Snapshots of Food Industry News
Amul Sales for FY17 jump to Rs.27, 043 crores
In FY 17 Amul with a turnover of Rs.27, 043 crores have shown a jump of 17.5 percent as compared to the previous year. While this is a good jump for the Gujarat Cooperative Milk Marketing federation (GCMMF) owned brand, it is less than the jump of 67 percent in fiscal 2015. Overall since 2010 Amul has increased their turnover 3.5 times from Rs.8005 to Rs.27, 043 crores in 2017. In these past seven years the cooperative has shown a quantum growth of about 238 percent which means the CARG has stood at 19 percent during this period. In these past seven years they have also been able to increase farmer incomes fourfold, incentivising them to increase milk production.
Amul has said that the increase in turnover can be attributed to the expansion the company has carried out in its procurement, processing and distribution network.
In the coming year Amul expects to continue to expand its milk procurement, increase its manufacturing facilities, marketing and distribution networks. Amul’s aim is to achieve a business turnover of around Rs.50, 000 by 2021. The largest cooperative in India stands at 13th position in the world but has ambitions to become number one in the world. Amul’s new plants in Taloja (Maharashtra) Kolkata, Surendranagar and Ahmedabad are being constructed with the aim to increase the production capacity. On the anvil is an increase in milk powder manufacturing with expansion capacity in Gandhinagar and new plant in Himmatnagar and paneer and chocolate production.
Andhra based Heritage Foods enters Punjab
Dairy product maker Heritage Foods has entered Punjab after acquiring the dairy business of Reliance Retail and its brands ‘Dairy life’ and ‘Dairy Pure’. Reliance Retail had a dairy business that covered Delhi Punjab Haryana, Rajasthan and Himachal Pradesh. After the acquisition Heritage Foods has access to another 200,000 litres of milk per day and a presence in 15 states in the country and now handles more than 1.4million tonnes of milk. Heritage foods will work towards having the same success in the north as it has had in the south and so they will procure milk from local farmers and establish processing centres near consumers.
Out of the 2 lakh litres of milk more than 20 percent comes from Punjab and so Heritage Foods plans to grow the two acquired brands here. The company already has a major production unit in Rai, Sonepat in Haryana and has started to acquire milk processing units in Punjab and will use Reliance’s existing retail and wholesale channels to distribute and sell its products in Amritsar, Ludhiana, Jalandhar, Bhatinda and Patiala. It will offer high quality products in these cities which include milk, flavoured milk, curd, butter, ghee and dairy whitener.
Wegan Foods raises funds from RAK’s Sheikha Arwa Al Qassimi
The Mumbai-based food start-up Wegan Foods has been able to raise an undisclosed amount of funding from Sheikha Arwa Al Qassimi, a member of the royal family of Sharjah and Ras Al Khaimah in the United Arab Emirates (UAE). The funds will be used to launch a range of healthy, dairy-free, pantry staples for the growing vegan community in India as there is a gap in the availability of vegan staples in India. The brand has stated that they would like to be a transparent and ethical and have plans to source only the highest quality ingredients. They intend to create their products in ‘happy kitchens’ and not in labs or factories. Almost 90 percent of the workforce will comprise women who will be hired from organisations that groom disadvantaged women to empower them.
Kinjal Darukhanawala is the founder and chief executive officer of Wegan Foods. She has stated that they intend to offer delicious dairy free products as there is a growing market for these. For instance people will have a healthier lifestyle but will at the same time be able to enjoy pastas, pizzas, nachos, grilled cheese sandwiches and burgers with their non-dairy cheese which is nutritious but cheesy and gooey too just like regular dairy cheese. They will continue to develop more products that are equally delicious and suitable for vegans, Jains and lactose intolerant people. The products will initially be launched in Mumbai via modern trade and specific delivery platforms. The company also intends to set up a network for supplying to restaurants, hotels, catering companies, coffee shop chains and airlines.
Chili’s plans to expand footprint in South and West India
Casual dining chain Chili’s American Grill and Bar plans to invest Rs.20 crore to expand their footprint in South and West India. Chili’s already operates 18 restaurants in Mumbai, Bangalore, Hyderabad, Pune and Chennai and now plan to add 5 more Chili’s restaurants this year in Ahmedabad, Indore, Goa, Mangalore, Vizag and Coimbatore to name a few. They opened their first restaurant in Powai Mumbai which met with resounding success. They offer their customers great food and a valuable experience which translates to location, quality, quantity, ambiance and a good feedback mechanism.
Amul to provide technical expertise to Parag milk brand
Speaking at a meeting on milk development and dairy farming the UP Chief Minister, Yogi Adityanath has said that an expansion of the state’s milk brand Parag can bring prosperity to farmers as it will help increase their incomes. Amul has already installed more units in UP and this is helping farmers become self-reliant as they get better returns for their produce. He was not hesitant in eliciting support from Amul for helping them develop the Parag brand.
Parag is likely to increase the capacity of its existing plants. People are willing to pay more if milk is available from good dairy processing plants. This would also spell death for milk adulteration. The state is studying the possibility of setting up more processing plants in Gorakhpur and surrounding areas. RS Sodhi Managing Director, Amul Dairy acknowledged that UP is the biggest milk producing state of the country and produces double the milk than in Gujarat. He also hinted that Amul could provide training and exposure to Parag in all fields including processing and marketing.
Manpasand Beverages recommends dividend of Rs.1 per share
Manpasand Beverages Ltd. has reported a 43.85 per cent rise in net profit at Rs. 72.63 crore for the financial year ended March 2017 as against net profit of Rs. 50.49 crore in the corresponding period last year. In the quarter ended March 2017 they have shown an increase of more than 22 percent at Rs.31.33 crore as against a net profit of Rs.25.59 crore in the corresponding period last year. Total income for the FY16-17 was Rs.735.02 crore as compared to Rs.541.14 crore in the previous fiscal. The company has recommended a dividend of Rs.1 per share which is 10 per cent on the face value of Rs.10 per share.
The beverage company has stated that they have had a remarkable financial year. They are also happy about beginning work on four new manufacturing units simultaneously. This would help the company to double its production capacity in the next 12 to 18 months. The company has entered new markets in the south. In the coming year health conscious consumers can expect new and innovative product.