
Snapshots of Food Industry News
Amul brand plans for a turnover of Rs.50, 000 crores by 2020
Owned by Gujarat Cooperative Milk Marketing Federation (GCMMF), the Amul brand is eyeing a turnover of Rs.50, 000 crores by 2020. In the fiscal 2015-16 they reflected a turnover of Rs.23.005 crores. Amul is a dairy major and besides marketing milk has a portfolio of popular value added products. The constant demand for Amul products has seen them grow by 11 percent this fiscal. If Amul continues to add value to its products the demand is likely to grow by around 20 percent in the coming four years.
Around 50 percent of Amul sales come from milk, their commodity business brings in another 5 to 7 percent and the rest of the sales come from value added products. Value added products have shown tremendous growth especially products like ‘Amul Kool’, fermented products like curd and butter milk. Amul has also raised its cheese production capacity to 120 tonnes per day from 40 tonnes per day as there is a rising demand for cheese. The cooperative has about 60 processing plants already and they mean to also increase milk processing which at present is 281 lakh litres per day.
UK investors can be attracted with reforms in food sector says a report
According to a report ‘India-UK collaborations and investments in food supply chain’, prepared by Dun & Bradstreet Tangram, UK companies could invest in India provided there are some policy and regulatory changes. They would like to have FDI in multi-brand retail without all the strict conditions and would like those removed quickly. Other important reforms the Indian government needs to act on urgently are implementation of GST, right compensation for land acquisition and green channelling for quick conveyance of agricultural produce. These changes in policy can bring about India and UK collaborations in food supply sector which has many untapped opportunities.
GST will not only create a unified market across India but will give an edge to manufacturing as it will cut down on high logistic costs. To speed up the movement of trucks carrying agricultural products the government needs to have ‘green channels’ on national highways and economic corridors. The report has focused on five areas of the food supply chain — storage and warehousing, cold-chains, packaging technology, skill development and R&D. The report has also identified areas of collaboration and barriers that UK companies could face in India.
Eagle Boy Australian Pizza brand plans high scale expansion in India
Australian pizza brand, Eagle Boy has plans to increase their network of outlets by 300 in the coming three to four years in over 50 cities in India. Presently they have just 18 stores in cities like Mumbai, Pune, Kolkata, Chennai and Hyderabad. By year end they will be able to add another 50 stores. However, in Australia they have just 200 stores. With the expansion in their outlets, the pizza brand expects to generate sales of around Rs.150 crores.
AB InBev to focus on beer acquisitions rather than beverage expansion
Analysts and investors say that AB InBev, the world’s largest brewer, is likely to focus on beer acquisitions instead of branching out into other beverages. They are on the verge of buying rival SABMiller for $100 billion-plus. AB InBev, which makes Budweiser, Stella Artois and Corona are also looking at liquor company, Diageo and Castel which is an unlisted French wine and beer group with a large presence in Africa. Acquisitions have been the norm for the company since it created InBev in 2004 and then purchased Anheuser-Busch in 2008, Mexico’s Modelo was acquired in 2012-2013 and now SABMiller.
Analysts have also pointed to the fact that AB InBev is likely to provide a six million share option plan for some 65 senior managers, below the executive board. This however, can only be granted if the company’s revenues hit $100 billion earliest by 2020 or at least by 2022. AB InBev’s revenue last year was $43.6 billion and with SABMiller it could reach $55-60 billion and so they need almost 70 to 80 percent hike by 2022. The way AB InBev has planned to take this giant leap is through acquisitions as it’s not possible through beverage expansion
daniel Jogal says
GST will cut cut down the cost of logistics. WHO WILL INITIATIVE.?