beverages & food processing times mar'13 (i)

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India’s Ist Fortnightly Newspaper For Beverages, Food & Allied Industries

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The ministry of agriculture and food processing industries has so far approved 30 mega food park projects out of which 14 projects have been accorded ‘final’ approval and the remaining 16 projects have been accorded ‘in-principle’ approval.Out of the 14 projects which have been accorded ‘final approval’, two projects in Andhra Pradesh and Uttarakhand are partially operational while two others in Assam and West Bengal are nearing completion, according

to information provided by the ministry. Five more projects, one each in Punjab, Jharkhand, Karnataka, Gujarat and Tripura are expected to be completed in 2013-14, while the remaining five projects in the states of Madhya Pradesh, Bihar, Odisha, Tamil Nadu and Maharashtra are likely to be completed in 2014-15.The ministry said on an average, each project is expected to have around 30-35 food processing units with a collective investment of Rs 250 crore that would eventually lead to an annual turnover of about Rs 450-500 crore and creation of direct and indirect employment to the extent of about 30,000 persons.The new mega food park scheme provides for both forward and backward linkages. The minimum land requirement has been enhanced in the new scheme from 30 acres to 50 acres. The maximum grant admissible is Rs 50 crore in case of a mega food

park.The mega food park projects are implemented by special purpose vehicle (SPV) which comprises at least three independent members including at least one food processor. The mega food park scheme, according to the ministry, operates on a hub and spoke model in which central processing centre is net worked with primary processing centres and collection centres.

Food park project to yield Rs 500cr

The Kerala Co-operative Milk Marketing Federation Ltd (MILMA) submitted be-fore the Kerala High Court that the ‘Fresh and Pure’ label, seen on Milma milk pouches, is a symbol regis-tered in the name of the Na-tional Dairy Development Board of the federation.

Milk unions all over India are using the symbol in their milk packets duly authorised by NDDB. The term ‘Fresh and Pure’ is not a creation of Milma and is not confined to the state.

The High Court had warned Milma to stop using the label if it wished to continue converting skimmed milk powder into milk and selling the same as fresh milk. Un-less skimmed milk powder is added, it is not possible to produce toned/ double toned milk, as per the norms pre-scribed in the Food Safety Standard, because the milk produced by the cross-bred cows in Kerala contains lower Solid- Non-Fat con-tent, Milma submitted.

Milma further submit-ted that it is not import-ing skimmed milk powder directly, and that the task is being carried out by the NDDB. The packaging of milk without processing, and its distribution to a large number of households is not possible, Milma submitted.

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Kamani Oil Industries is one of the leading manufacturing organization in the field of specialty oils and fat products in India. The company is the first Indian vegetable oil industry to be HACCP certified (Hazard Analysis and Critical Control Point).

The company is dedicated to providing highest quality oils and fats to the customers and has a wide range of products for specialized applications to the Food, Pharma, Cosmetic and Nutraceutical industry. The company has a state of art production facility which is being constantly upgraded to ensure production flexibility. The product range includes whole range of vegetable oils, Bakery shortenings, Margarines, Confectionery fats, Dairy fat replacers, Nutritional and healthy oils.Recently we had an opportunity to have an interview with Managing Director of the group Prakash Chawla a well known personality in the Indian edible oils & fats business.

Due to changing eating habits, bakery products gained popularity among masses

What is the growth rate of Indian bakery industry you see in India?The Indian bakery industry which is one of the largest segments in the food processing industry has witnessed an annual growth rate of more than 10 % during the past years which is very encouraging. This bakery industry caters to a vast consumer segment ranging from children to adults and most of the bakery products especially cakes and cookies are targeted for children, hence the demand would keep escalating. The per capita consumption of bakery products in India is still low at 1-2 kg per annum, whereas in the advanced countries the consumption is between 10 and 50 kg per annum. The increase in disposable income and growing health conscious the shift is toward packaged food and hence bakery products (Biscuits).

What are the products you have for bakery industry from your company?We in Kamani believe in providing solutions to our customers and hence the approach is of “Problem Solving”, In the bakery industry after closely working with the bakers to understand their specific requirements and needs. After a lot of experimentation and research, our R&D has developed K-Lite – a Trans-free aerated multi-purpose and multi-functional bakery shortening which finds application in various bakery products and performs better than any commercially available margarine or bakery shortening. K-Lite is a new age Bakery fat that effectively performs the function of 3(three) fats - Cakes, Cream and Cookies. We also have a wide range of specialty bakery fats for other applications – K-Puff Vanaspati for puffs or khari, Komplete Vanaspati and K-Meetha Vanaspati for cookies, biscuits and pej butter. We have recently introduced trans free fat Pufflite Vanaspati for making puffs.

Do you think corner bakery culture is growing in North India also after South & West?

The phenomenon is across India, North is not an exception, the point is to be noted that within the segment. Health is the driving factor hence if the corner bakery plays the “Health Card” it will be more successful. As Indians, we have different taste profiles so to have a single product/brand to appeal to all Indians will be difficult and hence the corner bakery shop with its localized offering would be more successful.

Will it be beneficial for the allied segment (smaller bakery) or they should only focus on big bakeries/bakery chains only?The bakery segment majorly comprises of bread, cakes, biscuits and cookies. At present the bread and the biscuit industry accounts for 82% of the total bakery products in the country. The other products that are gaining importance in this category are – khari or puffs, buns, toast, rusk, etc. The market comprises of – organized sector and unorganized sector. Of the total production of bread and biscuits, only 35% is produced in the organized sectors and rest in the unorganized sectors (small bakeries). Hence we need to focus on the small players also as they form the major chunk of the market.

How important is to use healthy ingredients for a bakery product manufacturer?Due to changing eating habits of people, bakery products have gained popularity among masses. Consumers are gradually becoming health conscious and are demanding healthier foods and mothers want their kids to eat healthy. The bakery industry can now capitalize on health-conscious consumers and promote healthy bakery products by incorporating ingredients which would enhance the nutritive value of the product. The bakery products can be fortified with vitamins, minerals, dietary fibre, zero-calorie sweeteners etc. and can also be enriched with omega 3 fats and other

phytonutrients. The bakery sector should now focus on technological innovations and new ingredients to make value added products.

Your company has been working closely across the country with all sizes of bakeries, do you think the awareness about FSSA has reached to these places?Food safety and security has been a major focus and area of concern in our country. Some issues related to food regulations and safety has been taken care of thanks to the implementation of The Food Safety Standards Act of India (FSSAI). The main objective of the FSSAI is to develop a food safety management system – to ensure manufacturing, distribution and

sale of safe food to the consumer. At Kamani Oil Industries Pvt Ltd, we keep educating our customers both big and small on quality, food safety and hygiene at all levels of food processing. The awareness is gradually increasing amongst the bakery industry on the importance of these food regulations and FSSAI on its part has also taken up the challenging task of assuring the consumer that the food consumed is safe and healthy.

Will it help the bakery owners if they follow FSSA, in the long run?The Food Safety Standards Act of India (FSSAI) has issued notifications to amend the Food Safety Standards Regulations 2011 and has put a limit of 10% maximum

for trans fats in Vanaspati, Bakery Shortening and Margarine. The content of trans fats also needs to be declared on the labels of packaged foods. This new amendment has prompted the bakers to use low trans or trans free fat products and as consumer demand for healthy products continues to grow, bakers must evaluate their product lines to make sure they are satisfying this demand. The Indian bakery industry now needs to gear up and develop healthier bakery products relevant for the diverse needs of the people not only in the urban but also in the rural areas.

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The State Cabinet approved a dedicated policy for the food processing sector that promises 25 per cent subsidy excluding

land cost for mega food park developers with a subsidy cap of Rs 15 crore.For small food park developers, the policy allows 25 per cent subsidy with a cap of Rs 2 crore. The policy also envisages up to 33 per cent subsidy for food parks proposed in the economically backward KBK (Kalahandi-Bolangir-Koraput) region and for projects with women and people from SC/ST categories as promoters.Units in the food processing sector will enjoy five per cent interest subsidy for a period of five years and VAT (valued added tax) waiver for 10 years, according to the policy provisions. Besides, the state government will offer financial assistance in the range of Rs 2-Rs 5 lakh. The state has received a string of investment proposals from biggies in the food processing sector like ITC, Parle Agro Indo Nissin, Future Foods and Nestle. The State Cabinet gave its nod to the establishment of Odisha Green Energy Development Corporation, a subsidiary of Odisha Hydro Power Corporation (OHPC). The chairman of OHPC will head the corporation. The green corporation is being set up keeping in view the enormous potential for the renewable energy sector in the state. The potential for green energy has been assessed at 16,230 MW with soar power having the lion’s share at 14,000 MW followed by wind power and bio-mass at 1,700 MW and 350 MW respectively.The proposed policy e-auction of liquor shops was also approved by the Cabinet. The auctioning system is expected to be put in place in two to three months. Presently, there are 1,500 liquor shops across the country with the state earning an annual revenue of Rs 1,700 crore.

Odisha Cabinet clears food processing policy

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Research shows many Americans believe that when they consume a

product containing whole grains they also are getting a generous dose of fiber, which more often than not, is not the case, according to a group of nutrition experts who met in Chicago this past October. As a result, the group recommended whole grain products are an ideal food to be supplemented with fiber food ingredients in order for them to qualify as “good” or “excellent” sources of fiber. The public health implications of inadequate fiber intake prompted the formation of October’s roundtable meeting of nutrition researchers, edu-cators and communicators entitled “Filling America’s fiber gap: Probing realistic solutions.” The meeting was sponsored by the Kellogg Co., Battle Creek, Mich., and a synopsis of the meeting was first published on-line on May 30, 2012. It will appear in print in the July 2012 issue of The Journal of Nutrition. The group, which included Roger Clemens, Ph.D., current president of the Institute of Food Technologists, and adjunct professor of pharmacology and pharmaceutical sciences at the University of Southern California School of Pharmacy in Los Angeles, met with the shared interest of identifying challenges and realistic solu-tions for translating current fiber guidance into practical advice for obtaining fiber from a variety of sources, both whole and enriched, in order

to help Americans better meet their daily fiber recommendation. The meeting included presentations by the participants, with a focus on their areas of expertise related to the public health concern about low-fiber intakes, followed by discussions of the challenges of adhering to current dietary guidance, and opportunities for filling the fiber intake gap.Consideration of the effects on energy intake was also a focus because of the emphasis on energy balance in the Dietary Guidelines for Americans, 2010.

“All of us agreed that all fiber-containing foods should play a role in helping Americans meet their daily fiber needs,” Dr. Clemens said. “With evidence that fiber intake is closely linked to energy intake, there was recognition of the challenges of increasing fiber while attempting to reduce energy intake, as is the goal for many who are overweight. “This prompted the need to focus solutions on immediate and realistic small-step changes that could be implemented within current eating patterns. Considering that nearly all Americans fall short of meeting their fiber needs,

yet meet or exceed their daily recommendations for grain-based foods, our discussions centered on opportunities to improve the fiber content of and choice of foods within this group as a strategy with an immediate potential for increasing fiber intakes without exceeding energy goals.” Dr. Clemens said the round-table experts agreed there is a great deal of confusion among consumers and even many nu-trition authorities regarding the relationship between whole grains and fiber. To help differ-entiate and

reduce confusion, there is a need in future research and education to clearly delineate between the two terms to avoid the interchange of the food (whole grains) with the nutrient (fiber) and to provide clearer direction for choosing grain foods that provide at least a “good” source of fiber. He cited the example of the updated nutrition standards in the National School Lunch and School Breakfast Programs that include new directives that all grains must be “whole-grain rich,” yet do not address a fiber requirement for defining a food that is “whole-grain rich.”

“By not using fiber as a marker of whole grain quality, this could be a missed opportunity for clarifying the role of fiber in providing key health benefits in whole grains,” he said. The amounts of fiber in grains, fruits and vegetables recommended by the Dietary Guidelines for Americans 2010, to close the fiber intake gap vary considerably, and many choices within these food groups are not considered “good” or “excellent” sources of fiber, and therefore won’t help close the gap, explained Dr. Clemens. This is why modifying grain-based foods makes sense. “Americans are already meeting, or for that matter, exceeding, daily total grain recommendations; thus, a shift from low-fiber to higher-fiber grain-based foods may be an achievable public health goal,” Dr. Clemens said. Further supporting the idea of boosting the fiber content of grain-based foods are results from a modeling exercise using data from the National Health and Nutrition Examination Survey (NHANES) 2003-2006 that measured the effect on calorie intake when fiber-containing foods Americans are currently eating were increased to meet fiber recommendations (maximum increase of five times current intake). Although fiber intake increased in all adults to 28.5 grams per day, the calorie intake increased by more than 1,000 calories per day. Alternatively, by adding fiber food ingredients to grain foods that are naturally low in fiber to make the

foods have 2.5 grams or 5 grams of fiber per serving, men and women increased daily fiber intakes to 25 and 39 grams, respectively, without increasing calories. Adding fiber to grain products is not a new concept, as many bread and cereal manufacturers have included oat fiber, beta-glucan and psyllium in their product formulations. What is a 21st century phenomena is the inclusion of novel fiber food ingredients such as inulin, soluble corn fiber and resistant maltodextrin. The roundtable experts agreed more emphasis needs to be placed on consuming adequate fiber, regardless of whether fiber occurs naturally in food or is added. Both forms become part of the total fiber content of the food and both can have a positive effect on human health, said Dr. Clemens. It’s no wonder that the second edition of “Fiber food ingredients in the U.S.,” published by Packaged Facts, a division of Marketresearch.com, Rockville, Md., said the market for all types of fiber food ingredients will increase indefinitely, as the market for fiber-enhanced foods is still in its infancy. The report said the addition of fiber to grain-based foods is driving the growth and will continue to do so. Further, there is a great deal of room for growth across almost all food categories, which presents an opportunity for the many — more than 50 — different fiber food ingredients currently available to formulators.

Add fiber to whole grains by Donna Berry

Stability, taste neutrality and bright colours – that’s what Doehler’s “Crystal Clear Co-

lours” stand for. With its new range of brilliant, crystal clear “warm or-ange” and “shining yellow” hues, Doehler is opening up innovative potential for the beverage industry. For the first time, “Crystal Clear Colours” allow the use of colours with neutral taste profile in clear beverages, without adding any ar-tificial colours. In addition “Crystal Clear Colours” are characterised by outstanding stability under the influence of light, heat and vari-ous pH values. With “Crystal Clear Colours” Doehler has achieved a breakthrough in the development of carotenoid-based colours for clear beverages. Their outstanding

Doehler files patent for innovative carotenoid-based “Crystal Clear

Colours”properties make the “Crystal Clear Colours” ideal for a wide range of beverage applications. They offer an excellent opportunity to distinguish beverages from other products in the beverage aisle, es-pecially in the still drink and wa-ter plus segment. “Crystal Clear Colours” allow clear beverages to shine with a colour spectrum rang-ing from strong, warm orange hues to bright, sunny yellows. As a globally active manufacturer of natural ingredients, ingredient systems and integrated solutions for the food and beverage indus-try, Doehler also offers colouring concentrates, natural colours and colouring emulsions for premium foods and beverages alongside its “Crystal Clear Colours”.

New Mumbai Innovation Centre demonstrates continued commitment

to developing markets

Givaudan, the world’s leading fragrance and flavour company, today formally opened its new Innovation Centre in Mumbai, expanding local capabilities and resources to bring innova-tive and creative flavour and taste solutions to its customers in India.For the first time Givaudan’s sensory science, flavour sci-ence and foodservice expertise will be available from within India. Food and beverage cus-tomers across the sub-continent will benefit from faster access to Givaudan’s world leading tools and technical services, including Indian consumer-pre-ferred flavour profiles such as mango, dairy and Indian spices and cooking cues.Representing an investment of over CHF 3.7 million to meet rising customer demand for Givaudan’s industry lead-

GIVAUDAN EXPANDS FLAVOUR CAPABILITES IN INDIA

ing technical services from across the Indian sub-continent; the new Mumbai Flavour Innovation Cen-tre is also the latest demonstration of Givaudan’s on going commit-ment to expanding its creative and technical capabilities in In-dia. Givaudan just completed the expansion of its flavours powder blend capacity at its Daman pro-duction facility and is planning a

new flavours manufacturing site at Pune.At the official opening of the fa-cility, Mauricio Graber, President Flavour Division, said: “Growth in developing markets is one of our strategic pillars and we aim to increase our total sales in these markets to 50% by 2015 across all categories. We will achieve this

growth by investing in high growth markets like India, through supe-rior local talent, capabilities and consumer understanding, together with world class infrastructure.“The expansion of our Mumbai Flavour Innovation Centre enables us to offer sensory science, flavour science and foodservice expertise directly from India for the first time. Together with our in depth understanding of the local Indian market, we are able to offer closer collaboration with our customers, creating true consumer preferred taste experiences to differentiate their products in the marketplace.”India is one of over 40 countries in which Givaudan has a presence. In 2012 the company grew its busi-ness in developing markets by 13.2% in local currencies; it aims to increase its total sales in these markets to 50% by 2015 across all categories.In 2013, further investments will be completed in Asia Pacific with the expansion of new spray drying capabilities in Indonesia and the ground breaking of a new savoury facility in China.

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To prevent fruits and vegetables from spoiling, there is a need to take up food processing on a

priority basis, Tariq Anwar, Minister of State for Agriculture and Food Processing Industries, said.Speaking at the Diamond Jubilee celebrations of Lucknow-based Indian Institute of Sugarcane Research, Anwar said, “As much as 25-40 per cent of fruits and vegetables produced in India are spoiled due to lack of storage facilities, which directly affects the farmers.”“Our bottlenecks are not in production, but in storage,” added Uttar Pradesh Agriculture Minister Anand Singh on the occasion, which is also being celebrated as National Sugar Fest 2013 and AgroTech 2013.

“One way of cutting down losses is by giving priority to food processing,” Anwar said. Recalling a recent International Summit of Agriculture Ministers in Germany, Anwar said, “In the interactions with agriculture ministers...they said that food processing is given priority, hence, be it fruits, vegetables, or any type of grains, the quantity that spoils is low, almost negligible. In India, only nearly 7-8 per cent food is processed, while in European countries, somewhere it is 50 per cent, 60 per cent and even 70 per cent. Then, their product is also exported and brings in foreign exchange. All this, either directly or indirectly, benefits the farmer,” he said. “If we promote this industry, a lot of our problems can be solved and the benefits an be transferred to the farmers,” he added.He also said that despite similar levels of area under agriculture - nearly 14 crore hectares, China’s foodgrain production in 2012 stood at 57 crore tonne while India’s total production for 2011-12 stood at just 25 crore tonne.

Intensive food processing is need of the hour: Minister

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“Natural,” “clean label,” “green,” “eco-friendly” and “sustainability” are the new buzzwords in today’s food and beverage industry. Products and ingredients bearing these tags have created demand among consumers, and therefore have been significant purchase influencers. The markets for these natural and naturally derived products are growing at a fast rate, creating an immense profit potential for food and beverage manufacturers. The past two decades have witnessed consumers becoming more health conscious and resorting to preventive measures, rather than reactionary ones. Functional foods and beverages play a major role in this segment, promoting the concept of healthiness-on-the-go. These functional foods and beverages include health ingredients, which have proven to promote general health and well-being by preventing certain diseases. However, the industry also confronts certain challenges in coping with the demand of natural ingredients used in food and beverage applications, particularly

in terms of sustainability.The “health and wellness” mega trend drives the overall natural ingredients market. Increasing incidence of lifestyle-based disorders, such as cardiovascular diseases (CVDs), obesity, osteoporosis and diabetes, has propelled consumers to resort to natural alternatives. Moreover, the number of articles and newsletters circulated in media describing the ill-effects of consuming synthetic ingredients has further cautioned consumers. Consumers perceive natural ingredients as having a positive impact on general health, while synthetic ingredients have certain detrimental effects on health. As a result, food manufacturers have promptly

responded to the situation by completely replacing or partially replacing synthetic ingredients with their natural counterparts.Many synthetic ingredients used in the food and beverage industry have a natural alternative. Some of the prominently used natural ingredients in the food matrices include natural antioxidants and natural antimicrobials that help preserve the shelf life of food or act as functional ingredients offering health benefits. Other natural ingredients include vitamins, phytochemicals, carotenoids, proteins and probiotics that are intended to provide functional benefits. These ingredients cater to a wide variety of health conditions that range from bone and joint health, cancer reduction, cognitive health, weight management, cardiovascular health, immune health to gut health, as well as infant health.Another set of natural ingredients also exists that helps improve the sensory and textural properties of food and beverages. These natural food additives include natural colors and flavors that fall under

sensory food additives and natural emulsifiers, starch and gelling agents/hydrocolloids that are used as textural additives to enhance the textural properties of food and beverages. Certain ingredients such as natural antioxidants perform dual roles—acting as a functional ingredient that helps curb cardiovascular, immunity, and skin disorders, and also as a shelf life extension food additive protecting products like oils, fats and meat against rancidity by arresting oxidation.The total natural food ingredients market, including sensory and textural food additives and functional ingredients, is worth approximately $4 billion having grown at an encouraging rate of

6 to 7 percent in 2012. The high growth rates are accompanied by an augmented demand from health-conscious consumers across the globe. The natural food ingredients market has managed to remain relatively stable, in spite of the economic downturn and is expected to increase in the future.North America and Europe continue to be the mainstay markets for natural food ingredients. They represent approximately 60 percent of the global market. This situation has prevailed following sharp increases in obesity levels among in the populace of the United States and the United Kingdom. According to the Centers for Disease Control and Prevention (CDC), almost one-third of the U.S. population—about 35.9 percent—suffer from this condition. The costs involved in treating the disorder amounted to US$147 billion in 2008. Obesity, in turn, leads to an array of fatal diseases, such as diabetes, cardiovascular disorders, arthritis and high blood sugar levels. Increasing medical costs and the peril caused by these diseases have

raised anxiety among consumers to reduce fat, sugar and salt levels. As such, they desire to consume functional food that helps keep a check on these factors. This serves as a huge driver and creates a potential market for natural ingredients to be used in these foods.Maturing western markets have paved the way for emerging economies, such as India, China, Brazil, Russia, Mexico, United Arab Emirates (UAE), South Africa and Latin America, to establish a concrete platform for international and multinational participants to consider these promising markets. Increasing disposable income, relatively stable governments and rise in

health-conscious consumers are key factors that drive growth.Rapidly changing lifestyles have also changed the nature and type of food available to the public. The consumption of processed food and snacks has become inevitable among the working population. These markets have increased the usage of natural ingredients, such as flavors, colors, emulsifiers and hydrocolloids. The natural flavor industry, in particular, has performed exceedingly well among all the other categories and occupies a significant share of the natural ingredients market. The addition of new natural colors in beverages has created new avenues for innovations in the market. Standard natural textural additives such as lecithin are gradually replacing synthetic variants. In addition, natural antioxidants and antimicrobials have also been a lucrative segment in the natural food ingredients markets and have multifaceted properties that enable them to perform as both shelf-life extension food additives and functional ingredients. Naturally derived vitamin E, rosemary

extracts and green tea extracts are typical examples that have shown noticeable progress.Although these facts substantiate the potential behind the natural food ingredients market, ingredient manufacturers face certain intricate challenges throughout the supply chain. Natural ingredients are in limited supply. Raw material availability is down, and the surging demand for these ingredients is unable to meet the supply, thus creating a supply-demand imbalance. The dependence on allied industries has also caused an increase in demand, leading to an erratic increase in prices of these ingredients.A typical example would be the case of naturally derived

vitamin E, which is used for multiple benefits, such as shelf-life extension and as a functional ingredient. Its supply is dependent on non-genetically modified (GM) soy, which is also an important source for the production of biofuels, which is in great demand. Additionally, the fact that there is a limited availability of this raw material has resulted in the prices of natural vitamin E to increase at a rate close to 25 percent during the past two years and is further expected to grow in the near future. Manufacturers have started to follow the trend of blending different natural antioxidants to cut down the total cost; this practice decreases the premium associated with the product and therefore offers their customers an affordable price.Learn more about getting the GMOs out of the vitamin E market the INSIDER Vendor Brief, “Nutralliance Natural Non-GMO Vitamin E.” Another challenge for end users is to match the taste and other organoleptic properties of these natural ingredients with that of synthetic ingredients, since consumers are not ready to compromise on the aspect of taste. It is imperative that manufacturers spend a significant part of their revenue in research and development (R&D) to sort out this issue.At times, regulatory challenges create havoc, as they differ according to regions and sometimes even countries. Its impact on the growth of natural ingredients, however, is minimal.Though natural ingredients are gradually replacing or substituting synthetic ingredients, natural ingredients still have a long way to go to compete with synthetics. Currently, natural ingredients constitute only about 25 percent of the total ingredients market, in terms of revenue. Increasing marketing efforts is essential to create awareness among consumers as well as convey the benefits of natural ingredients and how these impact their lives. Innovations are critical in this space to differentiate the products against conventional products. A wallet-friendly, clean labeled, natural product with good taste and organoleptic properties would be the best success formula for manufacturers and others in the supply chain to capitalize the potential in this market.Ashwin Raj Ravinder is a food and agricultural research analyst at Frost & Sullivan. For more information on Frost & Sullivan’s chemicals, materials and food practice and research, please contact Jeannette Garcia, corporate communications, Frost & Sullivan, at [email protected] or at 210-477-8427.

Health and Wellness: A Mega Trend in the Natural Food Ingredients Market

By Ashwin Raj Ravinder

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How do you view the Indian food processing industry?The Indian economy is

growing at one of the fastest pace in global economy. Not only are the income levels rising but also the exposures to new & newer products, brands, techniques are being made available easily. The consumer is getting more aware, willing to buy and try newer products. The disposal income from the “DINK” group has also fuelled growth in demand of processed food.The government has been helpful in allowing the retail industry to blossom & prosper. Also, the Indian Government is focussing on increasing the levels of Primary & Secondary Processing to curb food wastage. This is only possible if more food is processed, packed & presented to markets. The role of MOFPI & Food Processing Industry is primary in this regards.All this has been a big catalyst in creating a new demand for processed & packed food across all segments from RTE, packed food, frozen foods, confectionary to QSR’s etc.Having been associated with the best names in the food processing industry such as theHaldiram, ITC, Unilever, Dabur, Master Foods, Parle, Britannia etc.; Fabcon has witnessed growth in demand on year on year basis. Do you see demand of Indian machines in the global market especially in West Asia, Africa, South Asia & South East Asian countries?I have been asked this question many a times. Yes, the demand for exports is also intensifying. The main reason behind this is that the BRICS & MENA markets are opening up now. They are developingand looking for high efficiency yet economic solutions for Process & Packaging Machines. Indian manufacturers are being looked upto & as they have delivered on main parameters of ethics, quality, support & engineering. Our machines don’t carry a “use & throw every year tag” and we are definitely among one of the most cost effective company. What we offer is the ideal package of quality and value for moneyFabcon hopes that more DTAA & Bilateral Agreements can be signed with various nations to curb import duties and also can be of big support if the Government can provide subsidies to exporters of machines to these nations to bring down cost of equipment for end buyer. Same practices are being followed in Europe and largely by China.Being an Indian machinery manufacturing company how do you deal with ever growing customer demand for latest and most high-tech machinery? Do you also have some foreign tie-ups?The customer has the right to be demanding, he is the king. In fact,

it is the customer who sometimes creates awareness for a requirement of solution to be delivered to them. Fabcon has been delivering on these parameters for over 30 years andthis is where we stand victorious by understanding the customer requirements & delivering them in most suited manner. More than 75% of Equipment / Solutions are customized.Fabcon has forged JV (Joint Venture) ties with some of the best names in Food Processing Industry. We have been able to indentify niche areas which needed to be catered in a very special manner. In order to deliver the best results, Fabcon has signed MOU’s / JV for manufacturing / supply in Indian & Middle East markets so asto offer the European / Japanese technology at close to Indian prices. This is a very difficult yet important task as India still remains a very price conscious market.

Our main JV / MOU partners are:1) SPIROFLOW LTD; UK: POWDER HANDLING SYSTEMS WITH EXPERTISE IN FOOD INDUSTRY

2) LALESSE EXTRUSION BV; THE NETHERLANDS: KNOWN FOR THEIR TECHNOLOGY & YEARS OF EXPERIENCE IN DIRECT EXTRUSION FOR BAKED SNACKS.3) DREMAX; JAPAN: FOR CREATING A FOOD CULTURE BY OFFERING STATE OF ART VEGETABLES & FRUIT CUTTING SYSTEMS WITH FOCUS ON FROZEN FOOD, RESTAURANTS, QSR’S, BULK COOKING & RELATED BUSINESS

4) FIREX; ITALY: WHEN IT COMES TO COOKING, ITALIANS KNOW THEIR FOOD BEST. FIREX OFFERS BEST IN CLASS GRAVY, CURRY, SAUCE, RICE, MEAT COOKING SYSTEMS OPERATED BY STEAM, ELECTRICITY OF GAS

5) MANY OTHERS FOR PROCESS & PACKAGING LINES

In the past years we have literally seen tailor-made solutions provided by your company to your customers, how important is this for companies like you who always think out of the box to serve their clients?Going back to our discussion above, more than 75% of our business is from delivering customized solutions in food processing industry. Every food manufacturer has their own norms, plant layout, recipes, systemsand need for equipments, systems & engineering to be custom designed.We strived on customization as it gives us a feeling of a new challenge everytime& keeps us on our toes to design & develop new systems.

A few examples are: 1) Z Shaped Distribution System for Packaging lines2) Multi Purpose Fryers3) Combination of Fry & Bake lines using optimum mix of equipment in Process & Packaging4) Vegetable sizing equipment that gives various cuts & sizes without changing blades5) Multi Product Flavoring Systems for mix of baked & Fried products & having special design for proper coatings6) Etc It’s important that we live upto this reputation so as to stay ahead in the market..

What services to you provide to the snack food industry? Kindly name some leading companies who are you buyers?We are known as a “single window solution provider”when it comes to Food & Agro based processing & Packaging. We have with us a basket of solutions that serves the various segments of FMCG industry in Food Segment. We have played an important role in:1) RTE-Snacks. Our regular customers since early 1990 being India’s biggest Processed Food player M/S HALDIRAMS. Under the guidance of H a l d i r a m Umbrella, we have been able to identify key areas of focus that need automation & development. For example, we have recently automated the pulses to flour generation and d i s t r i b u t i o n application for them. Out other customers in this segment are well known brands like Bikano, Balaji Wafers, Yellow Diamond, G a r d e n N a m k e e n , Aggarwalsand many regional players2) QSR / RTE / PROCSSED P A C K E D FOOD: Again H a l d i r a m s , Bikano, GITS, Yum, Kohinoor, D a a w a t , D a r s h a n -Meatzzaetc3 ) R E A D Y TO COOK S E G M E N T : G I T S , B A M B I N O , Midas Foods,

UnicoDryblends, Amazon, BlueBird etc4) Confectionary: Britannia, Perfetti Van Melle, Cadbury-Kraft, Master Foods, Parle5) Fruits: Jain Irrigation etc.We also work with many OEM’s in Process & Packaging industry who buy their regular requirements from us.

What are the top most important features food processing industry in general and snack food industry particular look in the type of machinery you sell? What is your strength?This is a very interesting question. Any investment that is being made now is being carefully studied and monitored for “ROI”. The ROI is not just in direct returns on sales, but also in terms of fuel savings, minimal breakdowns, least audit issues, minimal floor area occupied, equipment which is easy to clean and reinstall for faster product changeovers during flavor & recipe change & overall manpower optimization. The other most important aspect is the drive to adopt high capacity & faster processing equipment.

More than 75% of our business is from delivering customized solutions

A “SMART” system is one which is capable of all and above. FABCON prides itself in making “SMART” systems as we want our customers to delight with the systems they order on us.The focus is to get the job done right the first time. This is backed with superior Sales force which understands what is needed to be done before getting the job & followed by efficient Services & after Sales team.Our Strength is being able to deliver the total package. We also encourage the “try before you buy”policy where we invite customers to take trials at our end or in their factory with our test / demo equipment.Fabcon has two Production Units of 20000 square feet each and it is expanding by installing latest machinery & developing in-houseand new teams to back the expansion.

At FABCON, we are engaged in continuously helping the Agro & Food Processing sector in updating their working methods & improving the ability to garner a higher yield for their input. We have been offering various solutions for the industry to add value to the primary product (grains or fruits) by processing them into Snacks, Cooked Food, Confectionary, etc. Another role has been to offer state of art expertise in Conveying & Packing Technology to enable the manufacturers to pack, store & distribute their products in the most efficient manner by reducing wastages, manpower & enhancing the shelf-life. Says “Nishant Bansal, CEO & Managing Director, Fabcon, Noida”, in an interview to your monthly.

Interview


Refrigerated Truck market in India is much spoken about in the recent times.

With the Indian cold chain market valued at Rs. 15,000 Crores, at 20 to 25% growth rate, the number of Reefers estimated in India is only about 30,000 units.

Many a times, we get to read that India stands number 2 in the global milk production, no. 5 in egg output, no.6 in fish output etc. However, India is not able to convert all these abundant resources into considerable national revenue? The reason is very obvious. Due to the inadequate Cold Chain Infrastructure it is estimated that about 30 to 40% of the output

is expelled as wastage. In other words, products worth Rs. 35,000 cores are significantly wasted due to lack of proper Cold Storage handling and refrigerated logistics. Did you know that India is the 2nd largest producer of fruits and vegetables in the world (150 Million Tons) with cold storage facility available only for 10% of the produce?

Perhaps the wastage percentage appears to be less owing to the fact that most of the fresh produce is consumed within a 200kms radius from source of production. Thanks to our overwhelming population!Factors such as Insufficient Cold Storage capacity, lack of cold storage proximity to farms, poor transport infrastructure amount to this considerable wastage. And what is the result of it all? Price instability, low

An Effective REFRIGERATED TRUCK solution for Ice Creams & Frozen Foods Distributionfarmer remuneration and rural impoverishment.

With a large domestic consumption capacity, rising export demand, large pool of labour, increasing demand for processed food, strong government support via subsidy, training and NH development, the Cold Chain Industry in India is still sustaining some growth. Well then, what is making this growth difficult?

Insufficient skilled labour, lack of refrigerated transportation and Storage facility, uneven distribution of cold chain, lack of uninterrupted power supply, single commodity cold storages and many more.

Talking about food processing, India stands at 2% processing levels in fruits & vegetables while USA remains at 65% and China 23%. While Indian poultry processing is at 6%, the developed countries stand at 70%. Dairy, another significant industry has a food processing level of 35% while the developed countries are at 75%. Such low food processing levels that are significantly lower than global standards not only lead to low value addition but also increases wastage.

With the rising demand for processed food (temperature sensitive) for local consumption and exports the level of processing is set for a tremendous growth in the years to come. And the consequence of this is rise in demand for Cold Storages and Reefer vehicles. Well, the so called “reefer market size” is still spoken about at 30,000 Reefers serving the ENTIRE Indian perishable commodities. It is clearly evident that there is a huge gap in the deployment of Refrigerated Vehicles in India. Let us take a look at the Ice cream distribution in India.

Firstly, awareness of the benefits of refrigerated transportation is very low in the Indian market. Secondly the Indian food quality

is not governed by any stringent rules and food safety regulations. All that we see of Cold Chain logistics in India (apart from the refrigerated containers and heavy reefers), are perishables such as Ice creams are being transported in shipper boxes, small freezers, or sandwiched between ice cubes or dry ice etc.

Despite the extensive financial and economic growth that is articulated about India, cold chain distribution is still very immature using age old technique and methodologies. And the worst part of it is, the end user / consumer seldom realizes that the Ice cream that he is purchasing from a very fancy display freezer may not have sustained quality anymore due to its ineffective transportation. All that the Indian consumer assumes is that – the ice cream is of a reputed brand and hence believes that the manufacture must have taken complete efforts in protecting its quality from source of manufacture to retailer point.

How many of us are aware that there are more than 5000 Ice cream distributors in India and the dedicated reefer vehicles for Ice cream segment is estimated less than a thousand. So how are the rest of distributors transporting their ice cream and how good is the quality of Ice cream that we consume? Now this is a REAL question to think about. Bear in mind that this figure is excluding the local, small scale ice cream manufacturers of the large unorganized sector.

National and Multinational brands in India spend huge amount of money in order to bring variety in terms of flavours and taste and nutrition in Ice cream but it is really unfortunate that sometimes it is overlooked as to how their preciously developed product is distributed to its end user.

We often read that some of the big food brands importing Reefers from Europe or South Asia in an attempt to offer world class refrigerated distribution in India. While it is all very aspiring to notice such efforts, many a times we do not realize how effective these imported Reefers are when it comes to “the Indian conditions”. By conditions we mean Ambient and operating conditions.

Why is refrigerated distribution different in India? Here, we live with a very fragmented, unorganized retail system serving one of the world’s largest consumer markets. With less than 4 drop off points (with less than 20 sec door opening) for refrigerated secondary distribution in the Developed parts of the World, here in India we observe a maximum of 20 drop-off points with upto

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India’s Ist Fortnightly Newspaper For Beverages, Food & Allied Industries

Milk and the dairy industry has a special place in the Indian house hold, since time unknown people have taken milk to be a fortifying and healthy drink. It also takes up to be a sacred

drink for many here. Well apart from all this sentiment, statistically India is considered to be among the top most producers of milk the whole world.Kurien’s white revolution brought India in the global front. Now the latest I have seen is a revolution of dairy development sweeping Goa. More and more farmers are taking to milk farming with gusto and as a result of it milk production is spiking. According to an estimate milk production will have touched the 68 thousand litres mark by the close of the fiscal year. Sources say the state intervention is mainly fueling growth in the dairy sector. The govt. has lately provided a raft of facilities and incentives to the farmers. And several schemes including Kamdhenu are aimed at investing dairy farming with profitability. Not to forget the political state of India - Uttar Pradesh - Where the dairy industry is set to get a boost following the inclusion of the state in the National Dairy Plan (NDP) of the National Dairy Development Board (NDDB). Incidentally, the Gujarat Cooperative Milk Marketing Federation (GCMMF), producers of the famed Amul brand of milk and milk products, has also showed keen interest in the dairy sector of Uttar Pradesh and has already acquired land near Kanpur for setting up a milk processing plant of double capacity in Kanpur. It will be the largest milk processing plant in the state and will market products of Amul brand.The UP government-owned Pradeshik Cooperative Development Dairy Federation Limited (PCDDF), which processes milk and markets its products with the brand name Parag, is also plans to set up a dairy plant of 5 lakh liter daily capacity near Lucknow.Mysore will soon have a hi-tech and massive dairy on the lines of Mega Dairy in Bangalore. With this, the proposed dairy will be able handle eight lakh litres of milk daily, which can be expanded up to 10 lakh litres. It is going to be a fully computerized plant with hi-tech features. The officials of Mysore Milk Union Ltd have proposed the mega dairy project, predicting massive growth of the industry in the near future. According to them, milk production may increase by 2020, and that the new dairy would help them meet challenges. Of late, Mysore dairy has been facing competition from private players. There is competition from private players who have adopted aggressive marketing strategies. ITC, - the jack of all - is set to foray into dairy business with the launch of a range of dairy products over the next 14 months. The move is part of an integrated animal husbandry program, the firm’s corporate social responsibility initiative.ITC plans to launch shelf-stable dairy products such as milk powder, and long-life packaged milk and fortified milk.The FMCG major had already begun construction of a milk processing plant in Munger district of Bihar state in late December 2012 with an investment of INR1.5bn ($27.38m). It will have a capacity to process 200,000l per day and can produce up to 20 tons of milk powder, 20 tons of milk in pouches and 10 tons of ghee. Mother Dairy has entered Chennai with the launch of its entire range of ice creams.One of country’s leading ice cream brands, Mother Dairy, will offer its entire portfolio of ice creams in ‘Impulse’ and take-home range including the popular premium ‘Classics’ range at Chennai.While, Cadbury India, a part of Mondelēz International, has launched a new TVC for the all-new softer, smoother and silkier Cadbury Dairy Milk Silk. Revolving around the theme of ‘indulgence’, the film effectively captures the immersive joy of consuming a bar of Cadbury Dairy Milk Silk.. The renovation of Silk is in line towards providing an even more superior chocolate eating experience in India. The dairy industry of India has developed as par excellence and hence NDP is eventually planning to cover 13 of the 14 milk-producing states and under this plan; the Central government will introduce scientific measures in all the states to increase cattle’s milk production. It is learnt that in the first phase, 49 proposals from the chosen eight states have been approved by the Project Steering Committee. The scheme includes activities such as progeny testing, pedigree selection, strengthening of semen stations, balanced ration programme and fodder development proposals.Milk cooperatives in these states will be provided support in providing rural milk producers with greater access to the organized milk processing sector. The steering committee has approved Rs 130 crores for this plan for the financial year 2012-13.In the later phase, Andhra Pradesh, Rajasthan, Bihar and West Bengal are also likely to be included in the plan. The livestock sector has been showing healthy growth of more than 4% per annum in recent years and has the potential to grow even faster with new initiatives being taken in the 12th plan.This sector is important not only as the producer of highly nutritious food products, but also for sustenance of poor farmers and overall prosperity of the farming community. Efforts are also under way for finalizing the long-pending draft National Livestock Policy that will guide sustainable growth of the entire livestock sector in the country.The National Dairy Plan is a mega programme for fast growth of dairy sector. Its first phase is to be implemented over the next six years.

Cold Chain


An Effective REFRIGERATED TRUCK solution for Ice Creams & Frozen Foods Distribution160seconds of door opening. More drop-off points meaning more door openings meaning more heat load to be handled by these Reefers.

While in developed countries’ retail distribution items are sorted before loading on to the reefer, in India it is often sorting of items in the Reefer at the retail drop-off point. This is mainly because of the unpredictable and unstable order quantity of Retailers apart from lack of process driven loading and unloading of truck loads for milk runs. It is critical to note that sorting at drop of points means more ambient temperature entry into the reefer thereby rising the container temperature directly affecting the product quality and shelf life.With all this aside, let us not forget that the imported Reefers are designed as per the low ambient of the country of origin. Whereas in parts of India, the ambient shoots upto 50 deg C.

Thus the performance of these imported reefers would be crippled in Indian ambient and operating conditions. They are not designed to suit ‘the Indian way of distribution’. Hence, even with governments duty free import incentive on Reefers, the quality

of refrigerated distribution is not getting any better. Considering all this, it is evident that in order to be effective in India, Reefers need to be designed with better refrigeration capacity. Without this, the imported Reefers miserably fail in India.

Bharat Refrigerations (P) Ltd - a company with more than 24 years of advanced refrigeration research experience and pioneer-manufacturer of refrigeration equipment, has developed a world-class reefer truck technology -

TRANSFREEZ - especially for last-mile, multi-point frozen food distribution. Transfreez, offers Cold Plate Refrigerated Trucks at unmatched cost to Ice cream and frozen food distributors. The technology behind TransFreez is born out of more than 900 hours

of intensive research and field tests specifically revolving around the Indian Ice cream / frozen food distribution. Transfreez reefers operate at 60% lesser cost than traditional blower type reefers. As a result of good research and

By : Divya Amrith, VP – Marketing & Strategy, Transfreez - Mobile Refrigeration, Email:[email protected]

intensive real world testing in India these trucks are specifically designed to suit Indian operational and ambient conditions, bearing in mind that the most important mission of Reefers is to protect the products while sustaining its quality and shelf life.

In addition to cutting down operation and life-time cost by 60%, Transfreez, also offers a dual-purpose detachable Reefer- more popularly known among our customers as “Coldroom Reefer”. Specifically designed for dual purpose, Storage + Transport, these detachable reefers can be turned into COLDROOMS whenever needed.

Example: For seasonal business such as Ice cream, distributors often think twice to invest in a reefer fleet and worry about its under-utilization during off season and its cost there forth. In such a scenario, this independently chargeable Refrigerated Container can be easily removed from the vehicle and can be used as a Mini-Cold Room during off season, thereby saving the distributor of vehicle idling cost. The LCV can then be used as any other pick-up truck for other purpose, or even better, if the distributor

can lease/hire the vehicle during peak ice cream season, he can save significant cost on vehicle, maintenance and driver during off season.

This patent-protected and proven technology has gained a lot of popularity amongst many Ice cream and frozen food distributors in the recent times. This fuel-free Cold Plate technology enables complete product protection while distribution compared to blower system reefers which thrive on the continuous operation of the Vehicle engine to sustain cooling.

How to operate Transfreez Reefers?

Well, all you have to do is plug it to charge at your locally available electric point from 8 to 10 hours and enjoy fuel-free refrigerated distribution during the day with assured temperature maintenance. Now there is a great reason for Ice cream & frozen food distributors to stop worrying about the safety and quality of products during distribution and enjoy considerable cost savings and business growth.

Cold Chain


Mother Dairy Fruit and Vegetable Private Limited, a wholly

owned subsidiary of the National Dairy Development Board (NDDB) having its headquarters in Gujarat’s Anand district entered Chennai with the launch of its entire range of ice creams.

One of country’s leading ice cream brands, Mother Dairy, will offer its entire portfolio of ice creams in ‘Impulse’ and take-home range including the popular premium ‘Classics’ range at Chennai. “Having won the heart of millions of consumers across the country, Mother Dairy’s ice creams are all set to delight the taste buds of ice cream lovers of Chennai. We are sure that people of Chennai will enjoy the goodness of ice-creams in its purest form as offered by

Mother Dairy launches ice creams in Chennai

us,” Subhashis Basu, business head, dairy products division of Mother Dairy said on venturing into Chennai in a press release.Mother Dairy ice cream is made out of milk fat as opposed to frozen desserts, the release said, adding that consumers in Chennai can now pamper themselves with

the exotic and the most sought after range of premium tubs.Mother Dairy was commissioned under ‘Operation Flood’ project of NDDB on December 4, 1974. It claims to be market leader in the branded milk segment in Delhi with sales close to 30 lakh litres per day in the city. It has also entered categories such as probiotics with the launch of Mother Dairy ‘b-Activ’ probiotic curd and lassi, ‘b-Activ’ plus curd and ‘nutrifit’ probiotic

Cadbury India, a part of Mondelēz International, has launched a new TVC

for the all-new softer, smoother and silkier Cadbury Dairy Milk Silk. Revolving around the theme of ‘indulgence’, the film effec-tively captures the immersive joy of consuming a bar of Cadbury Dairy Milk Silk. This is show-cased through three young people who are shown taking hearty bites of the new silkier chocolate and also scooping it with their fingers, enjoying the softer, smoother and creamier sensation. The TVC has been conceptualised by Ogilvy India for the relaunch of the chocolate.Speaking about the campaign, Chandramouli Venkatesan Direc-tor, India Snacking and Asia

Cadbury Dairy Milk Silk has got silkierPacific and Developing Mar-kets – Chocolate Lead, Cadbury India, said, “Silk has been a great success story for us ever since its launch. The renovation of Silk is in line with our efforts towards

providing an even more superior chocolate eating experience in India. The new Silk TVC show-cases characters being completely immersed in the experience of consuming the new Cadbury Dairy Milk Silk. The product has

been improved to deliver greater softness and creaminess, while retaining the signature Silk taste, to make it the best chocolate in India.”He further said, “This relaunch is supported with heavy marketing investments including outdoor, digital, on-ground engagement and differentiated POB execu-tion.”Manoj Shetty, Creative Director, Ogilvy India, who developed the TVC, said, “The new Cadbury Dairy Milk Silk TVC is created to cater to the fast evolving con-sumer tastes and trends and their compulsive need to indulge and pamper themselves. The charac-ters in the TVC aptly depict that the new Cadbury Silk is softer, silkier and smoother.”

ITC is set to foray into dairy business with the launch of a range of dairy products over

the next 14 months. The move is part of an integrated animal hus-bandry program, the firm’s corpo-rate social responsibil-ity initiative.ITC plans to launch shelf-stable dairy products such as milk powder, long-life packaged milk and for-tified milk.The FMCG major had already begun con-struction of a milk pro-cessing plant in Munger district of Bihar state in late December 2012 with an investment of INR1.5bn ($27.38m).It will have a capacity to process 200,000l per day and can produce up to 20 tons of milk pow-der, 20 tons of milk in pouches and 10 tons of ghee.ITC foods di-vision divisional CEO Chitranjar Dar was quoted as saying that the company is also open to third party al-ternatives.“We realised it is just not good enough to

ITC to foray into Indian dairy sector

only manufacture. We have to find a profitable outlet for it and that is how we planned to get into dairy,” Dar added.“So, from a strategic point of view,

Mysore will soon have a hi-tech and massive dairy on the lines of

Mega Dairy in Bangalore. With this, the proposed dairy will be able handle eight lakh litres of milk daily, which can be expanded up to 10 lakh litres. It is going to be a fully computerized plant with hi-tech features. Bangalore’s 10 lakh litre-capacity mega dairy was set up a decade ago. The officials of Mysore Milk Union Ltd have proposed the mega dairy project, predicting massive growth of the industry in the near future. According to them, milk production may increase by 2020, and that the new dairy would help them meet challenges. Preliminary discussion on the setting up of the dairy is over. Next week, there is will a presentation on the proposed project in Bangalore, which will be attended by NABARD officials.Mysore and Chamarajanagar Milk Union MD Suresh Babu told that their recent procurement analysis has revealed that there was an increase milk production in November last, during which time the dairy handled about 6.25 lakh litres daily. On an average, the dairy receives nearly 4.7 lakh litres of milk every day, and sells 2.4 lakh litres in sachets and 40,000 litres of curds. As many as

Hi-tech milk dairy proposed for Mysore

1,309 milk co-operative societies in Mysore and Chamarajangar districts have been supplying milk to the dairy.Babu said milk procurement is expected to rise with many people are taking up dairy farming, “because this is the only business which is immune to drought or recession”.“Studying its growth in the near future, we have proposed to set up a mega dairy in Mysore. It would come up on a 34-acre land in Alanahalli at an estimated cost of Rs 116 crore. We have sought assistance from NABARD (50%) and state government (40%), and the milk union will bear 10% of its cost,” he added.

COMPETITION FROM PVT PLAYERSOf late, Mysore dairy has been facing competition from private players. Babu said that there is competition from private players who have adopted aggressive marketing strategies. “But we are educating consumers about the quality of our products, and health hazards of milk supplied by private players, who are paying high commission to sellers. As ours is a government set-up, we can’t pay more than 4% of MRP as commission,” he said.

A revolution in dairy devel-opment is sweeping Goa-a tiny mini state of India.

More and more farmers are taking to milk farming with gusto and as a result of it milk production is spiking.According to an estimate milk pro-duction will have touched the 68 thousand litres mark by the close of the fiscal year.

Goa: Govt initiatives fuelling dairy revolution

Sources say the state intervention is mainly fueling growth in the dairy sector. The govt. has lately provided a raft of facilities and in-centives to the farmers, claim the sources.Several schemes including Kamd-henu are aimed at investing dairy farming with profitability, official sources say.Goa earlier experienced a wide

gap between demand and supply in milk production and this was blamed on the poor performance of the cooperatives. Goa remained dependent on sources outside of the state, noted analysts.The pace of the current transfor-mation experts say is also being quickened by govt providing qual-ity fodder and buying of addition-al livestock.

we will enter some parts of dairy in the next 14 months.” ITC also plans to set up cold chains and cool chains simultaneously to have a presence in the entire value chain.

Dairy News


Country's first indigenous probiotic culture isolated by scientists of Anand

Agricultural University (AAU) will be used by a Kerala-based food company to introduce probiotic dairy products.AAU has signed a MoU for commercialization of the probiotic lactobacillus helveticus (strain number MTCC 5463), with Thiruvananthpuram-based Dr Baboo's Food Science and Biotechnology Private Limited. It is the first of its kind MoU between a university and a food company wherein the food company will be utilizing the latest and need based research carried out by university at commercial level.Probiotics are bacteria that help maintain the natural balance of micro organisms in the intestines

Anand Agricultural University develops India’s first indigenous probiotic culture

by inhibiting the growth of harmful bacteria. They are also available as dietary supplements and are used by many to prevent diarrhoea, gas and cramping caused by antibiotics which kill beneficial bacteria along with the harmful types.Most probiotic range of dairy products available at present in the market like the probiotic lassi and curd sold by dairy giant Amul use imported probiotic cultures."After getting it patented in 2010, we had deposited the culture at the Indian patent repository at the Institute of Microbial Technology (IMT) at Chandigarh while the DNA mapping was submitted to the gene bank at the National Centre for Biotechnology Information, United States. Now, we have given the exclusive right for its commercialization to the food company," said professor J D

Prajapati of Department of Dairy Microbiology at AAU's SMC College of Dairy Science.Interestingly, Dr Baboo Nair, who is the managing director of the Kerala firm, is also an alumnus of AAU.After graduating from the erstwhile Gujarat Agricultural University in 1961, Nair, as professor emeritus at Lund University, Sweden, has worked with AAU under an exchange programme."Currently, probiotic cultures are largely imported from Denmark by the dairy and other food industry of the country to manufacture probiotic products. The indigenous culture developed by us can be used for manufacturing probiotic fermented milk products such as lassi, curd, buttermilk among others," said Prajapati.

Of all the places you’d expect frozen yoghurt to be popular, South

Korea would be unlikely to rate a mention. Yet the country is one of the biggest markets for frozen yoghurt, according to Frosty Boy CEO Dirk Pretorius.The trend is also taking off around the globe. In the United Kingdom alone, sales of frozen yoghurt have soared 50%, up from £4 million to £6 million.“The frozen yoghurt concept is currently spilling over from the USA into Europe and Asia Pacific,” Pretorius said. “The reason why it is so popular is because it is a healthy alternative to normal ice-cream and usually the concept allows consumers to be creative and design their own product using the frozen yoghurt base. “We are seeing some really unique uses of frozen yoghurt in different stores across Australia and throughout the world. We have clients who use them in smoothies and even protein shakes. Others are setting up self-serve frozen yoghurt outlets where you pay by weight.“Fruit and vegetable stores are seeing frozen yoghurt as an add-

Frozen yoghurt a hot trend in Korea

on to their current operations providing them with an additional revenue-making opportunity. Customers are able to purchase ready-to-eat fruit salads and then add frozen yoghurt in-store for example. Cafes are changing their offering to reflect healthier breakfast options and many are introducing frozen yoghurt as part of their menu. “The opportunities are endless and innovation is the key driver here. In the last three years alone our range went from eight to over 25 frozen yoghurt blends distributed to both Australian and international markets,” Pretorius said.Frosty Boy has its origins in the soft serve ice-cream market, but started production of YoFrost frozen yoghurt in 1985. The product offering has changed substantially from the first product to Frosty Boy’s current product offering, mainly due to advancements in food technology. Prebiotics and probiotic fibres are now being added to some products in the Frosty Boy range. Frozen yoghurt stores are able to create their own flavours, allowing for signature ranges exclusive to each store. Chu Minh Tofu Company

loses food-processing license, fined $17,800The Washington State De-

partment of Agriculture (WSDA) has revoked the

food-processing license of Chu Minh Corp., which produces tofu and other soy products, after sev-eral inspections found on-going sanitation problems with the Se-attle business.In addition to revoking the com-

pany’s license to process food, WSDA also assessed a civil pen-alty of $17,800 against the compa-ny and required all products at the

facility to be destroyed. Notices about the license revocation are being sent to all retail outlets and restaurants that have purchased or carry Chu Minh products.As a result of these actions, the company cannot process any food at this location. Chu Minh has 10 days to appeal and request agency reconsideration of the order, but it

cannot operate as a food process-ing operation during that appeal period.This enforcement action follows

several visits to Chu Minh where WSDA inspectors consistently found problems with unsanitary conditions, poor sanitation practic-es by employees, pest infestations and a general failure to protect food products from contamination.During the most recent inspec-tion on March 6, inspectors noted many of the same problems ob-served during earlier inspections.WSDA’s Food Safety and Con-sumer Services Division typically tries to work with businesses to correct problems when violations of the state food production and handling requirements are discov-ered. When these education efforts fail to improve conditions, WSDA has the authority to suspend licens-es or assess civil penalties.In this case, WSDA had twice is-sued orders to suspend Chu Minh Corps.’ processing license. Both times, the company signed settle-ment agreements in which they promised to meet food-processing requirements. The most recent agreement was in October 2012.However, the continued violations of food processing standards and the failure to fully pay earlier fines associated with previous violations led to the decision to revoke Chu Minh’s food processing license.

New Zealand-based Fonterra and Dutch company A-ware Food Group have been given the green light to develop a new cheese and dairy ingredients plant in Heerenveen in the Netherlands.

Construction of both plants is scheduled to be completed in late 2014.Under the companies’ agreement, a greenfield site will be developed where A-ware will operate a cheese plant and Fonterra will operate a dairy ingredients plant alongside it. Cheese will be produced for A-ware’s European customers and the whey and lactose will be processed into premium nutrition dairy ingredients for Fonterra’s global customer base. According to Fonterra CEO Theo Spierings, the investment fits well with the strategic priorities of both companies.“Fonterra has substantial intellectual property in the manufacture of func-tional whey protein ingredients and has been looking for some time for a source of high-quality whey to enable it to commercialise these innova-tions for customers around the world.”

Tetra Pak has entered into an agreement with Foodbank to supply long life milk to people in need.Foodbank acts as a pantry to the charities and community groups

who feed the hungry. Tetra Pak has made a donation to Foodbank, along with Murray Goulburn, a number of other partners and the Australian Government. “We want welfare agencies to be able to rely on us for all the key essentials they need to provide balanced and nutritious meals to people in need,” said John Webster, CEO of Foodbank Australia. “Milk is consistently at the top of their shopping list.”The long life milk program was officially launched at Foodbank’s Parramatta Mission on 25 February 2013 by the Federal Minister for Community Services, Julie Collins. Since 2011, the Australian dairy industry united to provide Foodbank with one million litres of chilled milk annually. Tetra Pak’s commitment allows milk to be included in emergency food hampers and distributed to charities without the need for refrigeration.

Fonterra and A-ware go Dutch

Tetra Pak to supply long life milk to Foodbank

Dairy News


Recycling rate continues to rise

The Australian Packaging Covenant (APC) has announced that the overall

recycling rate for post-consumer packaging in Australia is 63.8% for 2012. Collaborative product

stewardship actions have led to this considerable improvement in the recycling rate from the 39% baseline established in 2003.The establishment of the Packaging Covenant itself is said to have had a direct contribution to the increased national recycling rate. APC-funded projects have accounted for up to 32.4% of the overall increase in recycling tonnes from 2005-2012. APC CEO Stan Moore said, “We are pleased to see the recycling rate continue to increase overall despite the difficult trading conditions. The Australian Packaging Covenant has a number of key projects in the pipeline and would expect these to start contributing to future increases.” There have been increases in recycling tonnes for all but one material type. The recycling rate for paperboard packaging has increased to a new record level of 76.8%, which is a 1.5% increase on last year and up by 5% since the stronger market prior to the global financial crisis. The plastic

packaging recycling rate is now a world-leading figure at 41.5%. Consumption of plastic packaging has decreased by 2.3% over the previous year, reflecting factors such as the implementation of sustainable design considerations, eg, light-weighting. Plastic packaging recycling has increased by 7.8% over the same period, reflecting increased efforts to recover plastic packaging.Consumption of aluminium cans decreased by 7.5%, as did total recovery at 2.7%, resulting in an improved recovery rate of 67.3%. There has been a rise in the imports of beverage containers by 3.7% over 2011-12, though total imports remain a relatively small proportion compared to domestic production. Collected separately, recycling tonnages of aerosol cans have remained constant with a decrease in consumption, lifting the total aerosol recycling rate to 49.3%. As aerosols are not included within the recovery rate methodology, this has not been reflected in the overall 2012 recycling rate.A decline in consumption for steel cans and an increase in the total recycled increased the recovery

rate by 4.7% to 38.9%. While the demand for steel packaging from the food sector has been relatively stable, it is believed that adverse weather conditions may have been a factor in decreased consumption as there has been less steel required for the packaging of local produce. There has been a decrease in the glass recycling rate by approximately 2% over the past 12 months. Behind these figures has been a significant structural change in recovery with one facility closure and a new facility commissioned in NSW, in addition to an increased consumption of imported beverage containers.The APC will continue to focus on the issues, barriers and opportunities of packaging recovery to continue to drive the recycling rate upward in the future. All parties in the packaging supply chain and all levels of government remain focused on the achievement of an overall recycling rate of 70% by 2015. The APC is an agreement between companies in the supply chain and all levels of government to reduce the environmental impacts of consumer packaging by encouraging improvements in packaging design, higher recycling rates and better stewardship of packaging.

Recycling rate Paper fibre Glass Plastic Steel cans Aluminium cans Overall2012 rates 76.8% 47.3% 41.5% 38.9% 67.3% 63.8%2003 baseline 49% 26% 20% 36% 63% 39%

We are of great pride and privilege to support Kenya Rural Agri Food Processing Project.

Kenya Rural Agri Food Processing project aims to uplift the lives of less fortunate people in Kenya specially those who are in rural areas where food and safe drinking water scarce are being experienced.

Mr. Jan Willem Van Es, Managing Director of Saham Star General Trading LLC, Dubai and Saham East Africa Ltd, Kenya stated that: “We are looking for Social Investors who are willing to participate in the rehabilitation of two villages in Kenya, one coffee/dairy farmers village in the South at the foot of Mount Kilimanjaro, the other in the west, close to Lake Victoria. We have identified waste-to-revenue opportunities for rural food processing, which are supplied on a lease-to-own base. For each 10 Euro we change the life of 1 person - we will start phase one once we have the accumulated funds to involve 50,000 villagers. Investors with contributions over 1,000 Euro are repaid in 60 monthly annuities, including reasonable interest. The higher the contribution the more interest we are willing to allocate.”

He continues: “We have already started the reforestation project in Seme, Nyanza, Western Kenya with the propagation of the first few Moringa trees, prior to turn corner of the shamba into a nursery. The seedlings will be used for the reforestation project along the 26km long river and many of its feeding sources, replacing useless bushes and wild vegetation, occupying good land without any value for the inhabitants.”

He added: “The most priority project is the rehabilitation of Awach River. This river is running from Maseno Hills towards Lake Victoria over a 26km stretch. Despite the fact that there is virtually no industrial activity in this rural area of Western Kenya, the water is heavily polluted because of human and animal waste. For not more than Euro 2,50 per month per couple, we can process and supply every day 25 liter healthy drinking water, as per World Health Organization, European and USA Standards.

Saham Global supports Kenya Rural Agri Food Processing project

The local population, represented by the Awach River Water Resources User Association, has committed themselves to pay for the water once the equipment is installed. They will form a cooperative that will jointly operate the water processing plant and share responsibility for all operational expenses and monthly payment of the lease.”

Mr. Jan Willem Van Es, Managing Director of Saham Global team ended the statement: “Saham would be donating 10% of its annual 2013 profit in support with this cause. We welcome anyone who are interested to donate, even how little or big amount. Your donations will also be used to mobilize the nursery and seedling propagation, a good source of work for the local people and a next step towards a future in prosperity.”

Saham is a Dubai-based environmentally dedicated group, part of the Belselah Group of Companies, with branches in The Netherlands, Kenya and before year end in Saudi Arabia. Saham is dedicated to make a change the Green Way and educates various audiences whilst offering a variety of 40+ bio-active products combined with an unrivaled expertise on surface cleaning, sanitizing, waste treatment, leisure turf, public green, agriculture and horticulture.

Foreign News


Packaging solutions specialist tna has announced the opening of a European

manufacturing hub in Birmingham in the UK. The development at one of the company’s existing sites further expands tna’s global manufacturing facilities and provides a logistical base for its sales, technical service and project management capabilities in Europe.The new hub creates a strategic site closer to tna’s European customers, reducing lead times and further enhancing the company’s ability to provide quality service. The 4645 m2 facility represents a significant investment in the European market, and product output is expected to reach 30% of all tna’s capital equipment from around the world. Providing employment for about 65 people,

Birmingham manufacturing hub provides European

base for tnathe site will create new jobs in the area, both in the manufacturing facility and the offices. Annual cash injection in the region is set to reach £15 million per annum and is projected to double in the next three to five years.“We are delighted to be opening our new European Manufacturing Hub in Birmingham,” said Tim Moulsdale, General Manager - Europe for tna. “Through our new production facility in Europe, we can now manufacture a large proportion of our revolutionary products in addition to offering enhanced technical support, sales and related services to our customers here and across the globe.” The opening of the European manufacturing hub represents just one of a number of office openings for the company in 2013

Hygienic design makes process technology safer and more efficient The

microbiological and hygienic demands on the production of beverages and liquid foods are very high. Sensitive products need to stay in prime condition for a long time and meet rigorous standards of quality and sustainability. In future these standards are expected to rise still further, against a background of continued sparing use of natural and human resources. Just how these differing demands are to be met will be shown at drinktec, the World´s Leading Trade Fair for the Beverage and Liquid Food Industry, which takes place from September 16 to 20, 2013, in the exhibition halls in Munich. Richard Clemens, Managing Director of the conceptual sponsor of drinktec, the Food and Packaging Machinery Manufacturers Association (Fachverband Nahrungsmittelmaschinen und Verpackungsmaschinen), affiliated in the VDMA (Germany´s engineering federation), sums it up: “Designing and building machinery and plant in line with the requirements of hygienic design is an absolute must in our sector.” There are clear requirements for the implementation of hygienic design. These include an engineering design that is as simple as possible, access to all surfaces, no unnecessary surfaces, no hidden ‘dead’ spaces or roughness, and all liquids should be able to run off freely. Of continued importance is the use of materials that have outstanding process and cleaning characteristics as regards surface structure and temperature and chemicals resistance – from the smallest seal through to the largest tank. According to Richard Clemens, hygienically designed technology optimized for production processes offers more than just microbiological safety: “Product safety, i.e. protection of the consumer, is of course the main focus. But the hygienic design of process, filling and packaging systems also offers benefits in terms of efficiency: easy-to-clean surfaces and components will save on water, cleaning agents and energy. The total time spent on cleaning is shorter. And that means longer production times and increased efficiency of the systems technology.” The importance of ongoing hygiene monitoring The importance of ongoing cleaning in beverage and food production cannot be underestimated, because without this, standards will slip. Targeted hygiene monitoring helps maintain the microbiological status that is being aimed at. As well as product analysis, swabs and samples are taken which are then cultivated on selective micro culture media and analyzed. The current status of production is thereby made

Information on all aspects of process hygiene at drinktec 2013

transparent. If the monitoring takes place on a defined schedule as regards sample time and place, then the hygiene status of production can be effectively controlled through preventive cleaning and disinfecting processes. Broadly when it comes to cleaning, organic dirt is removed by alkaline and mineral-acid cleaning agents. Specific cleaning qualities can be achieved with the use of further additives. Enzymes continue to be of interest, and the applications for these will be discussed in the forums program at drinktec on September 18, in Hall A2. For the disinfection of surfaces and media, the beverage and food industry can also call on tried-and-trusted products that are based on chlorine, ozone, UV light, aldehydes, peracids, haloacetic acids, alcohol and ammonium compounds. Interesting new fields of application opened up by ECA disinfection In recent years much there has been much talk about the use of electrochemically activated (ECA) water in disinfection. In this process, membrane-cell electrolysis is used to produce a disinfecting chlorine compound from a watery salt solution. The use of ECA water has been investigated thoroughly, and interesting new fields of application can be found for processes in beverage and food production, as explained by Robert Günther, Branch Manager Food & Beverage / Drinking Water from the drinktec exhibitor ProMaqua: “Our electrolysis process means we can produce ECA water effectively on site, water that has a particularly low concentration of chloride. In practice the minimal chloride concentration of our ECA water means a minimization of the corrosion risk. Pipes, machine and system components are not attacked. With CIP (cleaning-in-place) applications, this also reduces the time input and energy consumption. When filling microbiologically sensitive beverages such as apple spritzer, and c o n t i n u o u s l y spraying with ECA water, we can

lengthen production times and minimize the use of conservation agents.” People as a source of contamination The final factor of course is the human component. For people are still one of the main sources of contamination in food and beverage production. As a result personal hygiene is given high priority in hygiene management. Hand washing and disinfection, cleaning and disinfecting shoes, working clothing and aprons, and tools, are just some aspects to be taken care of here. Visitors to drinktec 2013 can find out direct from many leading manufacturers just how best to tackle this issue. The spectrum of solutions ranges from small hand-washing stations with washbasin, dispensers and hand soap to hygiene sluices in which a large number of operatives can carry out the necessary hygiene measures in a short space of time. A range of companies can supply the correspondingly cleaned clothing. In short: process hygiene has many facets. It´s good to know that drinktec 2013 will cover them all in full.

Foreign News


How did you initiate this business of cocoa powder and cocoa products?It all got started in 2003 when I and my friend Ram Krishna acquired the Lotus Chocolate Company (listed in Mumbai stock exchange), surprising it may be to you but we did not know anything the chocolate business at that time, nor did we know how to make chocolates. Before acquisition Lotus chocolates never made any profits but after coming under our wing it has turned out to be profit making company. Cadbury played a major role in encouraging us to do this cocoa and chocolate business. In fact the first year we made itself we ended up making net profits. After four year in this business – Cadbury told us they needed cocoa bean processing and manufacturing unit base and with their support we made a base of unit at Baddi at Himachal Pradesh. We invested about 28 crore in setting up the cocoa processing plant unit there. 95 per cent of which was for Cadbury and the remaining 5 percent was for us. And for the last six years we have been working for Cadbury.The profits made from the Baddi processing unit was invested in setting up chocolate company in 2008. So now in Baddi we have a huge facility of cocoa processing unit and chocolate producing company. Cocoa processing unit was exclusively for Cadbury while the chocolate company was for other MNC’S and we also sell our own products in the market, like to the biscuit maker, ice cream companies, hotels and chocolate makers.

Could you enlighten your relationship with Cadbury-the journey, the affiliation and the understanding? It all started with Lotus chocolate company. Cadbury was already doing small businesses with it when we acquired the company, but they were planning to leave Lotus as their standard and quality were measuring up to the mark.

When we came in a lot investment was made to make the company good and maximizing the standard of quality. They worked with us for three years and were very satisfied with our way of operation, business and modernization of plant. After 3 years association, they suggested in putting up the cocoa process unit in Baddi.It was our sheer hard work and dedication that made Cadbury extends our relationship to Baddi processing plant.

What are your strategic plans for the coming five years in the cocoa and chocolate business?Basically we make cocoa products; we process cocoa beans to make cocoa mass, cocoa butter and cocoa powder. We now want to improve our capabilities, our work, the quality standard and the market reach. Whereas in the case of the chocolate company we are still at a nascent stage and are new in the market and recently we have started working with MNC’S to get new experience so that we can slowly but efficiently capture the market. In the next two to three years we will be good enough to cover quite a large part of the chocolate market.

You have already created your niche in the Indian market, so do you plan to enter the export market too as your company participated in the gulf food recently?I worked in Dubai for a good 20 years and that is what made me go to the gulf food. Basically our standards are good enough to be acceptable but may we have to work a bit harder to enter the western market. Whereas at the gulf food I have seen and found that our product are not less than theirs so we can easily sell in African and

Gulf market. The African cocoa production has always been counted amongst the best one in the world; do you think that in contrast, the Indian cocoa can make its presences felt in the global market with so much high ended competition?In the last 3 years the scenario has changed a lot in India in regard to the chocolate production. The big Indian chocolate producers are making great products, creamy and smooth chocolates and the quality has increased immensely.

I think Imports of chocolates will decrease gradually as our domestic chocolate companies are leveling their chocolate products to the quality of the imported chocolate. In the gulf market I have and compared the standard and Indian product are very good and highly acceptable.Well to answer your question that though the West African have best cocoa bean production, why do they import cocoa bean products from India? The truth is that though they have the cocoa bean, they

do not have any manufacturing or processing unit or capabilities and thus they import good and cost effective cocoa product and chocolate products from India.

What are your future plans are you going to expand and enhance your business further?Expansion is an ongoing thing with investment of money now and then. Also as the market increases, expansion and enhancement becomes a necessity.

DP CHOCOLATES

POTENTIALITY & CAPABILITY UP N GOING

DP Chocolates is one of leading cocoa processing and chocolate manufacturing company base in Hyderabad. DP Chocolates commenced its operations at the end of March, 2010 with a capacity of

12,000 MT to meet the growing demand for industrial chocolate in India. The Company’s state-of-the-art facility is located adjacent to our cocoa products manufacturing facility at Baddi.The company supplies compounds and chocolates in slabs, chips, paste and dips. Our major customers are food MNC’S operating in India. We also sell our products to Ice cream, bakery, and hotel industries.In a candid interview, Durga Prasad- Partner of DP Chocolates, told our editor Firoz H Naqvi about his company’s rendezvous with the cocoa and chocolate industry, the market and niche of being a up to standard company.

Interview


World’s Leading Trade Fair for the Beverage and Liquid Food Industry

Processing + Filling + Packaging + Marketing

September 16 –20, 2013 Messe München, Germany

Messe München GmbH | [email protected]. +49 89 949-11318 | Fax +49 89 949-11319

MMI India Pvt. Ltd. | [email protected]. +91 22 4255 4700 | Fax +91 22 4255 4719

D

IND

drinktec is the pacemaker for the beverages and liquid food industry. The whole industry comes together at drinktec—

compa nies large and small, regional and global.

This is the place to find solutions. Be inspired

by innovations, world premieres and new thinking.

drinktec—Go with the flow.

dt13-Bever+FoodProcess-130x340-E-IND.indd 1 07.01.13 09:46

Following the theme ‘Dedicated to eco-friendly environment’ at ACREX

India 2013, Danfoss Industries Private Limited – a global leader within energy-efficient solutions that help save energy and combat climate change, unveiled the curtain raiser event for the 14th edition of ACREX 2013 at The ITC Maratha, Mumbai. Danfoss India, in order to promote green growth is hosting ACREX’s first ever curtain raiser event. The ACREX 2013 Curtain Raiser event is a forum created by Danfoss in order to instil the importance of understanding and working towards energy efficiency. Danfoss is hopeful of making this forum an annual event. The theme for the evening was ‘towards sustainable development’ which is in keeping with the overall theme of ACREX this year. This curtain raiser event sponsored by Danfoss will be one among various forums to express Danfoss’ commitment to energy efficiency.Danfoss continues to focus on highly efficient solutions for both refrigeration and air-conditioning segments. As a result, the company will highlight some of its new products for the air-conditioning segment during ACREX 2013. The products include VZH- the 2nd generation of inverter scroll compressors for commercial applications, SH485 – Danfoss’ innovative 40 ton compressors for large chillers and rooftops and LLZ - the new scroll compressor

Danfoss Reiterates Importance of

‘Energy Efficiency and an Eco-Friendly

Environment’for LBP (Low Back Pressure) refrigeration which broadens the existing range for MBP (Medium Back Pressure) applications. Sponsored by Danfoss, the special curtain-raiser event encompassed an engaging panel discussion with keen participation from several eminent speakers from the industry. The curtain raiser received an overwhelming response, with the audience also being addressed by experts in HVAC & Refrigeration on the challenges faced by the industry and India’s increasing participation in combating against global warming.“We are pleased with being associated with ACREX 2013. This is a unique platform to increase awareness and the importance of Energy efficiency thereby enabling & building a sustainable future for India. The Co 2 challenge is real and energy consumption will grow by 45% by the year 2030, therefore, the need for deploying Co2 abatement technologies is getting much stronger. We at Danfoss with our “Solution ready” platform can significantly contribute to India’s Energy efficiency agenda. I really look forward to engaging with Industry stalwarts on this exciting event.” said P. Ravichandran, President Danfoss India. ACREX 2013, which is to be held from 7th to 9th March 2013 at Mumbai organized by Indian Society of Heating, Refrigerating and Air Conditioning Engineers (ISHRAE).

News


I always knew Yum! Brands, Inc. won’t give up on China so easily! The company suffered

a 6% decline in its fourth-quarter same store sales in China due to the recent food safety issues. But the company had to do something to gain back its customers’ confidence in China, from where it got almost 44% of its revenue last year, and Yum! is surely on the right track. What went wrong last quarter?After the new regulation and supervision in China’s food manufacturing and processing industry started, media reports alleged that excess antibiotics and hormones were found in some chicken products sold at KFC outlets. Though Yum! Brands, Inc. (NYSE:YUM) was not fined by the Chinese food safety authorities, but due to this negative publicity, Chinese consumers completely stopped visiting the KFC stores as a

Yum! Brands, is Trying Hard to Fix It: McDonald’s Corporation, Burger King

result of which the company faced a sharp decline in its fourth-quarter sales.Though Yum! Brands, Inc. (NYSE:YUM)’s same store-sales increased 3% in the U.S., 24% in India, and 3% at other international stores, driven by their new advertising and pricing strategies to attract budget-conscious customers, the falling numbers in China washed away most of the shine from its throne. Yum! Brands, Inc. (NYSE:YUM), which operates with a total of 38,200 restaurants worldwide, could report 1% rise in their overall revenue.So obviously, Yum! Brands, Inc. (NYSE:YUM) had to take some measures to gain back customers confidence in China, as it has always been a very important market for the company.Steps taken for fixing it up:Yum! Brands, Inc. (NYSE:YUM)

is fighting hard to re-establish its battered image in China. The company has announced that it would undertake steps to monitor its poultry suppliers in China to ensure food safety in its KFC outlets. Soon after investigations conducted by a third-party agency from 2010 to 2011 found eight batches of chicken, supplied to Yum! by Liuhe Group, with antibiotics levels that didn’t meet prescribed standards, Yum! stopped buying from Liuhe.The company is keeping a close watch on its suppliers, and is conducting vigorous testing procedures to check their suppliers’ quality standards. The company is cutting ties with suppliers that source their chicken from small farms that are hard to regulate. Yum! has recently announced that it is eliminating 1,000 slaughterhouses from its network, from where 25 of

their poultry suppliers source their chicken.The same strategy was applied by its competitor McDonald’s Corporation (NYSE:MCD) , which faced a similar situation few months ago. When the burger chain suffered from allegations of containing antibiotics in their meat,

it suppressed the negative publicity by telling consumers that it is detaching ties with the supplier in question. L u c k i l y , M c D o n a l d ’ s C o r p o r a t i o n ( N Y S E : M C D ) was not much impacted with the news like Yum!, and thus, their same-store sales in China dropped just 0.9% in the fourth quarter, and their total profit rose 1.4%.It’s good that Yum! Brands, Inc. ( N Y S E : Y U M ) has realized that the dominant reason behind their declining quality of chicken lies in China’s meat industry. The entire Chinese meat industry relies on small scale farms, and thus is vulnerable to risk as the small scale farms hardly meet the quality standards. Thus, Yum! is planning to tie up with international poultry suppliers. The company has announced that it’s working with international poultry suppliers, and is helping them enter the Chinese market, or to invest in the Chinese small scale suppliers to

improve their quality.Not only Yum! Brands, Inc. (NYSE:YUM) has realized the weakness in the Chinese meat industry, but it has also taken initiatives to bring it to the notice of the government that the industry requires more investment and quality check. The company has invited representatives from industry groups, such as the China Chain Store & Franchise Association, the China Cuisine Association, and the China Animal Agriculture Association to speak at the company’s press emphasizing the fact that the meat sector requires more investment and better management, to ensure quality and consumer safety.Further expansion:Competition is constantly increasing in the lucrative Chinese market. On one hand, its biggest competitor McDonald’s, has plans to add almost 750 restaurants to their 1300 outlets in China, while on the other hand, Burger King Worldwide Inc (NYSE:BKW), which currently operates only 100 outlets in China has plans to open almost 1000 new outlets in the mainland within the next five to seven years. Yum! already operates more than 4,200 KFC restaurants and 800 Pizza Huts in China.When all of its competitors are expanding, Yum! Brands, Inc. (NYSE:YUM) is not sitting idle. Though sales at its KFC stores open at least 12 months in China declined 41% in January, that won’t stop Yum from trying. The company plans to open at least 700 stores in China. Once the company manages to solve the quality issue problem, these large number of stores will surely help it to boost its topline.Foolish bottom line:Regaining the confidence of its consumers won’t be an easy task for Yum!, but the company has taken the first step to do so. The company is already showing decent performance in other parts of the world. Once the company becomes successful in regaining customer confidence in China, there will not be any looking back. I agree it will take time, may be not before the next two quarters, but I somehow have faith in this company. It will fight back.The article Yum! is Trying Hard to Fix It originally appeared on Fool.com and is written by Satarupa Bose.

Opinion


19

V S INTERNATIONAL

Specialty biomedical company Pamlab has signed an agreement to

sell its business to Nestlé Health Sciencefor an undisclosed amount. Nestlé Health Science aims to develop science-based nutritional solutions to deliver improved personalised healthcare for people with chronic medical conditions.Pamlab’s products, including Metanx, CerefolinNAC and Deplin, have helped address the nutritional management of metabolic issues associated with diabetic peripheral neuropathy,

Nestlé Health Science acquires Pamlabmild cognitive impairment and clinical depression respectively, and other diseases and conditions.“The acquisition of the Pamlab business is aligned with our strategic ambition to provide science-based nutritional solutions for people with chronic medical conditions,” said Luis Cantarell, Nestlé Health Science President and CEO.“Pamlab will particularly strengthen our brain health platform and provide us an additional foothold in metabolic health in the US. By leveraging

our nutrition heritage and US operations with Pamlab’s proven expertise in medical foods and strong salesforce capabilities, together we can play a key role in helping to manage certain chronic diseases and improve the quality of patients’ lives.” Nestlé Health Science anticipates it will be able to leverage Pamlab’s strong sales-force capabilities and reach to promote science-based personalised nutritional solutions in the US.

News


The project has created 80 direct jobs, 200 construction jobs and

over 500 indirect jobs, besides contributing significantly to the local economyThe first India-China joint venture in Australia, Riverina Oils and Bio Energy Pty Ltd (ROBE), has developed a 170,000-tonne oilseed crushing and edible oil refining plant with an investment of A$150 million (around Rs 830 crore) in Wagga Wagga, 470 km south-west of Sydney in New South Wales (NSW).The plant will also produce 105,000 tonnes a year of vegetable protein meal for use in the Australian poultry, dairy and animal feed industry. The project has created 80 direct jobs, 200 construction jobs, and over 500 indirect jobs, besides

First India-China JV in Australia sets up edible oil refinery

contributing significantly to the local economy.

ROBE’s key partners and shareholders include SP Chemicals, China, Asiawide Holdings, Singapore, Lotus Ventures, New York and India’s leading transport and energy company, Bhoruka Industries. For technology, the company has partnered with Desmet Ballestra, a world leader in the oils and fats technology and a supplier of key components of solvent extraction and refining plants across the world.

ROBE’s Managing Director D D Saxena told: “Australia exports oilseed, but imports both edible oil and protein meal. The crush margins in Australia are the highest in the world. It has globally competitive pricing

for oilseed exports, yet very high domestic prices for finished products. Value addition is central to the ROBE business proposition and critical to the future of the agri/food processing sector in Australia”.

The ROBE agribusiness venture is described as the largest value-added greenfield investment on Australia’s eastern seaboard and it is the first greenfield project to be funded by State Bank of India and Axis Bank. “Indian banks understand project finance and SBI has supported us through this difficult journey of bringing this project to fruition,” Saxena said.

The initial approval for the project was given in early 2007 and the ground-b r e a k i n g took place in S e p t e m b e r 2009, but bureaucratic and regulatory a p p r o v a l resulted in a three-year

delay and a cost over-run of over A$20 million. The plant started producing crude oil in December 2012 and refined oil in the second week of February 2013.

“In December, our first shipment of 500 tonnes of crude oil was sent to Gokul Refoils and Solvent Ltd in India. Over the next five years, we plan to export about 20,000 tonnes of refined oil a year to the US and Asia,” said Saxena, who had earlier run large food and agribusiness ventures for multinationals such as Unilever and Bakrie, and for India’s Thapar Group. ROBE will focus on canola for the next six

to eight months and then move to safflower, cottonseed, soybean and sunflower. The food processing industry is the largest manufacturing employer in Australia with more than 312,000 jobs. Welcoming the Indo-Chinese joint venture, deputy premier of NSW, Andrew Stoner, said in a message: “We appreciate the jobs and flow-on economic benefits that the investment creates in regional NSW.” ROBE’s official launch in Sydney was hosted by the Australia India Business Council, which plays a vital role in building bilateral business ties.

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Printed, Published By- Firoz Haider Naqvi, RNI no.-MHBIL05093/13/1/2007, Printed at Roller Act Press Services, C-163, Ground Floor, Naraina Industrial Area, Phase-1, New Delhi-110028, Reg Office: 103, Amar Jyot, Pooja Nagar, Mira Rd (E), Thane-401107, Delhi Office: F14/1, Shahin Baugh, Kalandi Kunj Rd, New Delhi-110025

EDITORFiroz H Naqvi

CONSULTING EDITORBasma Husain

MARKETING EXECUTIVEBrijesh Mathuria

PRODUCTION MANAGERSyed Shahnawaz

GENERAL MANAGERGyanendra Trivedi

CIRCULATION MANAGERSeema Shaikh

beverages & food processing times mar'13 (i)

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