Snapshots of Food Industry News
Patanjali Ayurved Plans to Invest Rs.5, 000 Crore this Fiscal
Patanjali Ayurved is planning to invest a whopping Rs.5, 000 crores in the country in the present financial year. They are exploring all possibilities to set up units in Maharashtra, Madhya Pradesh, Jammu and Kashmir, Uttar Pradesh, Rajasthan and Andhra Pradesh as well as the North-east. The new processing unit the company has established at Pithampur industrial area in Dhar district is likely to begin production by March 2018. This plant will produce biscuits, noodles, flour, and suji. The company is also looking at the possibilities of processing fruits and vegetables in Madhya Pradesh where they have been allocated land of 40 acres at the rate of Rs.25 lakh an acre.
GS Farm Taaza Raises Rs.52 crore for Technology Investment
E-commerce start-up GS Farm Taaza Produce Ltd has raised Rs.52 crore in the first round of funding which they are likely to invest in upgrading technology. The B2B enterprise is in the business of fresh fruits and vegetables. They commenced their operations in August 2015 with an unspecified amount of seed funding obtained from unnamed Angel Investors from Silicon Valley. Presently Farm Taaza has raised investment from Hong Kong-based Epsilon Venture Partners, Tara India Fund IV, managed by IL&FS Investment Managers Ltd which will be used to scale up business by investing in their online platform.
Farm Taaza has operational centers at Bengaluru, Chennai and Hyderabad and collection centers at Chikkaballaupra in Karnataka and Ooty, Krishnagiri, Olakoor, and Mettupalayam in Tamil Nadu. Farm Taaza has a tie-up with modern retail, traditional Kirana stores and HoRaCa (hotels, restaurants, and catering) for supplying farm product in the B2C segment through the year. The company wants to enable a seamless supply chain from farm to store. With the new funding, they intend to spruce up their use of technology like intelligence and data analytics for quick decision-making so that they can run an efficient agro-food system. There are about 1,400 farmers in two southern states that are associated with the start-up to supply 150 varieties of fruits and vegetables.
Kellogg to Buy RXBAR for $600 Million
In a bid to expand its business Kellogg Co is planning to buy RXBAR protein bars for $600 million. The world’s largest cereal maker, like others in the processed food market, have been battling weak sales as millennial consumers prefer healthier foods and Kellogg means to tap into that market. The company has also been making changes to its portfolio offerings as it has removed some artificial ingredients and introduced healthier foods such as granola. Kellogg is buying RXBAR because it is well positioned to perform well against future food trends. It also has a diversified channel presence including e-commerce and most important is that it has a strong millennial consumption. The Chicago Bar Co. owned RXBAR will continue to operate independently after the deal. RXBAR’s net sales are expected to be about $120 million in 2017.
Mondelez India Announce Online Sale of Cadbury Chocolate Range
Cadbury milk chocolate maker, Mondelez India, has announced a direct sale of chocolates through their website www.cadburygifting.in. Mondelez has a highly popular portfolio of chocolates and intends to increase its online presence as this will be an additional channel for consumers to connect with the brand. Earlier this year Mondelez forged a partnership with e-commerce giant Amazon to sell their chocolates and sweets through the online platform. This was a move in keeping with the company’s focus to make investments in strategic associations that will develop class sales and which have strong market and distribution capabilities.
The online sales will cover its entire range of chocolate products but the company is likely to concentrate on the gifting section. They will use the opportunity to tap into the corporate gifting section. Mondelez is geared up to leverage the platform this festive season and is likely to provide an enhanced experience through online discounts and customized bulk orders. It also intends to provide free shipping for any bulk order above Rs.299 and multiple location deliveries. For deliveries, it is partnering with third parties like Olympia Industries Ltd.
Badal: Food Processing Industry Likely to Receive 10 Million Dollars FDI
Union Minister, Harsimrat Kaur Badal has stated that in the next two to three years the food processing industry is likely to attract investment of at least $10 million on the back of reforms initiated by the Government of India. The Minister was speaking on the sidelines of the India Economic Summit organized by the World Economic Forum in partnership with CII. She also stated that FDI in the food processing sector has risen by 40 percent since last year.
The Minister also spoke about the upcoming ‘World Food India’ which is slated to take place between 3 and 5 November 2017. Badal is optimistic about investments coming in after ‘World Food India’ as the government has been creating infrastructure in the past three years and have also created an environment for investment by bringing out appropriate policies and programmes. She also pointed to the fact that India is ripe for joint ventures as it has the raw materials and the ready-made consumer base companies are looking for when targeting new markets.