Snapshots of Food Industry News
Mother’s Recipe acquires Elmac Agro Manufacturing
Mother’s Recipe, owned by Desai Brothers has acquired Elmac Agro Manufacturing for Rs.30 crore. The deal was funded through internal accruals. The Kolkata based Elmac Agro will bring in an entirely different set of products and an additional 150 distributors. Elmac is the market leader in the East and its sauces and condiments like ‘kasundi’ or mustard sauce are popular. It sells a range of product lines under its own brand and also manufactures for third-parties. The management of Elmac Agro will continue to supervise the production and Mother’s Recipe will look after sales, distribution and marketing presence.
Mother’s Recipe will invest an additional Rs.10 crore in the next few months to modernize Elmac’s manufacturing capacity. The advantage that the acquisition will bring to Mother’s Recipe is that it will be able to get a foothold in the hotels, restaurants, and catering (HoRaCa) space, a segment which they have entered just six months back. Under the Elmac brand, Mother’s Recipe is targeting sales of Rs.70 crore in the East where the brand presently has 20 percent turnover. This acquisition will see Mother’s Recipe grow from 20 to 25 percent to 30 percent in the current financial year against a turnover of INR 200 crore. They expect to grow up to 35 percent in the coming years and could go in for other acquisitions. The India food industry is growing at a CAGR of 10 percent and is expected to touch the US $200 billion in 2015.
India’s Oil-meal exports plummet In October
According to Solvent Extractors’ Association (SEA) in October India’s oil-meal exports fell by almost 94.3 percent year-on-year. Buyers bought only 13,716 tonnes of oil-meal as there were no takers for the expensive Indian rapeseed meal and soymeal. The Mumbai based trade body, SEA, said that India sold 763,113 tonnes of oil-meal in the seven months leading to October as compared to1.26 million tonnes sold in the same period last year. India is a leading oil-meal exporter to Southeast Asia but this October has seen sales plummet.
Nestle partners with Snapdeal for online sales after Maggi re-launch
After nearly five months Maggi noodles have resumed sales in India. The FSSAI had imposed a ban on the product following reports of higher than permitted levels of lead and MSG. Nestle India faced some challenging times but now the company has a sense of satisfaction in getting everyone’s favorite noodles back on the consumers’ plates. The company understands that the consumers in India have a special bond with Maggi and the company is all set to strengthen these bonds further. On resumption of sales nestle India thanked their India employees, suppliers, distributors, retailers, and millions of consumers for their support during the grueling times. The company has made sure that channel partners and distributor are prepared for a smooth Maggi roll out. At the same time, Nestle India has also tied up with Snapdeal for an online roll out.
New Manpasand Beverages plant to come up at Ambala
Manpasand Beverages has two manufacturing facilities at Vadodara in Gujarat, and one each at Varanasi in Uttar Pradesh and Dehradun in Uttarakhand. The fruit juice manufacturer is all set to open a fifth manufacturing plant in Ambala in Haryana. The plant is being set up at a cost of Rs.153.30 crore and would begin manufacturing by March 2016. They will manufacture the flagship product ‘Mango Sip’, along with the newly launched ‘Fruits Up’ range of fruit drinks and carbonated fruit drinks, and Manpasand ORS.
Among other plans, the company plans to modernize its Vadodara and Varanasi facilities. This policy has been adopted to see fast-paced growth. Though the company presently targets the rural and semi-rural markets they are now keen to penetrate into the urban markets. Manpasand Beverages have a presence in 24 states through more than 200,000 retailers, about 2,000 distributors and 200-plus super stockists.
Dunkin’ Donuts ties-up with Grofers to deliver donuts
In a first of its kind move Dunkin’ Donuts and Grofers, who undertake grocery deliveries, have tied-up to deliver Dunkin’ Donuts’ packaged and fresh products to doorsteps. This new trend should see the American brand push consumption in India. The brand has introduced some packaged products like donut cakes and presently that is what Grofers will deliver. Later, the Jubilant FoodWorks Limited owned, Dunkin’ Donuts will scale up with other menu items. Jubilant is India’s major food service company and it has exclusive rights for developing and operating Dunkin’ Donuts restaurants for India. Dunkin’ Donuts has 61 restaurants in 21 cities in India.
GCMMF promotes Kishore Jhala as Chief Operating Officer
Dairy major, Gujarat Cooperative Milk Marketing Federation (GCMMF) that owns the Amul brand has promoted Kishore Jhala as their Chief Operating Officer (COO). Earlier, Jhala was Chief General Manager at GCMMF. He joined the company in 1986 as a product manager and in the last 30 years has worked with the company in various capacities, with responsibilities chiefly in sales and marketing.