Food Industry News
Food Additive market Has Potential for Immense Growth
In India food consumption of ready to eat products is on the rise. Indians prefer processed and packaged foods, bakery items, alcoholic and non-alcoholic beverages and cereals to have natural food ingredients as additives. Since there is a demand for these convenience foods the market for food additives in India is anticipated to grow at a CAGR of over 12% during 2015-2020. Flavors used in beverages, savory snacks and cereals and natural, low calorie sweeteners such as Stevia are the most used additives in India.
There is a large presence of food and beverage manufacturing companies in the states of Gujarat and Maharashtra and so the additive demand is highest in the western sector. The main suppliers of additives in India are Firmenich Aromatics India Private Limited, Zydus Cadila, Danisco and Adani Wilmer Limited and the biggest consumers are multinationals like Mars, Mondelez, PepsiCo, Inc. and Kraft Foods. Food additives are edible substances added to food products to enhance their taste, color, appearance and texture. They also prevent microbial growth and increase product life.
PepsiCo Opens Largest Beverage Plant in Andhra Pradesh
The largest PepsiCo beverage plant was recently inaugurated by the Chief Minister in Sri City in Andhra Pradesh. The plant will have nine production lines though only the first has been commissioned presently and the entire plant will require a commitment of Rs.1200 crores. Besides carbonated drinks it will manufacture fruit juice-based drinks and sports drinks. The state-of-the-art plant will also be the Company’s most water efficient plant.
PepsiCo feels that a new chapter is not only beginning for the new state but find this a good opportunity to show their renewed commitment to India as they have been present here since the past 25 years. The plant will employ thousands of people and since 1/3 of their employees are going to be women it will be a gender diverse plant.
Tea Business in India is worth $10 billion
In India tea has a huge presence and this is why Chayoos the Chai Café is looking for venture capital to add another 50 outlets to their existing eight cafes. They wish to open 20 Chai Café’s in NCR and the other 30 in Pune, Mumbai and Bangaluru. Tea has a huge market size but the problem in India is that it is mostly unorganized but it has the potential to be to grow into a billion dollar enterprise.
Chayoos presently runs Chai Cafes and they have now begun to experiment with ‘chai on demand’. Ola cabs and delivery partners Grofers are working with Chayoos to deliver tea at doorsteps for more than 500 orders daily. Chayoos use sms, Facebook and twitter to interact with customers. Since the experiment is working out well and their Chai Cafes are doing good business, Chayoos wish to take their venture further.
Sami Group to take Herbal Products to Gulf
Sami Group is looking for investments to enter the Gulf market with it herbal extracts and phytonutrients. Though pharmaceutical companies are its main clients, it has now selling its own products, including its cosmetics range Johra, after the formation of Sami Direct through which they also sell nutraceuticals. Sami Direct with 180,000 distributors already has a presence in Malaysia, Indonesia and Singapore.
The company uses 7% of its internal resources on research and it plans to continue market-oriented research that could find solutions for diabetes, obesity, and arthritis and cardio vascular ailments. The group already holds 97 international patents in natural products and plans to introduce two new products that have received drug approval. They also plan to make a product from the leaves of the drumstick tree and grow black ginger in India which is used as an aphrodisiac in Japan.
CPF India Pvt. Ltd is looking to expand in India
Charoen Pokphand Foods India Pvt. Ltd (CPF) the India branch of the Thai conglomerate is planning to expand its operations in India. Their sales mainly come from food and agro industry. Presently CPF India Pvt. Ltd. operates the international quick service chain, Five Star Chicken and has stores mainly in South India. Out of the 260 stores it operates 95% are franchise based. The company is now looking for an investment of $500 million to expand the market to include shrimp, poultry and food.
Since the company brings local taste and flavor when developing new products it appeals to the masses and this is what strengthens Five Star Chicken. The company is growing at the rate of 10 to 15 percent and had a revenue of $600 million last year. CF foods has its own farms, distribution and storage facilities and they wish to ensure food safety right from the “farm to the fork” which is the slogan of WHO for 2015 food safety campaign.