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Trends within the Powder Market and innovations in Drying and evaporation December 11, 2018 COMPANY CONFIDENTIAL

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Page 1: Trends within the Powder Market and innovations in …...Executive Overview Following analysis contains extracts from three of the more recent market studies. • Despite volatility

Trends within the Powder Market and

innovations in Drying and evaporation

December 11, 2018 COMPANY CONFIDENTIAL

Page 2: Trends within the Powder Market and innovations in …...Executive Overview Following analysis contains extracts from three of the more recent market studies. • Despite volatility

Adim : Pranav Shah

- Global process category manager, dry dairy

- Based in Copenhagen, Denmark

- Dairy engineering, MBA. Leading innovative organizations (2018)

- 15 years experience within evaporation and spray drying

- 4 years with Nestle/Amul, 11 years with engineering companies

Introduction

COMPANY CONFIDENTIAL

2

Page 3: Trends within the Powder Market and innovations in …...Executive Overview Following analysis contains extracts from three of the more recent market studies. • Despite volatility

• Introduction to SPX Flow Anhydro

• Global trends in the ingredients market

• New technologies – components & processes

Index

Short but clear agenda!COMPANY CONFIDENTIAL

3

Page 4: Trends within the Powder Market and innovations in …...Executive Overview Following analysis contains extracts from three of the more recent market studies. • Despite volatility

Drying & Evaporation – Anhydro Brand

Brief History

• Founded in 1948

• Acquired by SPX Flow in 2010

• Leading supplier of evaporator and dryer

Core Markets

• Dairy

• Food

• Chemical

• Pharmaceutical

• Main Office

• Innovation Centre

December 11, 2018

Søborg, Denmark

Brand Overview

Page 5: Trends within the Powder Market and innovations in …...Executive Overview Following analysis contains extracts from three of the more recent market studies. • Despite volatility

Innovation Center

Comprehensive customer R&D centers enable us to innovate with our customers

5

Silkeborg and Soeborg, Denmark

Page 6: Trends within the Powder Market and innovations in …...Executive Overview Following analysis contains extracts from three of the more recent market studies. • Despite volatility

Executive Overview

Following analysis contains extracts from three of the more recent market studies.

• Despite volatility in pricing overall consumption is expected to continue growth at a steady pace

• Growth is driven by increased consumer awareness around health and nutrition• Rising populations and increased disposable incomes in emerging

markets• Aging populations and rising level of health disorders due to sedentary

lifestyles in mature markets

December 11, 2018COMPANY CONFIDENTIAL 6

Page 7: Trends within the Powder Market and innovations in …...Executive Overview Following analysis contains extracts from three of the more recent market studies. • Despite volatility

Executive Overview

• Increased demand for foods that deliver higher nutritional value

• Strong demand growth for functional and fortified product with high demand for products with high protein content

• Previously considered niche sports and clinical nutritional products moving more towards mainstream consumption

• Busy lifestyles demanding more convenient “on the go” foods that fulfil nutritional requirements

December 11, 2018COMPANY CONFIDENTIAL 7

Page 8: Trends within the Powder Market and innovations in …...Executive Overview Following analysis contains extracts from three of the more recent market studies. • Despite volatility

Global Dairy Ingredients Market- by Category

December 11, 2018COMPANY CONFIDENTIAL 8

Dairy Ingredients Market by Value (US$ billions)

Sources: MarketsandMarkets Analysis Published October 2015Base Year: 2014

Supported by increasing consumer awareness around health and awarenessDairy Ingredients market driven by rising popularity of protein enriched foods and beverages

Dairy Ingredients Market by Volume (KT)

27,6

8,2

3,5 2,9 2,2 1,2

34,3

12,4

4,7 3,7 3,1 1,6

0

5

10

15

20

25

30

35

40

Milk Powder WheyIngredients

Lactose &Derivatives

Casein &Caseinates

MPC & MPI Others

2015e 2020p

Category 2013 2014 2015 2020p CAGR 2015-20

Milk Powder 26.414 26.486 27.593 34.292 4.4%

Whey Ingredients 7.326 7.598 8.214 12.413 8.6%

Lactose & Derivatives 1.515 2.006 2.154 3.063 7.3%

Casein & Caseinates 3.278 3.310 3.519 4.741 6.1%

MPC & MPI 2.651 2.764 2.878 3.714 5.2%

Others 1.053 1.123 1.194 1.565 5.6%

TOTAL 42.238 43.289 45.553 59.791 5.6%

8.666

4.115

2.064

320 23395

9.461

5.011

2.475

374 305113

0

2000

4000

6000

8000

10000

Milk Powder WheyIngredients

Lactose &Derivatives

Casein &Caseinates

MPC & MPI Others

2015e 2020p

Category 2013 2014 2015 2020p CAGR 2015-20

Milk Powder 8,367.4 8,515.4 8,666.1 9,460.5 1.8%

Whey Ingredients 3,806.8 3,957.5 4,114.7 5,010.7 4.0%

Lactose & Derivatives 1,919.1 1,990.1 2,063.8 2474.9 3.7%

Casein & Caseinates 208.9 220.5 232.7 304.7 5.5%

MPC & MPI 300.3 309.9 319.8 374.4 3.2%

Others 88.2 91.4 94.6 112.8 3.6%

TOTAL 14,690.7 15,084.8 15,491.7 17,738.0 2.7%

Page 9: Trends within the Powder Market and innovations in …...Executive Overview Following analysis contains extracts from three of the more recent market studies. • Despite volatility

Global Dairy Ingredients Market - by Region

December 11, 2018COMPANY CONFIDENTIAL 9

Dairy Ingredients Market by Value (US$ billions)

Sources: MarketsandMarkets Analysis Published October 2015Base Year: 2014

APAC region dominates Global dairy Ingredient demandDriven by China’s large populations rising adoption of Dairy products and increased expenditure on healthy foods

Dairy Ingredients Market by Volume (KT)

14,7

11,210,0 9,7

20,1

14,1 13,1 12,5

0

5

10

15

20

25

APAC Europe Rest of World North America

2015e 2020p

Category 2013 2014 2015 2020p CAGR 2015-20

North America 8.918 9.197 9.652 12.506 5.3%

Europe 10.543 10.742 11.202 14.065 4.7%

APAC 13.412 13.811 14.651 20.123 6.6%

China 7.007 7.250 7.728 10.866 7.1%

Rest of World 9.364 9.538 10.047 13.132 5.5%

Brazil 3.652 3.743 3.968 5.351 6.2%

Middle East 1.264 1.282 1.346 1.727 5.1%

TOTAL 42.238 43.289 45.553 59.791 5.6%

4.876

4.0043.278 3.335

5.906

4.332 3.7703.731

0

1000

2000

3000

4000

5000

6000

7000

APAC Europe Rest of World North America

2015e 2020p

Category 2013 2014 2015 2020p CAGR 2015-20

North America 3,190.4 3,261.5 3,334.6 3,730.7 2.3%

Europe 3,880.8 3,941.5 4,003.5 4,331.6 1.6%

APAC 4,531.6 4,699.6 4,876.1 5,905.9 3.9%

China 2,184.2 2,268.8 2,356.6 2,849.3 3.9%

Rest of World 3,087.9 3,182.1 3,277.5 3,769.7 2.8%

Brazil 1,003.6 1,029.2 1,055.4 1,197.1 2.6%

Middle East 367.5 378.6 390.1 452.9 3.0%

TOTAL 14,690.7 15,084.8 15,491.7 17,738.0 2.7%

Page 10: Trends within the Powder Market and innovations in …...Executive Overview Following analysis contains extracts from three of the more recent market studies. • Despite volatility

Global Dairy Ingredients Market - by Application

December 11, 2018COMPANY CONFIDENTIAL 10

Dairy Ingredients Market by Value (US$ billions)

Sources: MarketsandMarkets Analysis Published October 2015Base Year: 2014

Increased consumer awareness of the need for nutrient rich diets driving demand for Dairy ingredients

Dairy Ingredients Market by Volume (KT)

20,6

10,2

5,1 4,0 2,7 3,0

27,0

12,5

7,25,7

3,6 3,8

0

5

10

15

20

25

30

Dairy Products BakeryConfectionery

Sports/ClinicalNutrition

Infant MilkFormula

ConvenienceFoods

Others

2015e 2020p

Category 2013 2014 2015 2020p CAGR 2015-20

Dairy Products 19.085 19.552 20.586 27.044 5.6%

Bakery & Confectionery 9.782 9.784 10.156 12.459 4.2%

Sports & Clinical Nutrition 4.524 4.785 5.107 7.214 7.2%

Infant Milk Formula 3.570 3.743 4.007 5.740 7.5%

Convenience Foods 2.499 2.559 2.696 3.561 5.7%

Others 2.777 2.864 3.000 3.781 4.7%

TOTAL 42.238 43.289 45.553 59.791 5.6%

6.798

3.623

1.658 1.581989

843

7.807

3.881

2.0171.982

1.142909

0100020003000400050006000700080009000

Dairy Products BakeryConfectionery

Sports/ClinicalNutrition

Infant MilkFormula

ConvenienceFoods

Others

2015e 2020p

Category 2013 2014 2015 2020p CAGR 2015-20

Dairy Products 6,440.3 6,616.2 6,798.2 7,807.1 2.8%

Bakery & Confectionery 3,529.5 3,575.4 3,622.6 3,881.3 1.4%

Sports & Clinical Nutrition 1,536.1 1,595.4 1,657.7 2,016.8 4.0%

Infant Milk Formula 1,450.2 1,513.9 1,581.4 1,982.0 4.6%

Convenience Foods 935.9 962.1 989.3 1,141.8 2.9%

Others 798.9 821.7 842.5 909.0 1.5%

TOTAL 14,690.7 15,084.8 15,491.7 17,738.0 2.7%

Page 11: Trends within the Powder Market and innovations in …...Executive Overview Following analysis contains extracts from three of the more recent market studies. • Despite volatility

Product value Vs Capital investment

Product value Vs Capital investment

11

Liquid

whey

Whey powder

Skimmilk

powder

WPC 35

powder

Permeate

Demin. whey

powderWPC 60

powder

WPC 80

powder

WPI

powder

lactose

Lean

cream

powder

Value

Value of product Capital investmentDecember 11, 2018COMPANY CONFIDENTIAL

Page 12: Trends within the Powder Market and innovations in …...Executive Overview Following analysis contains extracts from three of the more recent market studies. • Despite volatility

New process to make ideal ingredients

12

Raw milk

MFF - Fractionation

Ideal wheyIdeal Casein

Ideal WPC

Ideal Lactose

Ideal Permeate

Ideal Demin whey

powder

Pasterurization /Seperation Cream/butter

Page 13: Trends within the Powder Market and innovations in …...Executive Overview Following analysis contains extracts from three of the more recent market studies. • Despite volatility

Why Ideal ingredients

13

Cultures Colours

Salt

Cheese additives Rennet and coagulants (acids)

Page 14: Trends within the Powder Market and innovations in …...Executive Overview Following analysis contains extracts from three of the more recent market studies. • Despite volatility

ULTRA FILTRATION RENTENTATE WPC

SWEET WHEY

FEED IN

PHE

PHE

PRE-HEATING

TALL FORM DRYERCYCLONE

POWDER STORAGE

BAGGING-OFF

PERMEATEWPC

SWEET PERMEATE

TREATED WITH

RO/NF¨(18-22%)CENTRIFUGAL

PUMP

CENTRIFUGAL

PUMP

CENTRIFUGAL

PUMP

CENTRIFUGAL

PUMPCENTRIFUGAL

PUMPCENTRIFUGAL

PUMP

CENTRIFUGAL

PUMP

PRE-HEATING PRE-HEATING

MVR EVAPORATOR

HOLDING

VESSEL

HOLDING VESSEL

FLASH

COOLERTVR

EVAPORATOR

BUFFER TANK

CRYSTALIZATION TANKS

CRYSTALIZATION TANKSCENTRIFUGAL

PUMPCENTRIFUGAL

PUMP

CENTRIFUGAL

PUMP

CONICAL

SPRAY

DRYER

(CSD)

WITH

BUSTLE

CRYSTALIZATIO

N BELT

EXTERNAL

FLUID BED

SIFTER

CYCLONEBAG FILTER

POWDER STORAGE

BAGGING-OFF

NON-CAKING PERMEATE/

NON-CAKING WHEY

WPC and Non caking permeate process

Page 15: Trends within the Powder Market and innovations in …...Executive Overview Following analysis contains extracts from three of the more recent market studies. • Despite volatility

Demin whey powder

15

RECEPTION TRUCKS

(SWEET WHEY)

SILOS

NANO FILTRATION( UP

TO D35)

ELECTRODIALYSIS(UP

TO D70)ION EXCHANGE

(USED ONLY UP TO

D90)

CENTRIF

UGAL

PUMP

CENTRIF

UGAL

PUMP

CENTRIF

UGAL

PUMP

CENTRIF

UGAL

PUMP

FLASH

COOLER

CRYSTALLIZATIO

N TANKS

CRYSTALLIZATIO

N TANKS

CONICAL SPRAY

DRYER CYCLONE

BAG

FILTER

EXTERNAL

FLUID BED

SIFTER

FINE

RETURNS

POWDER

STORAGE

BAGGING-

OFFDEMINERALIZED WHEY

POWDER (D35-D90)

Page 16: Trends within the Powder Market and innovations in …...Executive Overview Following analysis contains extracts from three of the more recent market studies. • Despite volatility

High Yield Lactose process

High yield lactose process16

REMOVED CALCIUM

De- Calcification

UF PERMEATE SILO TANKMEMBRANE

- RO POLISHER

MEMBRANE- RO PLANT

PROCESS WATER

CENTRIFUGAL PUMP CENTRIFUGAL PUMP CENTRIFUGAL PUMPCENTRIFUGAL PUMP

PHE

CAUSTIC TANK

CENTRIFUGAL PUMP

HOLDING & CALCIUM

PRECIPITATION TANKSIF

First Pass Process

CLARIFIER

DE-COLOURING

SYSTEM

STORAGE OF

RO RETENTATE

DECALCIFIED

PRODUCT TANKS

FLASH

COOLER

CENTRIFUGAL PUMP CENTRIFUGAL PUMP LACTOSE CRYSTALLIZATION TANKS

CENTRIFUGAL PUMP

CENTRIFUGAL PUMP

CENTRIFUGAL PUMP

MOTHER LIQUOR

SECOND PASS

FLUID BED DRYERSIFTER

LACTOSE SILO

EVAPORATOR

MOTHER

LIQUOR

PHE

MOTHER LIQUOR

STORAGE TANK

STORAGE TANKS-NF RETENTATE

MEMBRANE-NF PLANT

MEMBRANE-RO POLISHER

PROCESS WATERMOTHER LIQUOR

FIRST PASS

Page 17: Trends within the Powder Market and innovations in …...Executive Overview Following analysis contains extracts from three of the more recent market studies. • Despite volatility

Some Innovations on components

and processes

17

Page 18: Trends within the Powder Market and innovations in …...Executive Overview Following analysis contains extracts from three of the more recent market studies. • Despite volatility

Cyclone performance

Velocity field in cyclonesDecember 11, 2018COMPANY CONFIDENTIAL

Cyclone for low fat powder Cyclone for high fat powder

Tangential velocity in cyclones

Page 19: Trends within the Powder Market and innovations in …...Executive Overview Following analysis contains extracts from three of the more recent market studies. • Despite volatility

New Bag filter design

New design

▪ Reduced tangential velocity at the top entrace

▪ Expanded cylinder diameter minorly

▪ Less tearing of bags

▪ Possibility of addition of rupture discs below the bags

▪ Longer running hours

Page 20: Trends within the Powder Market and innovations in …...Executive Overview Following analysis contains extracts from three of the more recent market studies. • Despite volatility

December 11, 2018COMPANY CONFIDENTIAL 20

Nozzle and Air distributor camera

Camera solutions

Installed at commerical sites

Camera as nozzle

Page 21: Trends within the Powder Market and innovations in …...Executive Overview Following analysis contains extracts from three of the more recent market studies. • Despite volatility

Magnerscan

December 11, 2018COMPANY CONFIDENTIAL 21

• No chemical products for the control

• Performed in very short time compared to other methods

( 2 days vs. Dye penetrants = 1 week).

• Better Accuracy for detection

• Specific Scaffolding designed for dryers.

Unique Dryer Inspection Technology

Page 22: Trends within the Powder Market and innovations in …...Executive Overview Following analysis contains extracts from three of the more recent market studies. • Despite volatility

Capacity built up in existing dryer

Dehumidification + cavitator additional 22

8-10 % increasein capacity

Page 23: Trends within the Powder Market and innovations in …...Executive Overview Following analysis contains extracts from three of the more recent market studies. • Despite volatility

Capacity built up in existing dryer

23

Existing evaporator New evaporator

New feed system

20% increasein capacity

Page 24: Trends within the Powder Market and innovations in …...Executive Overview Following analysis contains extracts from three of the more recent market studies. • Despite volatility

COMPANY CONFIDENTIAL