Food Industry News
Charoen Pokphand (CP) Group of Thailand to Set up New Facilities in India
The Thailand based CP Foods is all set to invest $500 million in India to expand its farm, feed and quick service restaurant business in India. They will set up an additional four poultry feed manufacturing plants to increase their capacity. The company, better known by the quick service chain Five Star Chicken run by CP Foods India, will invest 30% to 40% from their own funds while the rest of the funds will come from bank loans.
Poultry consumption is growing at the rate of 10% in India and since 2012, when Five Star Chicken was established here, it has seen sales grow and now expects to have a turnover of Rs.500crores. They will also introduce packaged foods, and shrimp based foods in their restaurants in the coming years. Five Star Chicken is the third largest poultry producer in India and with an addition to their already existing manufacturing units they will be able to cater to all regions in India.
Devyani Foods Eyeing to Capture more of the Ice-cream Market
Presently Devyani Food Industries has 15% market share of ice-creams in India. However, the company is all set to take its ice-cream band, Creambell, to all regions of the country which could increase their share of the market to 18% by 2020. They will be making investments of Rs.275 crores to execute the expansion plans for Creambell.
Presently the Indian ice-cream market is estimated to be Rs.3, 500 crore and among Indian states Gujarat has the largest ice-cream market and Devyani Foods is all set to tap into this market. The main competitors for Devyani Foods are Amul, Mother Dairy, Kwality Walls and Vadilal. Presently Creambell has three manufacturing plants in Baddi (HP), Goa and Kosi Kalan (UP). The company is also expanding into many African countries.
Mother Dairy Introduces ‘Dailycious’ Dairy Whitener and other Products
Mother Dairy launched its daily milk whitener ‘Dailycious’ recently and it aims to capture 5% of this market which is dominated by Amul’s ‘Amulya’ and Nestlé’s ‘Everyday’. The already established Safal distribution centres will be used to distribute the dairy whitener also, since they are already distributing milk shakes, lassi and UHT milk. ‘Dailycious’ is being manufactured at their new plant in Etawah in Uttar Pradesh and so initially it will be launched mainly in eastern India. The company has also introduced new dairy beverages like lassi, milk shakes and butter milk. These are all ambient dairy products and have a shelf life of 4 to 9 months and do not require a cold chain system and can be easily stored in groceries.
Mother Dairy is a wholly-owned subsidiary of the National Dairy Development Board. Last Financial year Mother Dairy had a turnover of Rs.6300 crores and this year Mother Dairy hopes to reach Rs.7000 crores. About 80% of their revenue comes from milk and other dairy products and the rest from fruits and vegetables. They also make ‘Dhara’ vegetable oils.
Start up Indulge Beverages manages to Garner $2 million
Indulge Beverages is an upcoming start-up founded by Kunal Bhagat (ex-investment banker). Under the brand name Bonhomia they have launched premium Indian origin tea and coffee capsules which are compatible with Nespresso coffee machines. Using capsules in Nespresso machines is an emerging consumer trend that Indulge Beverages feels will bring about a beverage revolution. The company was launched six months back and already they have increased the capsule capacity from one million to 20 million capsules.
The company has managed to get funding from Salarpuria Group, Pennywise Solutions Pvt. Ltd – Serial Angel Investor, Ramrod Advisors LLP, to name a few, as well as some distinguished individuals. Indulge Beverages has managed to procure $2 million from these investors that will help it expand. Since consumers are looking for lifestyle brands with good taste and convenience, Bonhomia, has the potential to become a global brand that could take several Indian tea flavours to the world stage as they are well equipped to reach spaces in both B2B and B2C markets.
Vegetables to Become more Expensive
An ASSOCHAM-Skymet Weather joint study has revealed that unseasonal rains have ruined the Rabi crop that was ready for harvesting like wheat, oilseeds, pulses including ‘channa’ besides vegetables and fruits. Among vegetables tomatoes, cauliflower and coriander have suffered the worst damage. The most affected fruits are mangoes, bananas and grapes. As per government estimates, country’s food grain production is expected to decline by 3.2 per cent.
The rain has also brought down temperatures and this could have further impact on the crops and prices of vegetables are likely to go up by 20-25 percent. The unprecedented rains will also increase the threat from pests making a bad situation worse and farmers are likely to face economic losses. Punjab, Haryana and Delhi have had the worst damage to crops like wheat, mustard potato and gram.