Prabhat Dairy Ties up with Danish Company for Animal Nutrition
Prabhat Dairy of Mumbai is all set to enter the animal nutrition business with cattle feed, nutrition supplements, and animal genetics. They have signed a joint development agreement with Denmark based DLG which supplies high-quality vitamin-mineral feed for livestock. Prabhat Dairy already supplies dairy farmers with cattle feed under the brand Annapurna. However, seeing the boom in the animal nutrition market, the city-based company would like to leverage their expertise to launch a separate animal nutrition business with diverse animal products.
As part of the agreement with DLG two products developed in Denmark will be brought to India for a pilot. One of the products is for milching cows while the other is for dry cows. These products will be given to the selected 150 farmers for 1000 cows so as to improve their health and increase the milk quality and productivity. This pilot will be tried for four to six months after which there would be a commercial launch.
Mother Dairy Enters Organic Food Market
Leading milk supplier, Mother Dairy has entered the organic food business with Safal Organic. To start with, Safal Organic will offer fresh organic fruit and vegetables sourced from about 500 farmers with certified organic farms across India from states like Maharashtra, Himachal Pradesh, Sikkim, Madhya Pradesh, and Uttarakhand. The new range of products labeled as ‘Safal Organic’ will be available in select 100 Safal booths across Delhi-NCR. Safal has set up a facility to handle organic produce at Mangolpuri in the national capital to ensure a distinguished supply chain as mandated in the regulations. The capacity of the newly established organic facility is around 15 tonnes/day.
Going organic is not only a strategy to diversify but Mother Dairy will also target revenue of ₹50 crore next fiscal and ₹100 crore in 2020-21 from the organic market. Going forward, the company plans to expand Safal Organic range by adding honey, rock salt and more varieties of whole spices and pulses. A wide range of organic kitchen ingredients namely pulses, rice, spices, millets, dry fruits, wheat flour, besan, sugar, salt and flattened rice flakes (poha), are also being introduced. Safal’s organic products are in compliance with the National Programme for Organic Production (NPOP), under the central government, and it also conforms to the ‘Jaivik Bharat’ initiative of FSSAI. As part of its agronomic interventions, Mother Dairy is also advising and helping farmers in growing organic produce.
Grofers Eyes Rs. 17,500 Crore in Revenue by 2020
Grofers is aiming for revenues of Rs 17,500 crore by 2020 through scaling up private label offerings and expanding repeat purchases on its platform. The company has been witnessing over 30 percent month-on-month growth. As part of its expansion strategy, 40 percent of the selection on its platform now comprises private label products. Placing private labels on its platform has helped the company provide aspirational products like muesli, peanut butter at more affordable prices. Private labeled products are also available on Grofers’ 1,500 partner stores, which the company aims to ramp up to one million in the next two years.
Grocery segment accounts for a significant portion of the unorganized retail segment in the country. However, with people becoming comfortable buying even milk and bread online, the online grocery segment is projected to witness strong growth over the next few years in India. Grofers is aware that consumers are very conscious when it comes to grocery buying and they ensure customers get the products they want at affordable prices.
Yellow Tie Hospitality to bring Chachago to India
Yellow Tie Hospitality, the leading food, and beverage franchise management company, has tied up with Taiwan based beverage brand, Chachago to launch its first outlet in Bengaluru in January 2019. This is for the first time that the brand is entering India and Yellow Tie has acquired the master franchise rights for the brand in India as well as for some other Middle Eastern and South Asian countries. The company plans to launch100 outlets in India by 2021, with an overall investment of USD 6 million in brand expansion and development in India.
Chachago is a brand known for its aromatic and delicious varieties of Taiwanese milk tea, bubble teas, fruit-infused beverage, cheese-based beverages, milkshakes, and other specialty beverages and desserts. Yellow Tie Hospitality feels that Indian consumers would connect with these specialty beverages, as there is a high demand for them in a tropical country like India. It is a well-known fact that specialty beverages are a large and growing segment in the QSR category and the company understands this. A typical Chachago outlet will be in malls, high street, and educational institutions, and will spread over an area of 100 to 500 square feet and a capex of INR 20-40 lakh will be invested in building each outlet. To streamline the franchising process for Chachago, the company will go through a master franchise and multi-unit franchise route and franchisee selection criteria will be based as per International brand standards where the potential franchisee’s credibility will be audited by Yellow Tie Hospitality.
NAFED to Sell Organic Foods Through E-Commerce Sites
National Agricultural Cooperative Marketing Federation of India Ltd (NAFED) has launched plans to sell organic food products via e-commerce sites at reasonable prices. The plan is being implemented under PMKVY (the Pradhan Mantri Krishi Vikas Yojana), under which farmers have been directed to form farmer producer organizations (FPOs) and have also been provided the requisite aid and assistance. The Indian domestic food market is forecast to grow at about 25% over the next five years and NAFED, therefore, aims to sell the organic products of its associates, particularly the smaller farmers.
According to the new Organic Food Regulations, foods claiming to be organic must comply with either of the three programmes – NPOP (the National Programme for Organic Production), PGS (the Participatory Guarantee System for India) or any other system notified by the country’s apex food regulator. Sikkim has been declared India’s first fully-organic state, the Governments of Himachal Pradesh and Uttarakhand, as well as those of bigger states like Madhya Pradesh and Maharashtra, are also laying emphasis on organic farm practices.