speed printing press with six colours and high speed solvent based lamination machine. 2011: 300MT capacity plant under construction. The company pursues its long term strategy of exploring potential investment in enhancing the value of packaging. Flexible packaging with its emergence as a strategic commodity and with its application in almost every aspect of life is the future of the industry. E-mail: info@micoplastindustries.com Web: www.micoplastindustries.com

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AgriBusiness & Food Industry - INDIA AgriBusiness & Food Industry w May 2011


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Profile

Managing demand with on Machine Seasoning

T

he next biggest flavour hit for the snacks industry is anyone’s guess and snack manufacturer’s will always follow consumer trends. However the next question should be; how can snack manufacturers efficiently meet the demand of the quick changing taste of the consumer? Variety is considered the spice of life and when it comes to snacks, new flavours are launched onto the market all the time as a way to differentiate from other brands. However, one of the problems for the snack manufacturer is that consumers will want their “old favourites” to still be available on the shelf as well as the new exotic ones. The second is to be able to keep up supply. Processing programs now have to juggle more flavours at the same time and deal with complex warehousing and distribution systems. Those manufacturers who want the ability to meet consumer demand need be able to change their processing programs quickly and efficiently without affecting quality. It is now evident that new seasoning techniques offer a way to offer increased flexibility. The advent of On Machine Seasoning (OMS) is giving snack manufacturers more flexibility when it comes to changing flavours to suit a wide variety of tastes. Over the ten years that OMS has been on the snacks manufacturing scene it has made good progress in seasoning accuracy and coverage as well as reducing overall cost. It is now considered by many in the industry as a logical progression for snacks processing in order to respond to the increasing demand for flavour variety. Heat and Control has made significant breakthroughs in the OMS concept with the FastBack® Revolution Seasoning System (RSS) and the Revolution proportional Gate System. The advent of the Fastback horizontal motion conveyor allowed for a more compact seasoning system to be developed, until then OMS were large and cumbersome. Once the RSS was developed, a more consistent feed system was needed in order to achieve the same coverage and quality as Process Area Seasoning systems or In-Kitchen seasoning systems. The Revolution Gate solved the feed consistency issues enabled Revolution OMS to offer

coverage and quality as good as if not better than In Kitchen seasoning systems. Manoj Paul is an OMS advocate and Manger [India and South Asia] for Heat and Control. “There are many opportunities to increase efficiency by using OMS, including meeting variety demand, maintaining high quality, reducing lost production time, reduced cleaning, gentle handling at greater capacity, and improved fulfilment and distribution” says Mr Paul. When it comes to variety in seasoning application, there is now the ability to run up to 100 different flavours. Revolution allows runs as short as 4 hours with a change over that takes only 30 minutes thus allowing for many flavours to be made in a short amount of time. Further, with several OMS units on one line, each OMS unit can be applying a different seasoning or filling different sized bags, or both, without stopping the processing side of production (the kitchen). Because you now have the ability to make more flavours in a shorter amount of time a “fresher” finished product can reach the shelf much quicker and spend less time in storage. This also suits the Just-In-Time distribution system. Less down-time due to faster cleaning and changeover provides more production capability. Cleaning is significantly reduced with changeovers at 30 minutes as compared with InKitchen seasoning systems that can take up to two hours. The FastBack conveyors don’t accumulate product build up and when it comes time for a seasoning flavour changeover the only part of the line that requires cleaning is the seasoning system and the weighing system. In order to reduce the possibility of cross contamination and allergen problems the Revolution drum is quickly removed and the drum can be exchanged with a clean one or cleaned away from the processing line. The seasoning applicator, Excaliber™, and seasoning hopper liner can also be removed without tools for easy cleaning or rapid exchange. With product transfer rates up to 12m / min (40ft/min) resulting in higher throughput for increased productivity and overall packaging line efficiency, the FastBack still provides less damaging and far cleaner conveying than vibratory conveyors. The hallmark of FastBack’s gentle horizontal motion is that it reduces product breakage and damage, and eliminates product segregation and “sifting” of product where smaller pieces settle to the bottom of the pan. Faster change-over between different flavours and increased capacity will impact fulfilment and distribution. Onsite warehousing of boxed product is reduced because orders are fulfilled and distribution channels are supplied more regularly (Just-In-Time). OMS, according to Mr. Paul is an important, if not key method for providing flexibility and improving efficiency in seasoning systems and OMS will be an area to watch as more processors adopt this seasoning methodology and develop programs that use it to its full capacity. Web.: www.heatandcontrol.com

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Profile

Strives for superior quality machinery, gives proper after-sales service

M

illmore Engineering Pvt. Ltd., with three decades of experience in rice mill engineering designs, manufactures and exports Modern Rice Milling Machinery, Paddy Parboiling and Drying Plants. The company has an installed capacity of machinery equivalent to Rs 150 million per annum. It has a state-ofthe-art unit in Chennai with facilities for manufacturing all post-harvest machinery like Paddy Parboiling and Drying Plants, Rice Processing Machines, Dry Maize (corn) Milling Plants, Dhal Milling Machines and Pre Cleaning Machines for all grains. The company is well versed in the basic engineering, design, fabrication, erection and commissioning of plant & machinery required for complete modernization of the rice milling industry on turn-key basis. It offers rice processing machines of capacities ranging from 1 to 20

Vibratory Cleaning Sieve

Butterfly paddy separator

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Vertical rice whitener

tonnes per hour and has been able to transplant the technological marvels in rice process engineering into the traditional rice culture of India. The company is also the sole distributor for Rice Processing Machines, Grain Silos, Oil Mill Machinery, Roller Flour Mills, Rice Color Sorters and Automatic Weighing and Packing Machines imported from China. The company has over two thousand customers spread across India as well as in several Asian, European and Latin countries. Millmore, with a sales turnover of Rs. 100 million, strives for superior quality and excellent performance of the machinery produced. Its prompt after-sales service network is another feature which makes the company's products the most sought after. The company's continuous R&D has also resulted in the invention and manufacturing of new machines of improved designs as per international standards. These machines were patented under the Indian Patent Act, 1971.

Pneumatic husker

Vertcal iron roller polisher

AgriBusiness & Food Industry - INDIA AgriBusiness & Food Industry w May 2011

The latest versions of AutoCad, Solid Works and Accounting software are incorporated in the computer to facilitate accurate and quick design & drawing, sales, production planning, purchase, storage, inventory control, despatch, invoice and financial control among others. With competent and experienced workforce in its fold, Millmore is a household name in the rice processing industry. Web: www.millmore.in


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AgriBusiness & Food Industry w May 2011

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Focus on Food Processing & Packaging Technologies, Food & Beverages Products

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Profile

Candy, Toffee, Lollipop, Ball Gum and Bubble Gum equipment from DSIL

P

unjab-based Dhiman Systems (India) Ltd (DSIL) provides a full range of cooking, forming and wrapping equipment -- from basic low capacity machine to sophisticated high speed machine-- for Candy, Toffee, Lollipop and Bubblegum products. All contact parts of these user-friendly machines with low noise level are made from stainless steel or brass. The range of machines includes: Continuous Cooker and Vacuum Batch cooker; Sugar Batch Kneader; Batch Former and Rope Sizer; Candy Forming machine from capacity 1000 kg to 6000 kg / 8 hrs; Cooling conveyors; Candy wrapping machines; Cut and wrap for toffee and bubblegum; Lollipop Forming machine for round and flat lollipop; Lollipop wrapping machines; and Ball gum and chicklet forming machine. DSIL develops wide range of Lab. machinery for R&D purpose and to assist the professional confectioners to set up their recipe formulations, take product trials and raw material tests. * Lab.Vacuum Batch Cooker Cap. 10 kgs./batch * Lab.SS Coating pan dia 450mm (18") with heater and blower * Lab. Sugar Pulling machine capacity 5 Kg/batch * Lab.Candy Forming 6" Plast-OPlast spring type machine with Batch former Two stage rope sizer, Four way

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conveyor and electrical control panel capacity 1000 kg/shift * Lab. Cooling plate size 600 mm x600 mm table top design * Lab. Former for Candy / Chicklet/ Ball /

Lollipop/ Toffee * Lab.Mixer and extruder for gum

Vaccum Cooker: It’s capable of preparing a wide variety of confectionery masses like hard candy, toffee and caramel. The machine comprises of cooking vessel with stirrer mechanism, which is driven through a geared motor. This is used for mixing the product during the cooking process. Coating Pan: The coating pan is basically a stainless steel spherical fabrication mounted to a frame and driven through a geared motor. All the machine parts including the electrical control panel are mounted to a base plate. Hot or cold air blowers can be provided as an optional extra if required. Pulling Machine: The pulling machine has been designed for the aeration of many different types of confectionery masses like hard candy, toffee and chewy sweets. It consists of a geared motor, which drives the two rotating pulling arms around a third fixed arm. The pulling arms are lined with teflon sleeves to prevent the product from sticking to them and to make cleaning easy. High Speed Candy Forming Machine: DSIL manufactures high speed candy forming machine suitable for filled or unfilled candies up to

AgriBusiness & Food Industry w May 2011

production of 6000 kgs in 8 hours depending upon shape, size and weight of the candy. Due to high pressure mechanism, the punching of design and logo is very sharp. Minimum size of candy could be 16mmx16mm and maximum 60mmx40mm. Maximum thickness of candy possible is 24mm. Power requirement is only 6 HP in all. With the installation of DSIL electrical control panel fitted with variable speed frequency controller, the speed of die, wire mesh and swivel can be varied according to requirement. With the installation of DSIL- Batch Former, Rope sizer, Three Way Conveyor and Electric Control Panel, this machine will work fully automatic. This machine can also be used for Bubble gum/ Chicklet forming and Toffee cutting. Lab.Candy plant: This table size machine, where total candy producing process is performed, consists of Candy forming spring type 6" die machine with Batch former Two stage rope sizer, Four way conveyor and Panel Board. Capacity of the machine is 1000 kg / shift of 8 hrs. Lab. Mixer and Extruder for Bubblegum: Lab.Mixing machine is a specially designed mixer to produce uniform mixing, blending & kneading of highly viscous, thick materials. The mixing action is a combination of bulk movement, stretching, folding, dividing, and recombining of the material. A heater is provided to the body for easy mixing of gum mass. Extruder is used for extruding the chewy gum masses. A heater is provided under the body for easy extruding of gum material. The extruded rope size can be adjusted by changing final die from which rope comes out. DSIL machines are easy to operate and are well accepted in Asian, African, Arabian and European markets. Website: www.dsilgroup.com


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Profile

PENTAGON Marketing

Provides complete packaging solutions

P

entagon Marketing is ideally located at Ernakulam, the commercial and industrial centre of Cochin, Kerala. The company is specialized in dealing with various packing machines. It uses highend technology and provides with a complete range of equipment. Pentagon, therefore, has been professional solution makers for auto packaging machinery. The company, specialized in dealing with various packing machines, provides quality solutions for auto packaging system like case erecting, loading, packing, sealing, strapping, labeling, stacking, wrapping and conveying. Pentagon keeps you stay one step ahead, holding your competitive

advantage in the new century. It has accumulated a good ample of experience in packaging supply for all types of industry. It can satisfy all its customers with high standards of service, competitive price and good quality. More than 500 satisfied customers are spread all over Kerala.

 

Product Range  Robot Pallet Wrapper SFERA  Fully Automatic Strapping Machine  Carton Sealing Machine  Semi-automatic Strapping Machine  Vacuum Packaging Machine  Automatic Continuous Band Sealers  Carton Sealing Machine  Shrink Wrapping Machine  Auto Marker  Pal Box Semi-automatic Palletizer

  

  

Videojet Dataflex Plus S-86-1 Automatic Strapping Machine XT-553 ARL Automatic Carton Sealer XT- 556SC "H" Type Semiautomatic Edge Carton Sealer XT-556 AC "H" Type Automatic Edge Carton Sealer XT-558F Semi-automatic Flaps Closing Carton Sealer XT- 558 AF Automatic Flaps Closing Carton Sealer for Random Size Mytho Pre Stretch Pallet Wrapper Synthesi Pallet Wrapper A333 Manual Metal Band Strapping Machine E-mail: pentagonchn@airtelmail.in Web: www.pentagonchn.com

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Report

Food & Agribusiness Conclave

Greater Role for PPP To ensure Food & Nutrition Security — M B Naqvi & Sumanta Basu

T

he latest census pegs India’s population at an awesome 1.2 billion, closely competing with China, the second largest economy of the world. With the addition of around 20 million population every year, India, the largest producer of horticulture products in the world, will soon run short of food unless the governments at both centre and states come up with a timely reform policy for the farm sector. Ushering in the second Green Revolution brooks no delay. And to do that successfully, issues like setting up of proper storage facilities and educating farmers on standard post harvest practices need urgent attention. The objective of giving the right to food and nutrition to every citizen demands minimizing post harvest losses to the barest minimum. And private sector has a serious role to play in this regard. Investment from the private players into agri and food sectors will not only help the country to ensure food security, it will also generate huge employment opportunities. This point was clearly brought out by Food Processing Industries Secretary Ashok Sinha when he said, “More investment from private sector into food processing sector can generate employment higher than any other sector.” He was speaking at the Food & Agribusiness Conclave, organised jointly by The Hindu Business Line and Yes Bank in New Delhi. Delivering the keynote address, Sinha said the government has a daunting task of meeting the country’s food security requirements, made more difficult due to lack of proper storage facilities resulting in staggering post harvest losses. The Secretary said his ministry, while taking the initiative of promoting a “vibrant” food processing sector in the country, aims at ensuring food security. Mega food parks Saying that the mega food parks are basically industrydriven, he added “government can provide financial aid up to a particular amount only, the rest has to be invested by private companies”. A mega food park project costs around Rs 120-Rs 130 crore (Rs 1.2-Rs 1.3 billion), of which “government will provide Rs 50 crore (Rs .5 billion) and the rest will be invested by the private players”. Out of the 30 mega food parks proposed in

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L-R: Saurabh Bhat, President & MD, Corporate Finance & Development Banking, YES Bank; Ashok Sinha, Secretary, Ministry of Food Processing Industries, GoI; Prof. Abhijit Sen, Member, Planning Commission, GoI and K Venugopal, Joint Editor, The Hindu Business Line.

the 11th Plan, “we are working on 13 parks”, he noted. Later, he also released a book comprising various knowledge articles on agriculture and food. Speaking at the conclave, Professor Abhijit Sen, Member of the Planning Commission, gave a broad message that agribusiness corporates should not expect any immediate bigticket reforms in foodgrain procurement, public distribution system or APMC (Agricultural Produce Market Committee) laws. They should plan their investments “assuming nothing will change with regard to these ‘big elephants”. Referring to the political resistance to allow private players to procure produce directly from farmers and to open up multibrand retail to foreign investors, Prof. Sen said, “For all the talk we have had on these ‘big elephants’, there has been very little movement. The movement, if anything at all, will be very slow and it would be more useful to assume that nothing will change.” Though he favoured lifting of the current ban on exports of wheat and non-basmati rice, he said if unrestricted exports are allowed, domestic prices will go up, putting pressure on food inflation. He also argued against shipping out grains from the


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Report FCI stocks, saying that the government should not get involved in exports as it did in the past, but leave it to private traders. Outlining the government’s ambitious investments in agriculture, he said, “In last 4-5 years, government has injected a huge amount of money—around Rs 1000 crore (Rs 10 billion) on an average every year-- into agriculture.” He felt the country would start reaping benefits from the National Horticulture Mission, which is mainly focused on promotion of fruits, in another few years. However, he was critical on implementation of both MoFPI’s mega food park project and Agriculture ministry’s terminal market schemes, which “have been on paper for around five years”. K. Venugopal, Joint Editor, The Hindu Business Line said being the first business newspaper to devote an entire page to agribusiness, the business daily has tried to bridge the vast information deficit that has bedeviled Indian farming and the business that builds on it. “Our partnership with Yes Bank has enabled us to enlarge our presentation, and our contribution to the development of this sector.” Need to be proactive Earlier, Saurabh Bhat, President & MD (Development Banking), Yes Bank, in his welcoming address, voiced his concern over low availability of arable land: Expansion of arable land has come to a stagnation. Population is increasing at an alarming rate. We need to be proactive in meeting our food security goals. Besides highlighting lack of enough storage capacity for all types of food products, he stressed on the necessity of micro-irrigation to check wastage of water. Cooperative banking is another need of the hour. “We truly believe, the agri sector has the potential to transform India into a leading agro economy of the world,” Bhat said. The objective of the conclave was to create a platform to synergise growth and transform Indian agriculture from one of subsistence farming to globally competitive agribusiness. It was an attempt, according to the organisers, not only to identify different agriculturerelated issues, but also suggest ways to overcome the structural and other limitations faced by Indian agriculture sector. The day-long event, attended by experts, policymakers, opinion leaders, and corporate executives, held two panel discussions on ‘Role of private sector in enhancing food security’ and ‘Achieving food security by building an efficient agri supply chain’. Prof. Sen's views found an echo in the speech of R. Mukundan, MD of Tata Chemicals, who felt that policy changes would come, but with a delay and “we will have to make things profitable in spite of that”. Mukundan highlighted the role of the private sector in seeds, fertilisers and pesticides, comparing it to the philosophical concept of Brahma (creator), Vishnu

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Report

(nourisher) and Shiva (enemy destroyer) of agriculture. “Seed is one area which requires higher attention” to augment farm production, he said. Companies, he emphasised, should shift their focus to “small and micro—be it irrigation, credit or anything else”. Besides seeds, fertilisers and pesticides, the private sector could do much more in areas such as extension services and agro-practices from laser levelling to drip irrigation, he noted. Engage pvt players Central government should engage private players in foodgrain procurement under its minimum support price (MSP) scheme and this will not only lead to a minimum 10 per cent savings in operational costs, but also reduce foodgrain loss, according to Sanjay Kaul, MD, National Collateral Management Services (NCMSL). Kaul noted that high procurement by government agencies leaves very little for the private sector, despite the visible inefficiency of government agencies in procuring and holding stocks much in excess of the requirements of the public distribution system (PDS). “Excess stocks should not be, as a matter of policy, held by the government. Any excess should be left to be procured and stored by the private sector. You just need to compensate them for the difference between the market price and the MSP,” he suggested. Thus, if the market price of wheat is Rs 1,000 a quintal, against the MSP of Rs 1,120, companies could be given a subsidy of Rs 120 a quintal. As against this, the government is now compensating the Food Corporation of India (FCI) for its total economic cost, which is estimated at over Rs 1,600 a quintal. “In the past, the FCI had assigned procurement operations to us (NCMSL) in Orissa and Madhya Pradesh and we had bought about 3 million tonnes during the 2005-06, 2006-07 and 2007-08 seasons. But that was done when they themselves needed paddy badly,” Kaul pointed out. He felt that NABARD should start a special window for long term concessional loans for warehousing and there is need for reforms in government distribution system. In 2010, the world had an estimated 925 million foodinsecure people, of which India accounted for 237 million (which means every 4th food-insecure person in the world is an Indian), said Gavin Wall, Country Representative, UN Food and Agricultural Organisation (FAO) in his address. “The figure (237

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million) for India is even higher than the 200 million for SubSaharan Africa.” Saying that agriculture is the key to poverty reduction, he further added, there will be only a few barriers to growth while working with better educated and well-capitalised farmers. There is lack of institutional support to small and marginal farmers. Biotechnology: a key factor? Speaking about how biotechnology could be an ‘enabler for food security’, Maharashtra Hybrid Seeds’ Chairman Raju Barwale said there are 29 countries growing GM crops on around 148 million ha area and 59 countries (75% of world population) consume GM food. Corn, soyabean, potato, canola, papaya, tomato, sweet pepper, sugar beat and some other crops are grown using biotechnology. During the panel discussion, Bhat noted that bank credit could play an important role in securing the right to food in various ways. There are around 9-10 million active kisan credit cards in the market. “Indian banks are doing good in agri financing.” Calling for building a strong backward linkage, G Chandrashekhar, Associate Editor of The Hindu Business Line suggested a slogan, “One ton saved is one ton produced”. The focus has to be, he said, on building an effective “farm-to-fork” supply chain. Incentivising private processing companies could go a long way in establishing a strong backward integration, which was not happening. “We need to find more money that can be invested in agri business and storage capacity building.” However, he expressed his concern that not many states have the financial capability and political will to come up with a proper agri business system. n


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guest column

FDI in multi-brand retail in cold storage? — G. Chandrashekhar

T

he Union Finance Minister, Pranab Mukherjee, deserves compliments for not succumbing to the corporate lobby pressure to open up multi-brand retail to foreign direct investment; and more importantly for taking on board serious apprehensions expressed by several groups about the utility of such investment in bringing about positive changes in the agricultural marketing set-up. From another angle, his demand for a ‘larger consensus' on the ‘complex' issue not only reflects the nervousness of the government in taking a unilateral decision, but also concern that such a decision can go frightfully wrong and wreck more damage than one can imagine. For building a larger consensus, the Centre will rope in State governments. The consultation process is sure to take several months, if not years. A critical issue while taking a favourable decision is whether or not to regulate the organised retail. This will be an even more contentious issue. So, FDI in multi-brand retail may not actually materialise this year; unless of course greater forces return to play and influence decision-making. It is argued that opening up the retail trade, especially food retail, for infusion of foreign capital would contribute to supply chain efficiencies, improve growers' incomes and help contain spiralling prices of essential food products. Complex reality While one can advance theoretical

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arguments about the likely benefits of large-scale organised food retail, the situation on the ground is so complex that it may not permit full realisation of what the theory suggests. Currently, in addition to State governments, stakeholders in the food chain include farmers, aggregators, processors, distributors, large and small traders as well as trade intermediaries such as commission agents, apart from retailers themselves, and consumers. On its part, the corporate world has clearly seized the business opportunity by pouring huge investments into accelerating the pace of retail revolution. The target consumers are obviously those with higher disposable incomes demanding ‘international shopping experience'. Retailers are meeting the burgeoning demand by investing in malls and supermarkets. Such investments create employment, improve the supply chain, improve the marketability of growers' crops and in general contribute to heightened economic activity. Logically, growers should be happy with the advent of organised retail because of the perceived benefits of ready market. However, not many are ready to appreciate that organised retail is prone to be ruthless when it comes to quality and delivery schedule. There is generally no compromise on this as retailers have too much at stake in the form of investment, turnover, customer satisfaction and so on. Surely, farmers defaulting on their commitment will not be treated with kid gloves.

AgriBusiness & Food Industry w May 2011

Pricing pressure Importantly, we need greater scrutiny of the key question whether organised food retail will deliver more remunerative returns to growers. There is suspicion, not about the intent of large retailers, but about their ability. Cost is an important consideration in the business plan of any organised retail. Setting up large-format stores is capital-intensive, given the high real estate costs. Operational costs are high too because of relatively high wages, high cost of power, cost of money and so on. On the other hand, customers are invariably cost-and-quality conscious. So, organised retail will strive to retain customers by ensuring competitive pricing and quality, if need be, by lowering profit margins. Simply put, as uncompetitive prices would drive customers away but friendly prices retain them, the retailers' degree of freedom is limited at the front-end. If capital and operational costs are high and trade margins thin, where will the retailer capture value to stay and grow in business? It will have to be, more often than not, at the back-end of the supply chain; and at the farthest end is the grower. While organised retail provides large and ready marketing outlet for growers, there is simply no guarantee that farmers will obtain remunerative prices. They would obtain marketdetermined prices; and they have little control over the way the market price is determined. Creation of total dependency has its associated risks to


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which growers will be subjected. The cat-and-mouse game between organised retail and small farmers is often an unequal fight, given the vulnerability of the latter. Free-markets have many votaries, but often those propagating free markets may never have been subjected to the market's cruelty. Given the unequal nature of the transaction and potential for exploitation, the government needs to step in. The State can actually play a catalytic and protective role. For instance, encourage contract farming which will bring together hitherto disparate farmers. A three-way partnership between organised retail, farmer groups and the government will accelerate production of market-driven standardised quality. Farmers should be able to obtain qualityrelated prices, something they never enjoyed. The partnership will ensure small farmers are not short-changed. Small retail's plight Small traders and shopkeepers seem to be the worst hit by organised retail and their interest needs to be protected too. Ironically, in terms of sheer numbers, the traditional 'momand-pop' shops will cumulatively have more customers than organised largeformat retail. Location, of course, is an important criterion. Small street-corner shops may be less favoured in areas with concentration of high-income groups or upmarket customers. There may be cases of relocation under such circumstances. The State can support small retail stay in business and earn livelihood. Imparting training to stay in competition with organised retail is necessary. For instance, small shopkeepers may explore innovative customer care methods (taking orders on telephone, home delivery of goods ordered, credit period). Importantly, the State can help small shopkeepers access finance at concessional terms for scaling up operations, improved display and so on. The State's affirmative action will go a long way in enabling and empowering growers and small retail. Courtesy: HBL

Lack of foreign investment holding back Indian retail

T

he Indian consumption story is still strong but lack of foreign investment could curb expansion of Indian retail, feel sector analysts. The Finance Minister, Pranab Mukherjee, earlier made it clear that the government was in no hurry to allow FDI (foreign direct investment) in multi-brand retailing, and the matter would be referred to the States, a move that put an end to the plans of many international players for now. The Indian retail industry is estimated to be between Rs 12 lakh crore and Rs 14 lakh crore, with about 5 per cent of its sales coming from the organised sector. The industry is growing at 10 per cent annually, with modern retail growing at 25 per cent. “It would continue to grow at those levels but FDI would have helped speedier ramp-up of the players,” points out Kumar Rajagopalan, chief executive, Retailers Association of India. Its inherent long growth period before yielding returns necessitates retailers with deep pockets to scale up and sustain their operations, explains N.V. Sivakumar of PwC India’s Retail, Industrial and Consumer Products division. Arvind Singhal, Chairman of Technopak Advisors, a consulting firm, says the stand taken by the government defies both economic and political logic,

as the government is grappling with inflation in the last two years. “The issue is not about growth of the modern retail industry. The bigger ground reality is how to make the producer-consumer and the farmer-consumer supply chain more efficient.” Foreign investment would also help create millions of jobs for those who are not well-trained or qualified to take up other careers, says Singhal. But with most large business houses involved in the retail sector, employment opportunities still look rosy, feels Rajagopalan. “What will, however, be curtailed is the facelift that international players can give to the sector. Our submission was for partial opening of FDI for retail. ” While consumers in India will have to wait to shop at some of their favourite international retail brands, “their appetite would still be fulfilled as Indian retailers are sharpening their merchandise offerings and coupling it with better consumercentric selling. Of course, international competition could have hastened the process of customer-centricity for retail,” Rajagopalan points out. The effect of the government deferring a decision on FDI will be neutral, says a consumer, “We won't miss what we don't have.”

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DAIRY

Dairy Processes & Technologies

New Avenues of Product Diversification — A. A. Patel

D

airy processing industry’s sustainability heavily depends on the products it turns out in the market. In a situation facing the Indian dairy industry where the demand for liquid milk is high, the scope for milk products is somewhat limited yet substantial. Thus nearly half of the total milk produced in this country i.e. approx. 150 million liters per day is consumed in liquid form. This includes consumption at the milk-producers level. Much of the milk product manufacture is confined to the nonorganized sector. Thus the organized sector plants handling about 55 million liters of milk per day have to rely 011 gains from the sale of much of market milk and some products. Therefore, diversification in the product portfolio is important in the context of both liquid milk and milk products. Improving the capacity utilization of the existing dairy plants from the present about 50% on an annual average would be the most obvious advantage of the marketdriven product diversification. Product diversification is possible through new product development and/or process-equipment development on one hand, and by adapting newer process techniques to existing operations, on the other hand. Dairy-process diversification can also be envisaged via manufacture of food ingredients from milk or its by-products. Recent developments in these areas of dairy processing are briefly discussed in the following write-up, This paper also includes some of the new processing techniques that can be potentially employed in dairy industry operations for improved products or new ingredients.

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LIQUID MILK PROCESSING The profitability of the market-milk industry has greatly improved with the rapidly growing market volumes in recent times. Most of the liquid milk sold is pasteurized milk as different (compositional) variants such as toned milk, double toned milk, standardized milk, etc. However, diversification through UHT (ultra -high treated) milk as a shelf-stable commodity growing steadily, has been a unique future of the market-milk industry. UHT milk has recently been further diversified into health dairy foods such as ‘Slim’ milk, ‘Omega-3’ milk and flavoured milk. There are several other potential ways in which expansion of the liquid milk industry could be sought towards

AgriBusiness & Food Industry w May 2011

greater sustainability, Examples in this regard include calcium-fortified milk and vitamin-fortified milk. Conventional sterilized flavoured milk is also growing fairly steadily in its market share in specific sectors; such milk with sugarsubstitutes would add to the marketing options for the liquid-milk industry. Considerable R&D progress has been made in the recent past at NDRI. Increasing awareness about health among the consumers also places a special emphasis on liquid milk as a carrier of health factors besides minerals and vitamins. Iron-fortified milk and Omega- 3 containing milk are noteworthy functional milks developed recently at NDRI. Milk as a vehicle for dietary fiber has also been investigated.


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DAIRY Studies are underway wherein compatibility of various herbal and other health factors in milk is the area of interest. In the next few years, definitive technological options should be available in terms of new versions of market milk aimed at satisfying the emerging consumer demands. DEVELOPMENTS IN DAIRY FOODS Health foods Functional foods (or, “health foods”) i.e. foods having ‘health-promoting’ or ‘disease-preventing’ properties in addition to providing one or more of the basic nutrients and/or energy, represent a fast growing sector of the food industry the world over. According to one estimate, the global functional foods market is growing annually at 7.4% and is expected to be worth US$ 176.7 billion in 2013. Japan and USA are the leading functional food markets. The major driving force behind the growth of the functional foods market is the growing consumer consciousness about health and the role of food in health even as they realize that the fast changing life-styles and dietary patterns put them at increased risks of diabetes, heart problems, hypertension, arthritis, obesity, cancer, etc. India is also witnessing perceivable growth in functional foods at 12-15% per annum with several new products such-as ‘Omega-3 milk’, probiotic products (i.e. products containing health-promoting bacteria), malt drink, dietetic sweets, whey-based sports supplements, etc. having recently appeared on the market. Among dairy foods, probiotic products are the principal candidates for imparting health virtues to milk products. Dahi, the traditional fermented-milk product, is growing in sales volume especially in the Northern and Western regions of the country. Probiotic dahi seems to promote this growth further. The significance of probiotic products could be gauged from the fact that recently a National Core Group on Probiotics has been formed on an NDRI initiative. Not only several probiotic cultures have been isolated, characterized and tested, but quite a few probiotic products have been developed such as probiotic dahi, yoghurt, lassi, cheese, etc. The commercial probiotic fermented milk drink as also probiotic dahi and probiotic ice cream are pointers to the potential of probiotic dairy

products in promoting the growth of the dairy industry. Several other functional principles (or, nutraceuticals) have been introduced into milk products through processing. Such components include herbs, vitamins, fiber, salt substitutes, sugar substitutes, and so on. A large number of functional dairy foods thus obtained are on the market in Western countries, and considerable developments have taken place in India, too. Arjuna herbal ghee developed at NDRI is a classical example of how the health negativity of milk fat can be countered in milk products by incorporation of nutraceuticals. Arjuna termenalia herb, known for its hearthealth promoting properties, also has antioxidant properties with the result that Arjuna ghee has appreciably enhanced shelf life. Other herbs currently being investigated for suitability in milk products include Vidarikand and Ashwagandha. Also, use of Aloe vera is being pursued towards development new functional dairy foods.’ Various dietary fibers or fiberingredients such as inulin, psyllium husk, Qat-fiber etc. have been incorporated in products such as yoghurt, kheer, low-fat spreads, and paneer. Cultured products obtained using fiber incorporation show reduced wheying off. Soluble fiber in the form of soya fiber has been used in functional paneer and quarg cheese. Long-life paneer carrying extra calcium, added fiber and phytosterol is a unique highvalue product. Among functional foods, sugarfree or reduced-sugar milk products occupy a special status in view of the ever-growing number of diabetics in the country. Sweet lassi has been prepared using sugar replacers. Other such dairy products developed at NDRI include rasogolla, Low-fat ice cream, kulfi and bum. Reduced-calorie misti-dahi with high acceptability and good shelf life has also been recently developed. Sugarfree Gulab-jamun has been prepared by soaking fried balls in a humectant syrup added with artificial sweetener. Low-fat products are also a growing trend in the dairy market. Notable developments in this respect are lowfat burfi and low-fat spreads including those with health ingredients such dietary fiber and omega-3 fatty acids. Low-fat paneer and fat-reduced cheese

are low-cost options in value-added dairy products. Low-fat spreads with directed modification of compositional characteristics are important to the market category of health dairy foods. Compositional manipulation has also been realized in form of ‘Low-cholesterol ghee’ (its cholesterol content reduced by 80%), the technology of which is in the process of being commercialized. It is thus evident that products addressing the health concerns in respect of diabetes and heart problems are at the forefront of new-product development aimed at meeting the growing consumer demand. Incorporation of cereals as a source of nutraceuticals into various milk foods has been the on-going area of research. Cereals such as millets (pearl millet and sorghum) and minor millets are considered valuable in functional foods. Properly processed grains with or without germination have been made into cereal-based lassi-like fermented milk beverages with a high consumer acceptance. Cereals together with whey proteins have been used in functionalbiscuits manufacture and in the production of a supplementary composite food for children. The product has been prepared by using Extrusion Cooking technology. Oats and barley-based functional mill< drinks (sweetened) are the products that appeal consumers in all age groups. Dry formulations of such coarse-grain based foods can serve as ready-to-reconstitute halwa mix. The traditional dodha-burfi is a unique dairy product in that it is highly nutritious and healthful. A fiber-fortified dodha-burfi developed recently makes it even more healthful. Incorporation of fruits and vegetables is another way in which dairy products’ value can be greatly enhanced as health foods. “Fruit dahi” and “fruit lassi” developed recently are important examples in this regard. Carrots have been incorporated into carrot-milk powder, biscuits, etc. Kinoe-whey beverage concentrate, a product that can be readily made into a refreshing beverage, has also been developed in a powder form. Several other fruit-whey drinks and vegetable-based soups including tomato-whey soup, mushroomwhey soup, etc. have been produced in liquid and/or dried forms. Research is also in progress towards development of dairy foods incorporating tubers like elephant-foot yam (or, jimikand/suran).

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DAIRY

Traditional dairy products Indigenous dairy products are largely manufactured by the traditional sector, and the organized sector hardly caters to the needs of the quality conscious consumer except for ghee. Therefore, manufacture of these products by the organized dairy plants would be a welcome step in the direction of product diversification. Large-scale production of indigenous milk products calls for the right kind of processing and packaging equipment. Several successful R&D efforts have been made in this area. Equipment has been designed and fabricated for mechanized manufacture of khoa, paneer, etc. Commercial manufacture of shrikhand and gulabjamun initiated by the National Dairy Development Board more than three decades ago was a remarkable beginning in ‘modernizing of traditional milk products. NDRI has licensed the khoa machine’s design for commercial fabrication and quite a few in the user industry have benefited from the scraped-surface heat-exchanger type machine. A similar unit developed by NDDB has also been able to promote mechanized production of khoa in the organized sector. Manufacture of khoa sweets and other milk sweets along the modem lines is yet to pick up. In the recent past, considerable developments have taken place in mechanized production of traditional sweets such as burfi, rabri, basundi, rasogolla, etc. and it is expected that soon commercially viable options will emerge for the dairy industry. In-package thermal processing has been used for the manufacture paneer and Milk-cake with extended shelf life and enhanced commercial viability.

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Increasing awareness about health among the consumers also places a special emphasis on liquid milk as a carrier of health factors besides minerals and vitamins. Iron-fortified milk and Omega- 3 containing milk are noteworthy functional milks developed recently at NDRI. Large-scale manufacture of paneer has been recently undertaken by the Gujarat cooperative dairy federation (GCMMF). There are a few other paneer manufactures who have given the muchvalued dairy product a high position on the market shelf. While hygienically manufactured and properly packaged paneer can be sold at a premium price, the economics of paneer manufacture dictate that the production cost is kept minimum and whey, the by-product from paneer production, is effectively utilized. Whey-based drinks and soups could easily lend themselves to promote whey, utilization. Convenience dairy foods Convenience, besides quality, is another driver of growth in the dairy products business. Increasing urbanization and the growling number of consumers with substantial disposable income, rising power of super markets, and changing food habits provide a major thrust to this product category in the dairy market. Convenience formulations of several indigenous milk products such as kheer, ras-malai, basundi, kulfi, rasogolla, payasam, etc. in form of ready mixes can potentially enhance the shelf life and safety of the products leading to increased opportunities for commercial marketing on a wide scale. Some of the new processes are based on nonconventional technologies such as ‘osmoair dehydration’. Some practical considerations in adopting new technologies and processes

AgriBusiness & Food Industry - INDIA AgriBusiness & Food Industry w May 2011

Before the new products and new processes can be adopted for commercial exploitation, certain problems need to be addressed. One such issue is of legal implications of product formulations comprising new ingredients and the problem of product identity. An example in this area calcium or iron fortification of milk where legal hurdles need to be overcome. Second, the necessary equipment not always is easily available for new-product manufacture. Lack of availability of packaging equipment for the required scale of operation is particularly problematic in many cases. Further, the health claims in respect of health foods are generally not proven through clinical studies as desired from the consumer point of view and as required for the purpose of product labeling. Such product assessment involves huge expenditures. NEW FOOD INGREDIENTS FROM MILK Ingredients derived from milk could be valuable not only in certain specific milk-based formulations such as infant foods but also in a variety of other foods. This will demand development of value-added, highly functional ingredients. However, most research efforts in the area of milk ingredient manufacture have been directed towards development of improved infant-food formulations. Attempts have been made to mimic human milk composition in the bovine milk with the objective of giving infants the optimum nutritional benefits. Alpha-lactalbumin, phospholipids, glyco-macropeptide (GMP), milkfatglobule membrane (MFGM), galactooligo-saccharides (GOS) are some of the examples of the value added ingredients derived from milk and milk products. . α-Lactalbumin Most traditional infant formulas contain 40% casein and 60% whey protein. One solution could be to increase the content of alpha-lactalbumin in the product. But alpha-lactalbumil1 is the dominant whey protein in human milk, constituting around 60%. The standard sweet whey proteins used in infant formula contain just 19% alphalactalbumin (AL). Hence, increasing the AL content is one important step in manipulating the protein profile of infant formula. α-Lactalbumin is a product


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DAIRY isolated from sweet dairy whey using chromatographic process technology. It provides all the essential amino acids and branched-chain amino acids (BCAM) needed by humans. It is also believed to playa major role in immunomodulation and gut maturation. The gut micro flora and neurological regulation are also thought to benefit from AL. Îą-lactalbumin is a fully soluble protein and the main source of the amino acid tryptophan, which is the precursor of neurotransmitters like serotonin, norepinephrin and dopamine. Serotonin is known for regulating appetite, mood, sleeping and waking rhythms, and is a precursor for vitamin nicotinic acid and the hormone melatonin. Lactoferrin Lactoferrin (LF) is a natural glycoprotein with iron-binding capacity. It does not coagulate during the cheesemaking process and is consequently found in whey. Lactoferrin is normally produced by means of ion exchange chromatography from whey, but it may also be recovered from skimmed milk. Due to its sensitive biological properties it is normally freeze dried in order to preserve its functional properties. LF has a GRAS status. Scientific studies suggest that it plays an important role in the human cellular immune system response and protects the body against infections. It also contributes to the primary defence system against invading pathogenic organisms, stimulates the immune system and the growth of various cell lines, and helps regulate the iron status in the body. It also serves as an antioxidant. Lactoferrin is already used in numerous applications and its potential is believed to be much more. Present and potential applications include: Infant formula, dairy products, meat preservation, dietary supplements/over the counter (OTC) drugs, pharmaceutical use, cosmetics, oral hygiene and animal feed. Osteopontin Osteopontin is a functional whey protein present in very small quantities in human milk but is believed to play significant role in immune response modulation/regulation in breast-fed infants. Small quantities of osteopontin are

also present in bovine milk. Aria Foods Ingredients, developed a purification method, launched the first commercial osteopontin product on the market. A process for isolation of milk osteopontin by optionally mixingâ&#x20AC;&#x2122; a milk material with a calcium source and separate the osteopontin containing phase from the rest of the milk material by pH adjustment. Whey-protein concentrates high in bioactive components Whey proteins differ greatly in their susceptibility to denaturation. Glycosylated proteins are generally less susceptible while immunoglobulins demonstrate high susceptibility, reducing their bioactivity. One of main aims is to minimise the loss of bioactivity caused by exposure to high temperatures or extremes of pH, resulting in protein denaturation or the blocking of amino acids. The use of sophisticated microfiltration technology is essential when milder heat treatment is employed. In this way, we can guarantee high microbiological quality of products. Whey fraction high in sialic acid Glycomacropeptide (GMP), a whey fraction rich in sialic acid, is derived from the splitting of -casein by chymosin/ rennet during cheese making. It is unique peptides composed of a chain of 64 amino acids with a molecular weight of 6,700 daltons. These peptides have no aromatic amino acids such as phenylalanine, tyrosine or tryptophan. Also they have a relatively high content of BCAAs like leucine, isoleucine, and valine. The combination of low aromatic amino acids al1d high BCAAs makes GMP an ideal ingredient in nutritional formulations for people suffering from hepatic diseases. The lack of phenylalanine also makes it ideal as a nitrogen source for treatment of people suffering from phenyl-ketoneuria (PKU). PKU is a serious genetic disorder leading to permanent brain damage due to failure to metabolize phenylalanine. Milk fat globule membrane (MFGM) Milk fat globule membrane is rich in many bio-active components. Phospholipids and gangliosides are important building blocks in cell membrane. These are also structural part of brain cells. Bovine milk has

got similar phospholipids profile to the human milk. A new innovation introduced by Aria Foods is the product called Lacprodan MFGM-l0, a whey derived protein concentrate consisting of a mix of bioactive components with the most valuable being MFGMconnected proteins, lactoferrin and phospholipids including gangliosides and sphingolipids. The protein and lipid profile of this newly developed product gives manufacturers an opportunity to design infant formula that more closely resembles human breast milk. The components concentrated in Lacprodan MFGM-l0 have been proven to benefit the gastro-intestinal system at various levels in combination with the fact that these components playa role in immune system stimulation and regulation along with neuronal and brain development. Furthermore specific phospholipids present in human colostrum, which are now also available in Lacprodan MFGM10, have been linked to the development advantages associated with breastfeeding. Protein hydrolysates Some children are allergic to milk proteins viz. caseins and whey proteins. Milk protein hydrolysis will help in prevention of this allergic response in infants. Varying degree of hydrolysis could be correlated dual antigenicity in order to develop optimum product formulation. NEW PROCESS TECHNIQUESPOTENTIAL AND STATUS Many technological developments have led to considerable advances in mechanization, automation, energy efficiency, hygiene, and quality. Extending the shelf life of milk and milk products without compromising on their quality and safety has been a prime goal of milk processors. In general, heat is j as a method to kill pathogenic bacteria to guarantee the food safety. However, wholesomeness of the food products is perceptibly lost in some conventional thermal processes. Therefore, some alternative ways of processing milk and milk products are being developed in order to retain their quality characteristics. High Hydrostatic Pressure High-pressure (HP) treatment of food products is a novel processing technique

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DAIRY in which the product is a vessel of suitable strength at a high pressure, generally in the range of 100 to 1000 MPa i.e. 1000 to 10,000 bar. Under pressure, biomolecules obey the Le ChatelierBraun principle (i.e., whenever a stress is applied to a system in equilibrium, the system will react so as to counteract the applied stress). Therefore, HP is considered an interesting alternative for milk heat pasteurization and possibly sterilization, because under HP conditions, micro-organisms (vegetative cells) and certain enzymes are inactivated and fresh flavour, colour, taste, and vitamins are only minimally affected. HHP technique offers several advantages. Some of these are minimal sensory changes in foods, homogeneity of treatment and the shelf life similar to that from thermal treatment, while maintaining al food quality parameters (nutrients, flavor, and sensory perception). Commercial production of HP treated foods, jams and other fruitbased product has been successfully practiced in Japan. However, full commercialization of HP for low acid food processing such as milk has not been realized yet mainly because of the inability of this process to destroy spores without added heat and absence of largescale industrial equipment. Much of the research relates to the effects of HP on constituents and properties of milk and possible applications of HP treatment of milk prior to the production of yogurt and cheese. Further research is required to evaluate the full commercial potential of HP treatment of milk through a understanding of the effects of pressure on preservation and the nutritional and technological values of milk. Several aspects have received only little attention to date, such as the reversibility of HPinduced changes in milk, the stability of HP-treated milk during subsequent storage, the heat and alcohol stabilities, and age-gelation behaviour of HP-treated milk, for example. Likewise, the amount of kinetic data regarding microbiological destruction as well as denaturation, inactivation, or formulation of compounds under HP-temperature conditions is insufficient. Pulsed Electric Field Pulsed electric field (PEF) processing has a great potential for successful shelf-life extension of milk, as it is

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applicable to liquids, has minimal effects on the nutritional, flavour, and functional characteristics of milk, and has a demonstrated ability to inactivate micro-organisms, The origin of PEF can be found in electroporation, a biotechnology process used to promote bacterial DNA interchange ting microbial membranes with induced electric fields. The main idea behind the use of Ids as a food preservation method is to take advantage of the lethal effect observed in electroporation to inactivate undesirable bacteria in food products. PEF technology is based on the application of pulses of high voltage (typically 20 to 80 kV/cm) delivered to the product placed between a set of electrodes that confine the treatment gap of the PEF chamber. PEF treatment can be conducted at ambient temperature for less than 1 second, and energy loss due to the heating of foods is minimized. Treatments of up to 400 ms at field strengths from 18.3 to 27.1 kV/cm generally results no loss of fat and water soluble vitamins except ascorbic acid. However, milk retains more ascorbic acid after a 400 ms treatment at 22.6 kV/cm (93.4%) than after either a LTLT (low-temperature long-time, 30 minutes at 63째C, 49.7% retained) or a HTST (15 seconds, -75째C, 86.7% retained) heat pasteurization treatments. On the other hands, protein are reported to get denatured to an extent of about 25% with a PEF treatment performed at electric field intensity of 22 kV/cm and with a number of pulses at 80. Thus the effects of PEF on milk proteins in whole milk may have significant implications for properties of products made from PEFtreated milk. Super Critical Fluid Extraction A gas when compressed isothermally to a pressure more than its critical pressure exhibits enhanced solvent power in the vicinity of its critical temperature. Such fluids are called supercritical fluids (SCF) or dense gases that reveal physicochemical properties intermediate between those of liquids and gases. In food processing, supercritical fluid extraction (SCFE) has received an increased attention for its advantages over the other conventional extraction techniques, such advantages include: (i) higher diffusion coefficient and lower viscosity of SCF than liquids, provides higher rates of mass transfer of

AgriBusiness & Food Industry w May 2011

solutes into SCF than into a liquid; (ii) absence of surface tension allows rapid penetration of SCF into the matrices pores, which improves extraction efficiency; and (iii) selectivity during extraction which can be manipulated by varying the conditions of temperature and pressure affecting the solubility of the various components in SCF. Carbon dioxide is the solvent of choice as a fractionating agent for milk fat due to its low critical temperature, which prevents thermal degradation of heat sensitive components (e.g. vitamins) during fractionation. In addition, CO2 is non-corrosive, non-toxic, non-flammable, inexpensive, and environmentally acceptable and is easily recycled and reused. SCF extraction technology has been us-ed to extract bio-active compounds from various food and food products. It can be utilized to extract lipids from foods, such as nuts and spices. It can potentially be used for extraction of phospholipids from milk fat globule membrane, fractionation of triglycerides in ghee and removal of triglycerides and cholesterol from cheeses. Ohmic Heating Ohmic heating (OH), also known as Joule heating, electrical resistance heating, direct electrical resistance heating, electroheating, and electroconductive heating, is one of the earliest applications of electricity in food pasteurization and is defined as a process where electric current is passed through the food to heat it. Heat is internally generated due to electrical resistance offered by the food material. Presently the focus of OH is on thermal processing operations, such as sterilization and pasteurization. OH can be used for HTST pasteurization of liquid proteinaceous food products which tend to denature and coagulate when thermally processed conventional technologies are used. Due to its extremely rapid heating rates, OH technology enables higher pasteurization temperatures to be applied, with consequent increase in refrigerated shelf life, without inducing coagulation or excessive denaturation of the constituent proteins. Even UHT heating has been studied in milk by employing this technique. Micro-/ Nano-encapsulation Micro-encapsulation techniques


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DAIRY have successfully been employed in the past for the delivery of sensitive bioactive compounds. Among these, emulsion based delivery systems are getting more attention now a days due to their targeted delivery and more absorptive in the human gut. They offer significant advantages over the solid matrix materials as they can be used in liquid food systems. However, ensuring stability of nano-emulsions in the complex food environment has been a challenging work. Many diverse range of foods have been designed for many years in the past using emulsion science and technology such as milk, cream, soft drinks, nutritional beverages, dressings, mayonnaise, sauces, dips, desserts, ice-cream, margarine, and butter. Most of these products are prepared using conventional o/w or w/o emulsion technique. In recent past, there has been tremendous interest to develop novel structures using emulsions to improve functional performance of foods. Various nutraceuticals and bioactive ingredients are being introduced into existing foods by encapsulating/imbibing them in the novel structures like liposomes, vescicles, nano-Iayers, multiple emulsions etc. Active ingredients which has been tried are traditional ones such as flavors, vitamins and minerals, or relatively novel ones such as probiotic microorganisms and various classes of bioactive compounds. Application of active ingredients in food products often requires innovative approaches because of their sensitivity to a variety of physical and chemical factors, which causes either the loss of biological functionality, chemical degradation or a premature or incomplete release. The situation is challenging not only because of the high sensitivity of many of the active ingredients, but also because of the complexity of many food products and the conditions prevalent in many food matrices. In addition, product safety, appearance, storage conditions, ease of preparation by the consumer, freshness and sensory properties of the food product are not to be compromised by the incorporation of the active ingredient. Many nutraceutical and functional food components would benefit from encapsulation in appropriate edible delivery systems, including vitamins,

bioactive peptides, antimicrobials, antioxidants, flavors, colors, minerals, and preservatives These functional components come in a wide variety of different molecular forms, e.g., molecular weights, conformations, polarities, and charges. In turn, differences in molecular characteristics lead to differences in physicochemical properties, such as solubility, partitioning, physical state, interactions, optical characteristics, and chemical stability. Consequently, different delivery systems are usually needed to address specific molecular and physicochemical concerns associated with each nutraceutical or functional component. Texturisation/Microparticulation of Whey Proteins Low fat products are finding best places in the market shelves for their potential health benefits. This trend is likely to become permanent in future. Whey proteins are used in a wide variety of food products for their functional properties and high nutritional value. These proteins are also considered as a good substitute for fat. While fat contributes significantly to the mouthfulness and creaminess to the liquid foods. Whey proteins can be made to give creaminess to the product; if they are modified in such a way to deliver desirable texture attributes. The discovery of microparticulation has opened up new opportunities for food producers all over the world. Micro-particulation involves ultrafiltration of whey to concentrate whey proteins, subsequent heating and then passing through microfluidizer in order to produce controlled sized of micro-particles of whey protein aggregates. Microparticulated whey proteins behave like fats and can be used as fat substitutes in dairy products such as cheese, desserts, yoghurt and ice cream. Such proteins considerably improve texture and taste in low-fat cheeses. Their use stands to bring down the cost of producing traditional cheeses. Sustainability in dairying calls for, among other things, meeting the needs of the consumer. In today’s scenario, consumers consciously look for ‘quality in the commodities offered to them. Safety, healthfulness, and convenience

are some of the key considerations besides the pleasurableness for the consumer in deciding on the acceptance of a product. The presentday dairy industry has a variety of options of product diversification both in liquid milk processing and product manufacture. A number of technologies have been developed in recent times that offer a definite scope for marketing increased volumes of liquid milk as also for ensuring growing market share in the dairy products segment. These include product groups such as fortified liquid milk, health foods, convenience formulations and traditional dairy products. R & D progress in this context has been commendable. However, certain issues need to be addressed. For instance, not all technologies are available as complete ‘technology packages’. For some processes, appropriate equipment sourcing including packaging machinery is necessary before they can be commercialized. In certain cases legal issues in terms of product identity and necessary permission need to be sorted out. Some of the health formulations need to be subjected to validation for health claims through animal and clinical trials. Nevertheless, several technologies are readily available for the industry to cash in on so as to ensure sustainability of diary processing in particular and dairying in general. Further, milk is a source of highly valued food ingredients suited to specific uses such as in infant formulations. Commercial manufacture of such products from whey as a dairy by-product would be a significant source of economic returns in dairy processing. Newer processes such as high-pressure processing, pulsed electric field processing, ohmic heating, supercritical fluid extraction, etc. hold a considerable promise in enhancing quality and extending shelf life of milk and milk products. However, further research is needed before such processes become practical reality in the dairy industry. n The author is associated with Division of Dairy Technology, NDRI, Karnal (Haryana) Source: Indian Dairy Association (East Zone)

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Dairy News

Distribution is the biggest challenge for Danone India

H

aving set up independent operations after its split with the Wadia group, Danone India's biggest challenge would be to set up a new distribution network to sell its curds and yogurts. Currently, the dairy major has a single plant in Baramati, servicing certain markets in Pune, Mumbai and Hyderabad. But having a pan-India presence may take a while with its limited distribution muscle. In fact, the brand is still missing from certain South Mumbai outlets and retailers claim its late entry is the main reason why the brand cannot be stocked, especially when early entrants such as Amul, Mother Dairy and Nestle have already occupied shelf space in the packaged curd category. Besides, Danone is currently offering a ‘me too' product with its range of low-

fat curd and flavoured yogurt, which its competitors already have. But the $17-billion Danone India's new marketing manager Swati Jain has a strategy in mind. “We have the potential to grow and there is shift in consumer preference towards convenience. Today, consumers treat yogurt like snack. There is still room in the mass market for yet another brand,” she said. Today, Danone's operations in India are overseen by the local marketing manager, while its MD continues to be based at the company's office in Munich. “We have to adopt a local strategy and while our MD is based in Munich, the base for the marketing operations is here in India. We have our own distribution now and have severed ties with Britannia and are in the process of establishing the cold chain for the brand,” Jian added.

In its two years of independent operations, Danone has also launched a smoothie brand, Danette, in cartons. It is also looking forward to launching some of its global brands such as Activia, a probiotic yogurt. Besides, Danone would be using more of BTL (below-the-line communication) to build its brand. For instance, it recently organised a fitness drive across Mumbai as a part of its ‘Stay Fittum Fit Campaign'. Danone had transformed few bus queue shelters into mini-gyms, aiming to garner awareness amongst Mumbaikars on the significance of exercising to stay fit. Bus shelters at Andheri Lokhandwala, Bandra Lilavati Hospital and Joggers Park have been identified for this on-ground activation, with maximum footfalls.

Government cannot ban exports with retrospective effect, says Court

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n a significant order, the Bombay High Court has held that the Union Government cannot ban exports of any product with retrospective effect, while allowing a private company to go ahead with exports of milk powder. It also said that such restriction cannot be applied to concluded contracts where letters of credit were opened prior to the imposition of the ban. The order was passed on a petition filed by Parag Milk Foods Pvt Ltd challenging the government notification issued on February 18 this year, banning export of milk products to meet the demand in domestic market. “By way of interim relief, we direct

the respondents (government) to permit Parag Milk Foods Pvt Ltd to export 414 metric tonnes of skimmed milk powder in accordance with the concluded contract supplied by irrevocable letters of credit issued on February 17 this year, a day before the ban was imposed,” observed a bench headed by Chief Justice Mohit Shah. The bench in its ruling further said that in case the petitioners were not able to make any immediate shipping arrangement for export of 414 metric tonnes of milk powder, it would be open to them to take necessary steps for extending the date of shipment and the letters of credit for this purpose.

The judges, however, said "We make it clear that it will be open for the Union of India to file further affidavit in reply if it finds that any of the letters of credit relied upon by the petitioner in this petition were actually not opened prior to February 18 when the ban was imposed". Petitioner's Counsel Prafulla Shah pleaded that Parag Milk was not challenging the ban on exports of milk powder but was questioning the government move to impose it with retrospective effect, particularly when the company had entered into a contract and opened a letter of credit with a foreign buyer.

Hatsun to expand ‘Unlimited' ice-cream biz

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atsun Agro Product Ltd will double its exclusive Arun Ice Creams Unlimited outlets by June, said R.G. Chandramogan, CMD, Hatsun Agro. The company is set to expand this business backed by its market leading presence in the dairy sector. The company is also widening its ice cream product line with new pack sizes in ice cream. The flagship ice cream brand of the

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dairy company has more than doubled sales in the last three years and is set to touch about Rs 100 crore in the current year, up from about Rs 35 crore. Last year, ice cream sales were about Rs 72 crore on total turnover of Rs 1,140 crore from branded liquid milk, dairy ingredients and milk-based products. Hatsun is uniquely positioned to aggressively grow its ice cream business

AgriBusiness & Food Industry w May 2011

as compared to most other players present in ice cream alone. As the largest private sector dairy, Hatsun which has the strength of its milk business, can expand this allied product, Chandramogan said. The company plans to open over 30 outlets, he said, adding to its 28 Arun Ice Cream Unlimited outlets, which are mostly in Chennai. The company will spend about Rs 7.5


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Dairy News The company has launched a 275-ml take-away ice cream tub that is suited for the modern day nuclear family as compared with the typical 500-ml or larger tubs. In 2008, it had launched a ‘no frills’ retail outlet to sell household goods using surplus space available at its milk collection centres. But with about Rs 1.5 crore sales a month, it did not gather the momentum Hatsun had targeted. So the company decided to focus on selling cattle feed to its dairy farmers. It has leased cattle feed factories and has started sales from the milk collection centres, the CMD added.

crore to increase the network. This range of outlets sells ice cream by the scoop and will be expanded to more cities and towns across Tamil Nadu. Arun Ice Creams in retail packs are available in more than 2,700 outlets in South India. Hatsun Agro, which sells the Arokya brand of liquid milk and a range of dairy products, initially started in the early 1990s with sales of Arun Ice Cream before expanding into branded liquid milk. Between 2000 and 2007, its ice cream sales stagnated around Rs 35 crore. The company is now a market leader in milk and has now focussed on ice creams also, he added.

HUL takes on Amul, Britannia in dairy biz

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fter foraying into the packaged milk segment with the launch of Kissan Soya Milk, HUL is now entering the branded dairy products category with the launch of Kissan Creamy Spread in 22 towns across the country. With this move, HUL will directly compete with Gujarat Co-operative Milk Marketing Federation’s (GCMMF) Amul and Britannia Industries milk products in the domestic markets. HUL has positioned its new launch as creamy spreads enriched with vitamins and has roped in Juhi Chawla to endorse its product in competitive markets. At present, the Rs 1,000-crore branded cream spread market in India is growing at a rate of around 20% per annum, and is dominated by Amul (70%) and Britannia. Meanwhile, Amul is doubling production capacity for its cheese spread brands and is extending its distribution network to 3,000 towns to sustain its competitive edge in this sector. On the

other hand, Britannia is planning to launch new products to provide value addition to consumers. With the aggressive foray of HUL, the market dynamics in the branded milk products in India will soon change. According to a HUL official, with its new launch, the company plans to get a strong foothold in the rapidly growing spread market. “Globally, Unilever is the market leader in spreads market and Kissan Creamy Spreads launch seeks to leverage Unilever’s global expertise in this category,” he added. On Amul’s strategy, RS Sodhi, managing director of GCMMF, said, “With increasing in production capacity of Amul Cheese spread, we are planning to enhance our advertising and promotional investment in this category. One more production and packaging line has recently been commissioned, in addition to the existing production plant.” According to Sodhi, as per the latest AC Nielsen retail audit report, Amul has more than 70% share of the cheese spread market in top 35 cities. “Across the entire country, market share of Amul Cheese Spread is more than 85% of the entire Cheese Spread

market in India,” he added. Across the road, Britannia Ltd is sharpening focus on driving differentiation, launching new products and providing value to consumers to drive volumes. “We have a structured marketing plan in place for all our categories. We have, in fact, launched cream cheese, calcium slices, flavored cubes and spreads in the last few months,” said a Britannia spokesperson.

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Dairy News

Jaypee to foray into dairy business

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fter making a mark in almost all areas it has touched so far, diversified conglomerate Jaypee Group has now set its eyes on the dairy sector, where the growing demand-supply gap is only set to widen further. The group, founded by Jaiprakash Gaur, initially plans to set up a onemillion litre per day milk processing plant near Mathura in Uttar Pradesh with an investment of Rs 100 crore. The capacity addition in the proposed plant, for which work has already been started, and increasing the number of plants, mainly in north India, would be decided depending upon the success

of the venture, said Group's Executive Chairman and Chief Executive Officer Manoj Gaur. Gaur said the current demand-supply mismatch in the dairy sector, which is mainly responsible for moving the price of the everyday essential northwards, enthused the Group to foray into the business. "We will try to replicate the success of Amul in North India." A clutch of other big names of the Indian Inc, including Reliance Industries, has also entered into the "lucrative" dairy business. With around 117 million tonnes production in 2010, India ranks at top in milk production in the world. According to a report by US Department of Agriculture, India's milk output is expected to touch 121.5 million tonnes in 2011. While the demand for milk has been growing by about six million tonnes a year, the annual incremental production over the last

10 years has been 3.5 million tonnes. A recent Crisil report pointed out that demand-supply gap of milk is likely to go up on the back of rising income and growth in per capita consumption. Gaur said the company has already acquired 25 acres of land near Mathura to set up the processing plant, which will be operational within the next 18 months. "We will produce and market all kind of milk and milk related products. The National Capital Region will be our main focus of operation initially. However, as we grow, we will sell our products in others parts of North India," he added. Jaypee will mainly source milk from the farmers in and around Mathura for processing and also have a company-run farm with around 200 animals to showcase the best possible model of rearing and treating cows to the farmers helping them to get the best possible returns. The dairy business will come under the fold of its agri vertical, Jaiprakash Agri Initiatives Company (JAICO), Gaur said adding that the brand name for its milk products would be decided later, but hinted that it would be associated with the name of the group's founder.

Soya-based fish feed accelerates growth

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ish as food can not only help generate employment and incomes for the rural population, but also help fight pervasive protein deficiency in the country. This was the message during an interactive meeting held recently between fish feed producers and aquaculture experts representing the American Soybean Association (ASA), in the presence of media representatives in Vijayawada. According to Dr Michael Cremer, global aquaculture technical director of ASA, feed-based technologies in practice in some of the Asian countries have shown beyond doubt that soyabased fish feeds have delivered immense commercial benefits. The work done so far in India has resulted in the country emerging as a significant producer of soya-based extruded floating feeds and sinking pellets for fish. “Indian entrepreneurs have invested in imported extrusion machinery to produce floating fish feeds,” said Dr Vijay Anand, technical director of ASA's Asia subcontinent aquaculture programme.

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Currently, there are as many as seven feed mills with installed capacity of 72 tonnes an hour which is set to soon expand to 203 tonnes an hour. Soyabean meal is the main source of protein in the formulations and the incorporation levels are in the 35-45 per cent range. Other ingredients used include rice-bran, broken rice, wheat bran, wheat flour, corn gluten meal and copra meal. Conceding that feed is only a part of aquaculture value chain, the aquaculture industry needs species diversification — in addition to the current carp and Pangasius — improved hatchery technology, refinement of farming system, diversification of farming system and improved fish marketing for better consumer acceptance, Dr Cremer said. India's fish production is approximately 8 million tonnes and the fisheries sector provides employment to about 15 million persons. Given that India has 7,000-km-long coastline and the biodiversity, the potential offered by fisheries sector is immense.

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Corporate News

Amul came up with another witty ad

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uick to capitalise on Kerala Chief Minister V S Achutanandan's description of Congress leader Rahul Gandhi as an ''Amul baby'', Gujarat Cooperative Milk Marketing Federation (GCMMF), which markets Amul, has released an advertisement with a punchline ''They both are Amul Babies!''. Achutanandan had recently hit back at Rahul who had referred to Kerala CM's advanced age during the election campaign. Achutanandan had said Rahul came to Kerala to campaign for ''Amul babies'' as Rahul himself was an ''Amul baby''. The witty advertisement released by GCMMF is the brain child of Dacunha Associates, a Mumbai-based advertising agency associated with the co-operative since 1966. The agency has virtually covered all spheres of life in India-- cricket, politics, Bollywood, business, sports and more--

to come up with Amul witticisms. " C a t c h y advertisements are a part of our campaign on the hoardings. One topic is released nationally every week, while another is specific to the region of newsfocus," a GCMMF official said. Rahul Gandhi has featured in Amul advertisements on a couple of occasions. The last time he became inspiration for Amul was when he had travelled on a Mumbai local train, the catch-line was "Chalti Ka Naam Gandhi". Seizing on the intense media coverage of anti-graft crusader Anna Hazare's recent hunger strike, Amul had come up with another ad "Hazare Qwaishein Aisi".

"We have got a very encouraging response from people from all walks of life to our campaigns featuring current news- makers and controversies. The feedback has been very positive to this unique concept," said GCMMF Chairman Parthi Bhatol. Santosh Desai, adman and Future Brands CEO, said that he liked the ‘Amul baby’ ad. “It’s cheeky and it is done in the best tradition of the work of its ind. I find it quite interesting.”

Small food companies focus on community-specific recipes

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ew things bind families better than home-cooked food. Cashing in on this sentiment, a clutch of small food companies is carving out a niche with city and community-specific recipes that pamper working women and non-resident Indians. So while big food companies such as ITC or Mother's Recipe may sell ready-to-cook dishes such as the spinach-cottage cheese preparation 'palak paneer', which is popular throughout the country, a company in Pune stirs up a spinach recipe that the city is known for. These small firms collectively cater to a variety of community-specific food demands, with ready-to-cook products ranging from Maharashtra's kothimbir vadi (coriander cutlets) and masale bhat (spicy rice) to Punjab's sarson ka saag and Vadodara's liliva kachories. Big brands such as Hindustan Uniliver, ITC, Parampara Spice Mix, Godrej Tyson,

Mother's Recipe, Gits Food Products and MTR cater to broad regional tastes in the in the ready-to-cook market, but find it unfeasible to enter the niche market of hyper-local tastes and recipes. "Students who go abroad for studies, the frequently flying IT population and senior citizens are the usual customers of these products," said Vaishali Thatte,

proprietor of Pune-based Agraj Foods, which is in the business of specialty flours and foods. Agraj sells 80 types of flours in Pune. Some of the ultra-local convenience foods are not only region-specific but also community-andcast-specific. Bangalore-based Megha, 29, looks forward to getting ready-to-eat 'sarson ka saag' from visiting relatives from Punjab. "I could never get that flavour while eating out, and since preparing it is a tedious process, I felt the best thing was to ask family members to send it," she said. Megha has been purchasing her supplies from Punjab State Cooperative Supply and Marketing Federation (Markfed), which sell convenience foods under the brand 'Sohna'. The brand is popular in the UAE, US, the UK and Canada, a Markfed official said. Vadodara-based Dipti Sanjeev Shah makes it a point to courier ready-to-eat

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Corporate News meals such as liliva kachories, khandvi and undia to her son in the US. "I realised that my son was feeling homesick and found this the best thing to cheer him up," said Shah, who also gets flat breads, breakfast food, snacks, curries and dinner from local player Jindal Agro. Jindal Agro specialises in Gujarati and South Indian food recipes. "We are exporting approximately 4,000-4,500 tonne of value-added frozen products

annually, which account for 95% of our capacity. The demand is excellent and we are growing at 50% annually," managing director Satvik Agarwal said. Brahmins Food Products, which manufactures rice and wheat products and curry powders, plans to launch spices that will be state and community specific, its MD said. Similarly, the Manjilas Group,

which markets Double Horse flour products, has found a good response for its Kerala specialities Idiyappam, Palappam and payasams. "Palappam usually takes 12 hours to prepare as it needs fermentation. But with our mix it can be made in an hour," said marketing director Vinod John. Demand for instant specialties had increased over the last one year, with more couples stepping out for work, he added.

Dutch group DSM rejigs India operations

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utch Group Royal DSM NV has restructured its business organisation in India and will bring the engineering plastics, composite resins, Dyneema (a superstrong polyethylene fibre developed by DSM) and Food specialities businesses as four independent units under DSM India Pvt Ltd. The Group also has plans to integrate DSM Nutritional Products, currently a separate legal entity into DSM India, and set up a full fledged innovation centre at Delhi which will be one of two such centres coming up outside of the Netherlands. Rajiv Chopra, President, DSM India and Managing Director, DSM Nutritional Products, said that the company had

charted out a high growth plan for its Indian operations and will invest $25-30 million in the near future and more as the business grows. “We want to treble our annual revenue from the current $ 200 million by 2015,” he said, adding that this will involve ramping up its existing business, begin manufacture of composite resins and also bringing in more products from its portfolio to address the needs in health and wellness and climate and energy, the areas in which it has a presence. The DSM-Kemrock joint venture will begin manufacture of resins at a location near Pune sometime next year. DSM

recently set up a factory at Ambarnath to make nutritional products for animals and is also scouting for a location to set up a factory to make nutritional products for human consumption. “We are also working on other initiatives such as flour, sugar and dairy products fortification,” Chopra said. Following the restructuring exercise, DSM Engineering Plastics will now be headed by Sanjay Jain while DSM Composites will be headed by Ajay Patwardhan. Both business groups will be located in Pune. DSM Dyneema will continue as it is and will be managed by a team of business development managers, based in Mumbai.

Vadilal plans to merge production & marketing arms “With the merger, there will be no need to have separate boards and even the support services and administrative costs of managing both the companies will come down.”

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he Validal Group is planning to merge its production and marketing companies. Currently the Rs 240-crore Vadilal Industries is the flagship company with units such as production, exports and processed food under it while the Rs 260crore Vadilal Enterprises is the marketing arm of the ice making major. Devanshu Gandhi, Managing Director, Vadilal Industries, told

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reporters, “We are working on merging the two companies of Vadilal Industries with Vadilal Enterprises. There is no point in functioning as two separate companies. With this, a lot of redundant functions in managing the operations will get reduced. There will be streamlining of operations.” Currently, both the companies are listed entities and have separate boards.

AgriBusiness & Food Industry - INDIA AgriBusiness & Food Industry w May 2011

Cold chain Investing Rs 80 crore behind its cold chain and ramping up its distribution this summer, Vadilal is gearing up for the season with a range of premium cones, cups and candies. “We have decided to increase the price of our cones, scoops and candies, which will now go premium at Rs 35. There will be high value addition in the impulse products, which are currently available for the masses at a price range between Rs 10 and Rs 15,” added Gandhi.


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Corporate News Being primarily a western region brand of ice creams, Vadilal is also increasing its presence in the northern markets through better cold chain and distribution facilities. “Considering we are primarily a Gujarat focussed brand, but now we are working in increasing our distribution in the northern markets where there is high per capita income.”

The ice cream major would increase its distribution network to reach out to 60,000 outlets through 750 distributors. Its foray into retail five years ago through the `Happinezz Parlours' is still restricted to the western markets. “We are again working on taking our parlours national and have franchised our retail operations,” he said. Pitted against majors such as Amul

Usher Agro enhances rice milling capacity

and HUL in the Rs 2,500-crore ice segment, Vadilal is now gearing up to increase its market share from 20 per cent to 24 per cent with its enhanced distribution and manufacturing capacities. Currently Vadilal and HUL are on par with a 20 per cent share in the category while Amul continues to be the leader with a 40 per cent share.

GI status to spice up branding of unique crop varieties

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Vinod Kumar Chaturvedi

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sher Agro, one of the largest rice millers in India, has increased its rice milling capacity at 5,43,600 tonnes per annum (tpa) with the addition of 2,91,600 tpa of enhanced capacity at its facility at Chhata, Mathura. Vinod Kumar Chaturvedi, Managing Director, Usher Agro, said, the company has increased its capacity to process and produce par-boiled rice to 450,000 tpa, which is one of the largest in the country. “The increase will have a positive bearing on the top line and the profitability of the company.” Besides rice milling, Usher also has wheat flour milling facilities of 75,000 tpa and captive co-generation power plants based on rice husk, a bye product of rice milling activity.

he Spices Board, under the Ministry of Commerce, has registered pepper, cardamom, chilli, ginger and turmeric as products that have unique flavour and attributes because they are grown in a specific geographical region of India. This geographical indication (GI) status will help branding these spices as premium products that cannot be matched by similar crops grown in other parts of the world. The board has obtained GI status for Malabar pepper, Alleppey green cardamom, Coorg green cardamom and Byadgi chilli. The applications for Guntur sannam chilli, Cochin ginger and Alleppey finger turmeric are pending. These spices have a specific colour, flavour or other characteristics that distinguish them from other similar spices grown elsewhere. For instance, the Byadgi chilli from Karnataka is known for its colour while the Guntur variety from Andhra Pradesh is popular for its sharp pungency. The Cochin ginger has less fibre and lends itself well for powdering. "The GI mark will help in preserving the uniqueness of the product and prevent other countries from taking advantage of it. Several countries are importing pepper from here and re-exporting it as Malabar pepper," said Philip Kuruvilla, MD of Indian Products, a leading spices exporting firm. The practice is not limited to pepper. Alleppey green cardamom and Cochin ginger are the two varieties which the competing countries Guatemala and Nigeria are trying to cash in on. "The spices grown in a particular region will have special qualities, which can be exploited for increasing the exports. This is why we have prepared a list of spices for GI registration. We have got the approval for some and for the others the process is on," said Spices Board chairman VJ Kurien. Often the name refers to the trademark and may not always indicate the exact place of origin. This is the case with Alleppey finger turmeric, Alleppey green cardamom and Cochin ginger. These types of turmeric and ginger are grown in the Idukki district but the name Alleppey has stuck on because the latter used to be the main port for shipments till the emergence of the Kochi port.

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Research News

Fruits and vegetables 'tan' skin without the sun

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hile most of us already know that eating several servings of fruits and vegetables is good for our overall health, did you also know it's good for your skin? And, if you eat enough, you may even develop a healthy glow not unlike that suntan you'd normally pick up at the beach. Researchers at the University of Bristol found that carotenoids, or yellow and red antioxidants thought to impact the immune system and fertility, play a role in healthier skin. The study, published in the journal Evolution and Human Behavior, revealed that those with more glowing skin had higher levels of carotenoids. Carotenoids are commonly found in fruits and vegetables such as yellow and red peppers, spinach, apricots and melons. "The deep colored ones, such as tomatoes, carrots, peppers and melons, contain potent antioxidants such as the carotenoids that are known to give the skin a healthy glow and have been shown to help protect the skin from the damaging effects of sun exposure," said Paula Simpson, celebrity beauty nutritionist. "Most nutrition and health associations recommend a minimum of five servings of a variety of fruits and vegetables per day."

"Most people in the West think that the best way to improve your skin color is to get a suntan," said Dr. Ian Stephen, the study's lead researcher from the University of Bristol, in a statement. "But our research shows that eating lots of fruits and vegetables is actually more effective." Fruits and veggies are nutrient packed foods and contain a "synergy of nutrients, enzymes and antioxidants that are the building blocks to the production of healthy new skin cells," said Simpson.

"New skin cells are produced every three to five weeks [slower as we age], and if you are eating the right nutrients, these cells will be healthier." The same is true for animals. For example, female birds often gravitate to the males who exhibit brighter and healthier color. This bright coloration of the male's feathers is caused by the same antioxidant carotenoids that affect human skin tone. During the second part of the study, scientists set up a computer program that allowed participants to alter the images of 51 faces by increasing or decreasing their skin tone based on suntan or carotenoids. The participants were told to make the faces look as healthy as possible. In the end, individuals preferred the carotenoid skin color over the look of a suntan. "Our study shows that not only do people use color cues to judge how healthy other individuals are, but they are accurate when they make those judgments," said Professor Dave Perrett who heads Perception Labs at the University of St. Andrews in Scotland where the study was held.

Major poultry health conference in Mexico

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he Mexican branch of the World Veterinary Poultry Association (WVPA) will be hosting the XVIIth World Veterinary Poultry Congress in Cancun, Mexico on 14â&#x20AC;&#x201C;18th August 2011. This global congress on poultry health matters will be a major international gathering of poultry veterinarians and poultry health scientists and will feature a comprehensive programme that includes Keynote Lectures on subjects as diverse as salmonella, campylobacter, coccidiosis, avian influenza, immunity, antibiotic resistance and bird welfare. In addition, there will be symposia on avian influenza, mycotoxins and food safety. Details of the conference can be sourced at www.wvpc2011cancun.org.

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Research News

Indian Defence scientists develop hi-tech foods

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tress-relieving biscuits and antifatigue food bars will soon appear on more supermarket shelves as scientists at the Mysore-based Defence Food Research Laboratory (DFRL) commercialise food technology created for the armed forces. Their goal is to make convenience foods better than what nature has to offer. From memory enhancing chocolates to performance enhancement foods, the laboratory is employing a small army of food scientists to help make the next generation of foods healthier and tastier, with a more understandable ingredient list. "The food habits of people are changing fast. Working couples have less time to cook," said Dr A S Bawa, director of DFRL, one of the laboratories

of the Defence Research & Development Organisation (DRDO). So the laboratory which caters to the varied food challenges for the Indian Armed Forces is now bringing these hi-tech foods to the wider market, by transferring technologies to entrepreneurs. "One high energy chocolate bar can help a human being survive for days without food," said Bawa whose laboratory resembles a kitchen. Carefully labeled jars hold freeze-dried mangoes, dehydrated vegetables, curries and fresh salt. Interspersed within are glass beakers, large syringes, digital thermometers, food testing kits and bio-reactors used to test and certify the food. During the Kargil War, DFRL supplied

tonnes of food packets to provide sustained nutrition and control hunger. "These are foods designed to keep a person alert even during stressful situations such as war, tsunami and earthquakes," said H V Batra, associate director, DFRL. The Lab has already completed over 550 technology transfers to nearly 220 entrepreneurs, who have built businesses on them. "The technical know-how has been transferred to leading food manufacturers such as MTR Foods, lTC Ltd and companies like ADF Foods apart from many entrepreneurs," said A D Semwal, scientist at DFRL. The institute is now setting up an incubation centre in Kerala to speed up the process of commercialising these technologies.

Dairy products and sunshine for healthy bones

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hen it comes to our bones, important nutrients that need to be considered include calcium and vitamin D. Dairy products are the richest source of calcium and we should eat three portions a day to make sure we are getting enough calcium. One portion is a glass of milk, a carton of yoghurt or piece of cheese the size of a matchbox. Low-fat dairy products are a great choice as they contain the same amount of calcium as regular dairy products for less fat. Vitamin D is also vital as it helps the body absorb calcium. It is sometimes called the â&#x20AC;&#x153;sunshine vitaminâ&#x20AC;? as it is

formed by the action of sunlight on our skin. Unfortunately we canâ&#x20AC;&#x2122;t always depend on the sun to give us enough vitamin D year round, and sunscreen creams also prevent us making vitamin D. Food sources of vitamin D include oily fish (such as salmon or trout), eggs and fortified foods such as milk and breakfast cereal. Physical activity and in particular weight-bearing exercise is also important for healthy bones. Examples of weight-bearing exercise include walking, running up and down the stairs and dancing. Other factors that can increase the risk of osteoporosis include being underweight or overweight, excess caffeine intake (more

than 400mg per day - one mug of instant coffee contains about 100mg) and excess alcohol intake.

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