Snapshots of Food Industry News
Dhunseri Group to enter food space with Twelve Cupcakes takeover
Kolkata based Dhunseri Group is entering the food space and have acquired Singapore based Twelve Cupcakes. Twelve Cupcakes is a start-up run by local celebrity couple Daniel and Jamie Teo. Earlier Dhunseri had formed an equal joint venture partnership with Thailand’s Indorama Group for their PET plant venture, Micro Polypet Pvt Ltd. Dhunseri Group has interests in tea and petrochemicals and now wish to tap into the opportunity that the food space offers.
Twelve Cupcakes began their venture in 2011 and since have grown rapidly because they deliver only freshly baked cupcakes, which has helped it gain customers. Also, they use good quality gourmet ingredients and create cupcakes suited for the Asian palate. Twelve Cupcakes have 17 outlets in Singapore and Dhunseri Group wish to take it to 24 by this year. They also have plans to offer bigger cakes for occasions like weddings, birthdays, etc. and also more varieties of cookies, brownies, and desserts at their outlets. If their venture in Singapore succeeds they are likely to enter the food space in India too.
LT Foods aims to double revenue by 2020
LT Foods, the leading basmati rice firm, is aiming to double its present revenues to Rs.6, 000 crores by 2020. It is also examining the organic as well as the inorganic route to become an FMCG company. The major brands LT Foods is associated with are ‘Daawat’ and ‘Royal’ brands of basmati rice. These two brands alone have shown a growth of 20-25 percent in both the domestic and overseas market. Besides branded basmati rice the company also offers value-added staples and organic foods.
LT Foods has a presence in 65 countries. The company expects to see at least 60 percent of their growth coming from rice exports with the US as their biggest export market with a share of 45 to 50 percent. The company is also eyeing brand acquisition so that it can reach the target figures. They acquired the branded rice business of Hindustan Unilever last November as well as Gold Seal Indus Valley and Rozana brands. LT Foods also has a joint venture with Kameda Seika of Japan to manufacture rice based snacks for the Indian consumers.
NITI Aayog identifies food processing sector for intensifying growth
NITI Aayog has appraised the document for the 12th Five-year Plan where besides other things it has identified the food processor as a major sector for propelling growth. The food processing industry in India offers tremendous opportunities for value addition of India’s large agriculture and horticulture commodity-based industry. NITI Aayog has found that the food processing sector along with reforms in the Agriculture Produce Marketing Committees (APMCs) would help in achieving double-digit growth, while it felt that an eight percent growth was achievable.
NITI Aayog is working to bring in reforms for farmers also. It states that with ample processing units and lesser APMC restrictions, across the states, it will lead to facilitating both the food processing and agriculture sectors. The document also mentioned steps needed to focus on high-value commodities like horticulture, fisheries, livestock and especially the marine sector as it has several processing opportunities. A new development is the reduction of the Five-year plan to a three-year term which is needed to reformulate policies for short-term goals and to address any major issues.
Manpasand Beverages to double production capacity
Manpasand Beverages Ltd aims to double its production capacity in the coming 12-18 months. They will set up four new plants in different regions of India with a total production capacity of two lakh cases per day with each new plant having a capacity of 50,000 cases per day. Three new plants will be located in Sri City, (Andhra) Varanasi and Vadodara while the location for the fourth plant is being identified in eastern India. Manpasand has a strong reach in the semi-urban markets of the northern and western parts of India and the new plants will help it tap into markets in the south, east and north-eastern parts of India. Once the plants are operational it will not only increase the company revenues but also generate employment for a few hundred persons in these locations.
Since there is a huge demand for fruit juice the company has embarked on this expansion plan. The new manufacturing units will see the company meet the continual demands for its existing Mango Sip and Fruits Up. They will also be able to meet the production of any new beverage brands they introduce in the future. Through a QIP issue, the company has recently raised Rs. 500 crore and so are well placed to fund these four new plants. The company’s brands are available at Metro Cash & Carry, Havmor, Baskin-Robbins, Spar and other organized retail chains. With an increase in production, Manpasand aims to leverage a strong supply-led growth.
Report forecasts growth for food antioxidant market
The food antioxidant market is expected to grow at a CARG of 5.10 percent from 2017 onwards, to reach $1.48 billion by 2022. The growth is anticipated because of the increase in the purchasing power of the global population, application of use in prepared meat and poultry, beverages, fats and oils, bakery and confectionery and seafood. In 2015 the application of food antioxidants was the highest for prepared meat and poultry as they are used for preventing oxidative degradation in these products. Leading companies in this segment are E I Du Pont De Nemours and Company from the USA, German BASF SE and Archer Daniels Midland Company also from the USA, from India Camlin Fine Sciences Ltd is the leader.
The ever-expanding food and beverage industry and the presence of young demographics in the Asia-Pacific region have led to increased consumption of prepared foods. The Asia-Pacific region, therefore, accounted for the largest market share in the food antioxidants market in 2015. Countries contributing to this growth were China, India, Japan, Australia and New Zealand. Among type, it is the natural antioxidants segment that is projected to be the fastest growing especially in the USA and Europe. The reason for this is that there are safety issues associated with synthetic antioxidants and because of stringent government regulations with regard to labeling requirements for synthetic antioxidants.
Food Tech – NativeSpecial raises funds from Indian Angels Network
NativeSpecial, a Food-tech start-up, has raised an undisclosed amount of investment from Indian Angel Network and Madurai-based Native Angels Network. The funds will be used to upgrade their laboratory facility and expand into new markets. The company retails traditional snacks and sweets across India from their online portal. The three-year-old start-up currently has over 42 products with 20 vendors and run on the ‘stock-and-sale’ model. Clients include people looking for gifts, migrated population in metros, travelers going abroad and corporate clients.
The company offers traditional sweets without any preservatives or additions, with delivery across India. NativeSpecial feels they have a huge market among South Indian NRIs in the USA, as projected by sales in the last festive season. They aim to tap into this huge potential. They will effectively utilize technology to they serve only fresh and authentic traditional south Indian sweets and snacks. NativeSpecial is working to ensure that its vendors have FSSAI certifications. They will also set up an exclusive warehouse in Chennai to enable a hassle-free delivery model and this way revives the vanishing traditional cottage sector to boost the rural economy.
Master Chef Shipra Khanna launches her first restaurant in Delhi
Masterchef Shipra Khanna has launched her 1st restaurant called ‘The Darzi Bar and Kitchen’ in Delhi’s Connaught Place. The launch saw singer Jasbir Jassi put up a grand performance. Actor Chandrachur Singh, Shikha Swaroop, and Anupama Verma were other well-known faces at the launch. The restaurant brings in a completely new dining experience because it offers a selection of Indian fusion, progressive Indian and European cuisine which is tailored to improve the mood and give each customer a tailor-made selection. Tailoring food according to your likes and dislikes is a new concept and people are going to like it a lot.
Starbucks introduces tea brand Teavana in India
Starbucks the global coffeehouse has introduced Teavana brand of tea as a core offering in 88 stores in the country. They had nine teas on offer earlier but with the introduction of Teavana specialty teas that number will double. Starbucks wishes to attract new customers and so they are focusing on tea and see it as a “major business opportunity.” Starbucks has also announced several joint initiatives in the country along with its joint venture partner Tata Sons. They are looking to expand the Himalayan Mineral Water market and providing job skills training and Starbucks expertise in retail operations to over 3,000 youth. Tata Starbucks is likely to launch a mobile application this year that will target its loyalty programme customers.
Wow! Momo aims for Rs 500 crore turn-over
Fast food chain Wow! Momo is aiming for an Rs. 500 crore turnover in the next five years. There aggressive expansion plans of opening 500 outlets will see them achieve their target. Their long-term mission is to become a global brand as India’s version of McDonald’s. They have plans to export packaged frozen momos along with specially prepared momo sauces and make them available across shelves in modern trade. Wow! Momo is also raising fresh funds of Rs.50 crore which will fuel the expansion drive. They wish to expand rapidly in Kolkata, Delhi-NCR, and Bengaluru during this year, with perhaps a small expansion in Chennai. Next fiscal it hopes to enter Hyderabad and Mumbai.
People and Placements
Coca-Cola India has new Franchise Head
Coca-Cola India has announced a new organizational structure with Shenaz Gill as Franchise Head for all 14 bottling plants operating in India. Gill has been with Coca-Cola for 12 years and will take over the new role of Senior Vice-President Operations for the whole of India. This move has also been made keeping in mind the implementation of the GST that will convert the entire country into a single national market.
Muthar Basha to head Consumer Business at Prabhat Dairy
Prabhat Dairy has appointed Muthar Basha to head its consumer business. Basha has 25 years of sales and customer marketing business. He was executive with Hindustan Unilever and Britannia and head of sales at Global Consumer Products Limited which is backed by Goldman Sachs of US and Mitsui of Japan. At Britannia, he delivered an outstanding top line and bottom line growth.