Snapshots of Food Industry News
Future Group to tie with Star Bazaar for selling packaged foods
Future Group and Trent’s Star Bazaar might be competitors in the hypermarket space but the two will be joining hands to sell Future Consumer Enterprise’s private brands in Star Bazar outlets. Kishore Bayani, CEO Future Group, is reportedly planning a distribution alliance with Tata’s Trent Star Bazaar to sell their packaged brands like Tasty Treat and Clean Mate. Grocery and food products like dairy, atta, dips, sauces along with ready-to-eat food and beverage brands like Sunkist will also be sold at Star Bazaar outlets.
Future Group has plans to become one of the big players in the FMCG sector where it will be competing with majors like ITC and Hindustan Unilever Foods. The integrated food and FMCG is known to have expertise in agro-sourcing, manufacturing, brand development and urban and rural distribution. As part of its expansion plan the company has also appointed distributors in cities like Varanasi. By 2021 the Future group would like to have a sales turnover of Rs.20, 000crore from its FMCG-led consumer brands.
Mama Mia working on introducing more dairy based products
Dessert brand, Mama Mia is all set to introduce more dairy-based products in India. The company uses both restaurant and retail formats and in the coming months it aims to grow its business by 100 percent. Mama Mia is also focusing on FMCG distribution of its pre-packaged products. Mama Mia products will therefore also be available in 500 ml tubs from multiple organised sector retailers. For diabetic customers and those who wish to avoid sugar the company already has zero sugar gelato. Gelato is the Italian word for ice cream and so Mama Mia is also called the gelato chain and is owned by young entrepreneurs Adhiraj Thirani and Akshat Singhania.
The company plans to expand to 28 stores in 2016 and presently has17 stores across West Bengal, Delhi and Uttar Pradesh. The young duo is keen to collaborate with entrepreneurs focused on setting a scalable business and they already have an exclusive tie-up with PVR cinemas. The ice-cream brand has also introduced the franchise model where the cost of setting up the store would be Rs.25 to 30 lakhs. As part of its expansion drive the brand is vying for investments from fund houses and angel investors like Calcutta Angel Network (CAN), Indian Angel Network (IAN) and Mumbai Angels.
Coca Cola bottlers to set up new manufacturing lines in Haryana
Authorised franchise bottlers of Coca Cola, Kandhari Beverages and Enrich Agro Food Products will make an investment of Rs.510crore to set up new manufacturing lines. The agreement to increase their manufacturing line was signed with the State government during the ‘Happening Haryana Global Investors’ Summit-2016 in Gurgaon. This expansion is likely to generate additional employment for 325 people.
As part of the agreement Kandhari Beverages will invest Rs.300crore to set up a high speed juice, sparkling and energy drinks manufacturing line at Ambala by 2018. They will also enhance infrastructure in their bottling facilities. On the other hand Enrich Agro Food Products will set up new manufacturing lines at Rohtak with an investment of Rs.165crore and Rs.45crore will be invested in a Coca Cola packaging unit.
Baskin-Robbins tie up to sell Manpasand beverages
Ice-cream chain, Baskin Robbins and Manpasand Beverages have had a tie up to sell the latter’s beverages. Besides selling ice-cream at their outlets in India, Baskin Robbins will also offer Manpasand’s mango based ‘Mango Sip’ and ‘Fruits Up.’
This is a first tie-up of the biggest ice-cream brand with a fruit beverage company. Presently, Manpasand’s flagship brand ‘Mango Sip’ is sold in rural and semi-rural regions but with the tie –up the company will be able to reach the urban customer also. In the first phase, Baskin Robbins has tied up for 250 outlets and later the fruit beverages will be available across all Baskin Robbins outlets in India.
Food processing sector procures $385.45 million FDI till December 2015
Till December 2015 India was able to attract $385.45 million FDI in the food processing sector as compared to the $515.86 million for the previous fiscal.
According to the data shared by Minister of State for Food Processing Sadhvi Niranjan Jyoti in a written reply in Rajya Sabha, the food processing sector has attracted $5,285.66 million FDI from April 2012 to December 2015. To encourage the sector the Finance Minister has also announced100 per cent FDI in marketing of food and food products produced and manufactured in India in the current Union Budget. FDI will be allowed through FIPB route and this will give impetus to food processing industry as well as support farmers and generate employment.
Patanjali Ayurved to set up Food Park in Punjab
According to a statement made by Deputy Chief Minister, Sukhbir Singh Badal, Baba Ramdev’s FMCG, Patanjali Ayurved will set up a Food Park in Ludhiana. On the other hand ITC will be setting up a food processing unit in the state. The request had been made by Patanjali as the company is “impressed with the policy on industry in the state.” Since the Punjab government has announced a zero tax policy other companies like PepsiCo and Coca Cola have also shown an interest in setting up processing units.
Patanjali Ayurved is likely to lay down the foundation stone for the Food Park in April, 2016. The Punjab government is hoping to attract an investment of around one lakh rupees in the food processing sector this year. Multi-branding in food processing is bringing a lot of benefits to the state even though there are complaints about the government’s performance in the past nine years of SAD-BJP regime.