Snapshots of Food Industry News
Ruchi Soya to Bring Japan’s Edible Oils to India in 2016
Ruchi Soya Industries will introduce Soybean Germ Oil in India with the help of Japan’s edible oil major J-Oil Mills and global trading firm Toyota Tsusho Corporation. The joint venture will not only expand the portfolio of the company but will be a healthy product option for Indians as Soya Germ Oil is one of the healthiest edible oils with zero cholesterol absorption. While Ruchi Soya Industries will have 51 per cent stake J-Oil will have 26 per cent and TTC 23 per cent stake in the joint venture. Ruchi Soya is to provide the raw material, marketing and distribution for the product J-Oil will help with technical solutions and TTC will provide management solutions and help to access more international markets.
Through its tie-up with Protein Foods and Nutrition Development Association of India (PFNDAI) Ruchi Soya Industries is also implementing a nutrition outreach programme in Karnataka and Maharashtra. The aim of the programme is to educate children about the nutrition and goodness of soya over milk, egg and meat. They will educate the children through tastings and competitions with the help of their School Contact Programme in which 400 schools in Karnataka and 3,000 schools in Maharashtra will be targeted.
Snack-food Retail Chain Jumbo King plans Expansions
Jumboking has chalked out huge expansion plans in India and hope to open about 200 more outlets across the country. They hope to expand into Ahmedabad, Vadodara, Rajkot, Surat in Gujarat, Indore and Bhopal in Madhya Pradesh and Hyderabad and Vizag in Andhra Pradesh. The company is now a national brand in the food industry even though it began with non-traditional vada pav market. Presently they have 65 outlets and the addition will see them venturing out into tier II and tier III cities where their USP will be to provide hygienic outlets which these cities lack.
They have also appointed area developers in Maharashtra, Rajasthan, Goa and Karnataka. Next up is Gujarat, Madhya Pradesh, Delhi and Andhra Pradesh. Their expansion plans include a capital of Rs.30 crore per area where they make clusters for entrepreneurs within these states. They also offer franchising as they feel that food franchises can gain momentum unlike other retail sectors. Presently they are in talks with railways for putting up its stalls on 300 railway stations. They already have a presence in 200 bus depots of the Maharashtra transport. They are also looking for overseas expansion as a joint venture.
Export of Spices Rises by 30 Per cent
Good News for the Food Industry as Spice Exports have risen up by 30%. Volume wise the increase might be marginal but in terms of value, spice exports have registered a rise of 30% in the first quarter of the financial year 2015-16. Spice exports have reached Rs.3, 976.65 crore as compared to Rs.3, 059.74 crore in the same period the previous fiscal. Already in the first quarter 28% of the export target has been met for FY2016. The credit for the increase in exports goes to the Spice Board which has been actively promoting Indian Spices globally. Garlic, pepper, small cardamom, fenugreek, nutmeg, fennel, mint products like mint oils, menthol and menthol crystals and other spice oils and oleoresins contributed substantially to spice export.
However, India could face a challenge from other South Asian countries as the prices of Indian spices are higher as compared to other emerging destinations in the region. This is also the reason why the volumes have not yet reached to where the Spice Board expected them to be. Another area of concern is productivity with China and Vietnam concentrating on more spice production. Another reason for the low volumes is the economic crisis in Europe which imports a major chunk of spices from India.
Lack of Regulations and Infrastructure Affecting Food Parks in Karnataka
The four foods parks in Karnataka are facing a crisis as both the State and Central Governments have failed to put in place a regulatory mechanism. Experts have pointed out that the four parks Innova Agri Bio Park, Akshay Food Park, Green Food Park and Jewargi Agro Food Park are underutilised as no one is making use of infrastructure inside the parks like cold storage, warehousing and common effluent treatment plants. Moreover, those inside the park are exploiting farmers in the absence of food processing industry. These food parks are likely to face further neglect with the establishment of the Mega Food Park Scheme and the setting up of the first India Food Park promoted by the Future Group in the state at Sira in Tumkur district in Karnataka.
While crores of investment has been pumped into these state food parks with the aim of facilitating medium food processers to convert to value-added products there is no take-off on ground. Moreover, key agencies like KIABD and KAPPEC have not recognised them as they have proven to be unviable for driving agricultural growth. The size of the food supply chain is estimated to be over Rs.25 lakh crore but the actual amount reflected is a small Rs1.14 lakh crore. With these food parks being handed over to National Mission on Food Processing grants are no longer forthcoming. Moreover with the shift of the Food Karnataka Limited, a nodal agency, to agriculture ministry has come as a further blow as the Agricultural ministry is incompetent to handle food processing industry. Government will have to clear a lot of hurdles if the potential of these food parks is to be realised.
Nestle cancels manufacturing contract of Maggi with SAJ Food Products
Nestle India has ended its 12 year contract with Kolkata based and FSSAI certified SAJ Food Products. Besides manufacturing biscuit brand Bisk Farm the company manufactured 12,000 tonnes of Maggi noodles a year which was 6% of the volume of Maggie noodles in a year. The fact that the contract has ended is being seen as an indication that Nestle will no longer outsource Maggi production to third parties. The company in its statement said that the contract with SAJ Foods production has been cancelled after a review of its overall capacity.
Market analyst however are viewing the move as a step that will ensure better quality of Maggie noodles especially after a ban was imposed in June this year by FSSAI following food safety concerns. Nestle has also pointed out that it has expanded its own capacity in Nanjangud and Tahliwal to reduce dependence on third parties. Nestle India say that since they have begun utilising their own manufacturing facilities with enhanced production capacity the need for continuing the contract with SAJ Foods was redundant. SAJ Food Products will however continue ties with Nestle India in the role of distributor.
Jano Cabrera Appointed as McDonald’s Corporate Senior Vice President
McDonald’s is the world’s leading global foodservice retailer that serves food to approximately 69 million customers in over 100 countries daily. To maintain their position and to lead the company forward and strengthen the brand McDonald’s Corporation has named Jano Cabrera, 41, as Corporate Senior Vice President of U.S. communications, Global Media and Public Relations, effective from Oct. 15. Cabrera has a lot of experience in advising Fortune 500 companies and has also held several senior communication positions on presidential campaigns, the White House and in the U.S. Congress. The role of the Vice President has been expanded and he will work under Robert Gibbs, Global Chief Communications Officer and Executive Vice President.