Snapshots of Business News
Rasna’s new facility likely to commence operations in January 2016
The Rs.100-crore Rasna food and drinks facility will come up in Andhra Pradesh by January 2016. Laying emphasis on the health category of foods Rasna has a full range of products rich in vitamins. The new unit is likely to produce 250 million glasses of drinks a year. Though the company is rolling out cornflakes and other snacks but it is going slow due to product approval. Their new products are also undergoing testing as the company wants to make sure everything is in compliance before introducing them into the market.
The company MD Piruz Khambatta also pointed out that quality and voluntary compliance of regulations are the hallmark of a good food processing industry. However, as far as export is concerned the biggest challenge is marketing. For visibility and to list in supermarkets a vast investment of around $1-1.5 million is required. He feels that India needs to change its export policies and just like ‘Digital India’ and ‘Skill India’ there should be ‘Food from India’ mission for food processing.
Corpus Fund set up to Drive Processed Food Exports
The Agricultural and Processed Food Products Export Development Authority (APEDA), the Centre and Industry will together set up a ₹50-crore corpus fund. The fund will be utilised to help small and medium scale industries to market their brands internationally by hiring space in markets or conducting food festivals to increase exports in key markets. The Marketing Development Assistance (MDA) scheme provides some subsidy to companies to promote their products through television commercials, press and exhibitions but it covers only 25 per cent of the cost so the corpus fund will offer more assistance. Rajshree Pathy, Chairperson, CII Southern Region, said the industry is growing at 9 per cent annually and is worth $65-70 billion.
Piruz Khambatta, Chairman, CII National Committee on Food and Processing on the other hand said that Indian companies concentrate only in areas of larger Indian presence though there is a huge scope in other markets. He felt Indian companies need to work on their brand presence. An important aspect that will help to improve the image of Indian foods, so they are considered safe, was to set up laboratories and test processed food for compliance with international standards.
By 2020 Meat Substitutes Market will be Worth USD 5.17 Billion
Meat substitutes market that comprises of tofu and tofu ingredients, tempeh, TVP, quorn, other soy products, soy-based, wheat-based, mycoprotein and which include both frozen and refrigerated products grew at a CAGR of 6.4 per cent in 2015-2020. The market for tofu and tofu ingredients is likely to witness the highest growth. This is because of the widespread awareness about the health benefits of soya bean. Also high production in countries such as the U.S., India, and China is helping growth. The demand for healthy diversified foods and the growth in the convenience food industry is also supporting the growth of the meat substitutes market in the Asia-Pacific region.
The soya segment alone accounted for 68 per cent of the market in 2014 because all over the world it is considered a highly nutritious food. In emerging economies there is an increased demand for meat substitutes because of health awareness. Leading players in this market include Amy’s Kitchen and Beyond Meat and MGP Ingredients from USA, Sonic Biochem Extractions Limited form India and Garden Protein International Inc. from Canada. Companies are making new products and adopting strategies like acquisitions, agreements, and joint ventures. This has allowed them to increase customer base in key emerging markets.
Multinational Brewery in India Books Alfa Laval for Process Solution
Alfa Laval provides specialized products and engineering solutions based on its key technologies of heat transfer, separation and fluid handling. The global leader in engineering solutions assists customers so they can optimise the performance of their processes. This is the reason why a brewery group in India has booked Alfa Laval to supply them a process for SEK 60 million. The solution is to be delivered in 2016 and the process will handle yeast propagation, fermentation, maturation and filtration. Once it is installed the brewery will be the first in India to use Alfa Laval’s unique mixing technology to reduce the fermentation processing time. This technology works on the application of forced mixing which reduces fermentation time by more than 30 per cent.
Amul to launch India’s first branded lactose-free milk
Customers allergic to lactose will now be able to get lactose-free milk. Amul is all set to launch India’s first branded lactose free milk very soon. Those who are lactose intolerant find it difficult to digest milk sugars (lactose) from dairy products, due to insufficient amounts of lactase enzyme in the gut. There is some thinking that there could be a premium on the product but Amul says that like all their other products lactose free milk would also be reasonably priced.
Europe is the leader in the lactose free market and the demand is likely to see growth of 75 per cent. There is no data about the number of Indians being lactose sensitive unlike in the west but a demand for lactose free products is growing in India too. Lactose free milk in tetra packs is likely to make big sales for Amul like their liquid milk. Amul is investing between Rs.800-1200crore in raising processing capacity so by 2020 they will have a capacity of 36million tonnes of milk per day.
Global Protein Ingredients Market to reach USD 33.91 billion by 2020
The protein ingredients market is growing exponentially fuelled by the demand for functional foods. Protein fortification has become important as it helps to meet nutritional deficiency. Protein ingredients are also used in infant formula, personal care and cosmetic products and the demand for these products is increasing by the day. More than 45% of the share of the protein ingredient market goes to food and beverages. As customers’ needs for health benefits increase they will impact the protein ingredients market positively. Moreover technology has advanced to such an extent that plant, animal and dairy proteins can be used in concentrated form in beverage powders, frozen desserts, sour cream, sour cream dips and other cheese products.
Animal proteins which are said to benefit cancer patients have the highest growth and account for 70% of the revenues followed by egg proteins at 40 per cent Egg protein is used to fortify food and beverage products, bakery, ice creams, sports foods and meats. The animal feed industry in India and China is spearheading growth in Asia Pacific which might exceed 20 per cent by 2020. North American consumption of energy bars, cold cereals and snacks is responsible for the growth in the consumption market. Major participants in the market are Mead Johnson, Solae and Cargill which account for 80 per cent share of the market and raw material suppliers include Brazil, India, China and the U.S.
NZ based Zespri International ties up with Mumbai Dabbawalas
Zespri International, the largest Kiwi fruit marketer, has tied up with Mumbai Dabbawalas to sell a variant of kiwi fruit to 5000 households in Bandra and Andheri areas. Dabbawalas have great organisational skills and have been delivering hot lunch boxes, prepared in homes, to offices for more than 120 years. Zespri International feels that partnering with Dabbawalas will allow people to sample and buy the fruit directly from these Dabbawalas. Zespri feels that it is a great marketing opportunity and will enable them to deliver fruit right to the doorstep of consumers. The trials are to begin soon.
Growing Food Processing Industry Driving Global Food Coating Ingredients Market
Demand in health foods, confectionaries, ready to eat fried foods and bakery products are driving the growth in the food coating ingredients market across the globe. Another reason for growth in food coating is the requirement for anti-microbial coating so there is a requirement for various coating ingredient options. Coating is one of the most important stages in food processing as appearance, texture and taste are dependent on it. Coating ingredients are divided into categories according to type such as fats and oil, cocoa and chocolates, spices, flours, starches, syrups and sugar, salts, hydrocolloids, and other coatings. The food coating market is also divided according to its use in confectionaries, ready-to-eat cereals, dairy products, bakery products, nutritional bars and snacks, meat and poultry products, vegetables and fruits and others.
Presently the food coating ingredient market in the Asia Pacific region is at a stage where it is just emerging and is hoping to see upward movement with the growth in demand from confectionaries and dairy industries. Once the demand for bakery and chocolate products escalates in India and China this industry will see a major upward swing. The opening of food parks in India is also likely to boost the food and beverage industry. This increase in the food and beverage industry will also push growth in the food coating ingredients market in the coming years.