Here below the snapshot of business news this week
CII and CSIR-CFTRI to jointly Promote Agro and Food Processing Industry in Mysuru District
A MoU was recently signed by Confederation of Indian Industry (CII) and CSIR-CFTRI to create an environment that would promote all-around growth in agro and food processing industry in Mysuru district. The two organizations are committed to engaging in activities that will promote best agriculture practices and food processing here. They hope to achieve their goals by conducting awareness sessions, field visits, technical seminars, and workshops. An industry-institute initiate on the anvil is the setting up of an incubator facility for the development of value-added agri – produce and food processing.
Presently there is an atmosphere in the country that supports the development of agro-food processing. India’s GDP now stands at 7.5% and with agricultural growth at 8.5% and with RBI’s encouragement to industry to support agriculture sector, this symbiotic interface among the industry, government and research institutes in Mysuru have come at the appropriate time. Through optimal agricultural initiatives, positive regulatory environment and by providing a platform for domestic and overseas companies they could build strong links between the industry and the institute.
Pizza chain Chicago Crust seeks franchisees in India
The pizza market in India as anywhere else in the world constitutes half the fast food that is consumed as it is a favorite among consumers. In India, the pizza market is worth Rs.1500crore and is likely to grow at the rate of 27% in a couple of years. Seeing how well the pizza market is panning out, Chicago Crust, a QSR, which serves pizzas, pasta, garlic bread, soups, salads, desserts, and beverages, has decided to expand its base in India.
Chicago Crust has tied up with Franchise Bazar to expand their presence in India from 5 cities to 27 tier I and II cities through its Master Franchisees and Franchisees. FranchiseBazar.com is part of Sparkleminds, which is an integrated franchise development company. Sparkleminds has 15 years of franchise consulting experience in the Indian Subcontinent and it will help Chicago Crust to expand their franchise base according to their requirements.
Terminal ID at Delhi Airport now has Krispy Kreme
A whole lot of QSR and Café’s have a presence at Terminal 1D, New Delhi International Airport and among the new entrants are Krispy Kreme Doughnuts and 4700 BC Popcorn. Krispy Kreme will serve its signature glazed doughnuts such as Vanilla Cappuccino, Strawberry Shortcake, Éclair and a variety of beverages and 4700 BC will offer their differently flavored popcorns.
The outlet has been opened as a franchise by the largest F&B retail giant, Lite Bite Foods. Lite Bite Foods operates various other brands at the airports such as – Pizza Hut, KFC and has plans to start Burger King and Belgian Fries. With the addition of Krispy Kreme and 4700 BC to their portfolio of franchised brands at airport outlets, they hope to provide options to travelers, particularly to youngsters and children who like to have larger food choices.
Fast-food Chain Subway Aims for 2000 outlets by 2020
Subway has over 500 franchised stores in India and the fast-food chain has been doing well and so they are planning to expand their franchise network. A franchisee would require an investment of Rs.55-60 lakh for a standalone store while in a food court investment would be Rs.30-35lakhs. One of the biggest reasons for Subway’s growth is that the brand is now recognized by almost all middle-class Indians especially those who travel abroad as a healthy food option. The second reason is that in India they have catered to Indian tastes and have introduced ‘paneer tikka’, ‘chicken tandoori’ and ‘harabhara kebab’ on their menu.
The American brand also caters to Indian vegetarian requirements by opening two counters, one for vegetarian and the other for non-vegetarian in their stores. The fact that Subway prepares the sandwich in front of the customer has paid off as sandwiches are served cold and people can worry about them being hygienically prepared. Today Subway has 23 different sandwiches for Indians, whereas internationally they offer only 16 types.
Assam’s new Food Park Inaugurated at Nalbari
Tarun Gogoi, the Assam Chief Minister, Union Minister of State for Home, Kiren Rijiju and Harsimrat Kaur Badal, inaugurated the central government sanctioned food park at Nalbari in Assam. The food park will provide direct or indirect employment to 6000 people and almost 30,000 farmers are likely to benefit from it. The food park is likely to generate a turnover of Rs.450 to Rs.500crores.
The food park has been set up with an investment of Rs.76crore and would require an additional investment of Rs.250crores. There are likely to be 30 to 35 processing units in the park. The food park has a dry warehouse with 10,000 tonnes capacity, cold storages of 3,000 tonnes and common effluent treatment plant, and quality control laboratories.
No Buffer Stock for Millers Says Government
Millers owe sugarcane growers a hefty sum of Rs.21, 000crores. The millers have been demanding a buffer stock which could help them to clear their outstanding dues to crane growers. Food and Consumer Affairs Minister, Ram Vilas Paswan, has ruled out the demand of millers for the creation of a buffer stock of two million tonnes of sweeteners as the government does not see this as a long-term solution.
Paswan has described the outstanding dues as a complex problem and says that the government has done all it could. The government has hiked sugar import duty to 40% and has a subsidy of Rs.4, 000 per tonne for export of 1.4 million tonnes of raw sugar and has promoted ethanol blending. He says that the only role Central government has is to fix Fair and Remunerative Price (FRP) of sugarcane. It is only the states that have the power to take action against millers who do not pay the sugarcane growers.
Balrampur Chini Mills to Increase Capacity of Ethanol Production
The Balrampur Chini Mills is all set to make an investment of Rs.200crore to set up/ adopt Incineration Technology in their Balrampur, Babhnan and Mankapur Distillery Units. This will help them to increase the production capacity of RS/SDS/Ethanol. The increase in capacity is in compliance with the guidelines issued by the Central Pollution Control Board and the National Green Tribunal.
Balrampur Chini has 11 sugar factories in Uttar Pradesh and they have an aggregate crushing capacity of 79,000 tonnes per day. Despite this, in the fourth quarter that ended on 31 March, the company has seen a 60% decrease in its net profit because of higher expenses. With this increase in ethanol capacity, the company is hoping to recover some losses that it has seen through the fiscal 2014-15 even though it had made a net profit during the same period in 2013-14.