Snapshots of Food Industry News
Manpasand Beverages to get four new plants
Fruit juice manufacturer, Manpasand Beverages is planning to double its production capacity. Since there has been a significant demand for fruit juices the company will set up four new plants in the coming 18 months. The company says that there are still untapped segments in India and the demand for fruit juice is only growing. Manpasand commissioned two new plants last year but have been unable to meet the demand of their existing market and so have been unable to tap into newer areas.
Presently, Manpasand Beverages has a capacity of 1.7 lakh cases per day. They want to double the capacity in the next 18 months and so they are setting up the four plants in different areas of the country including South India. The company has been able to raise Rs.500 crore through qualified institutional placement. Manpasand operates five plants presently- two in Vadodara, and one each in Varanasi, Ambala and Dehra Dun. They feel that demonetization will not have an impact on them as their products are affordable and they intend to focus on smaller packs that sell at Rs.5 and Rs.10.
LT foods enter a joint venture with Japanese snack manufacturer
Makers of branded Daawat rice, LT Foods, and Japanese snack maker, Kameda Seika will jointly invest $10 million to sell rice based snacks in India. The joint venture will enable LT Foods to place a new category of snacks in the market which is presently dominated by PepsiCo’s Lays brand. The 51:49 joint venture will leverage LT Foods distribution and logistics network while Kameda has propriety over the manufacture of rice-based snacks. This will give LT a chance to scale up business with this value-added rice category as Kameda is a global leader in rice-based snacks, well-known for their rice crackers. Kameda Seika will tap into high potential markets that are looking for healthier snack options. It is for this reason that they aim to keep away from entry-level price but will compete in high margin points and place their products in Sec A and B markets. Kameda are optimistic about their success, as India has over one billion consumers that display a natural bent for snacking.
Amul to increase exports to the US with Amazon
The new partnership between global e-commerce giant Amazon and dairy giant Amul will now enable Amazon to ship Amul products to the US. Under its Global Selling programme, Amazon will first offer Amul ghee and gulab-jamun to consumers in the US and would increase the range to include products like butter and cheese at a later stage. This will enable Amul to increase exports. Amul has been exporting their products to the US for the last 20 years but mostly to local stores that have large pockets of the Indian population. The partnership with Amazon will make available Amul products to over 30 lakh Indians living in every nook and corner of the USA. Amul exports products worth Rs.30 to 35 crore to the US and the move will enable them to increase their exports by another 1-2 percent.
Dr. Oetker eyeing sales of Rs1000crore by 2020
German packaged food company; Dr. Oetker is aiming to grow its sales by three-fold to take it to Rs.1000 crore by 2020. The company entered India in 2007 when it acquired Fun Foods, which was the market leader for mayonnaise, sandwich spreads, and pasta sauces. Dr. Oetker now plans to launch new products like muesli and expand its network from the present 40,000 stores to one lakh stores to achieve its target growth. The company also expects that exports will contribute around 20 percent towards its business. Mayonnaise, they say will become a Rs.1000 crore market in India by 2020 and they expect their Fun Foods to expand into a Rs.500 crore company.
The company is setting up a state-of-the-art manufacturing facility in Rajasthan which will have a capacity of 5,000 tonnes. They will ship products from this plant to SAARC countries as well as Germany besides making them available in India. Besides variants in mayonnaise, pasta sauces, and peanut butter, Dr. Oetker is planning to launch new products like frozen pizza and some bakery segments that are popular in other countries. The mayonnaise consumers have grown from 4 million to 9 million in two years and they will promote newer products so consumers develop a taste for them. Dr. Oetker is a 12 billion Euro company that has a presence in 50 countries.
Nascens Enterprises tie-up with retail giant Metro Cash & Carry
Planta Speciality Tea and Herbalist wellness product makers, Nascent Enterprises has tied up the German retail giant Metro Cash & Carry. This move will enable them to tap into the wholesale grocery and gourmet business category. Nascens Enterprises operates in the specialty tea and wellness segment in India which has grown at a CAGR of over 20 percent over the past three years. Metro is a leading Cash and Carry wholesale retailer in the country and will give provide Nascens the ability to reach even the smaller retailers that are on the Metro customer database.
The tie-up with an international retail brand in India like Metro will facilitate deeper penetration of Planta Tea and Herbalist wellness products. Some Herbalist products will be available at Metro immediately. Nascens’ hope to deepen this partnership and so will offer their future range of products too. Nascens believe that with exponential growth in wholesale retail in India, Metro will be able to expand their growth in existing and newer markets. Owing to changing lifestyle, rising per capita income and health consciousness, the wellness product market in India is seeing a surge.
Delhi based Tpot Café gets pre-series A funding
Tpot Café, a specialist in chai-nashta has announced that they have closed their pre-series A funding. With the new funding, Tpot plans to expand its presence with 19 more outlets by year-end. By March 2018 they aim to have around 200 outlets all over India. Since Tpot has found its niche in the corporate sector like MakeMyTrip, Goibibo, BPTP Park Centra, World Trade Tower and so it intends to expand further in this space, besides penetrating into metro stations and hospitals. Presently Tpot has 21 outlets in Delhi-NCR and intends to be highly accessible to customers. The company has revenues of Rs.6 crore currently which it intends to double by March 2017. After opening their new outlets in Delhi-NCR Tpot Café will begin launches in other cities. The company is also planning to introduce a varied range of packaged teas and refreshment home deliveries. They also intend to be a part of the growing health and wellness market.
Elanpro launches beverage dispenser machine ‘Hot Wonder’
Elanpro, a leading refrigeration company, has launched Hot Wonder made by Italian firm SPM. Hot Wonder is the hot dispenser of chocolates and beverages like coffee, hot milk, soup, and tea. The machine is ideal for bars, cafes, cafeterias, dessert bars and ice-cream shops. Hot Winder has a five liter, removable, a transparent bowl that makes it easy to clean. Since it is equipped with a polysulfone mixing system, it prevents raw materials from getting deposited at the bottom. The double thermostat keeps the temperature steady throughout the day. The product is being launched keeping in mind the coffee service sector.
SPM is well-known for their ability to make a cup of hot chocolate for decades. This dispenser is user-friendly and can produce 12 cups of hot coffee. Hot wonder costs Rs.35, 000 at the entry level. An elanpro range of beverage dispensers from SPM are sturdy and have solid steel frames and bases that provide proper support. The company also has plans to introduce other SPM products which they will market, sell and provide after-sale service and support through their existing network once the association progresses.