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IndiaNews FOOD & FOOD INGREDIENTS REVIEW June/July 2013

mailto:[email protected]

IndiaNews

FOOD & FOOD INGREDIENTS REVIEW

Contents

June/July 2013 www.giract.com

Editorial

Pg1 Editorial

Food Industry Overview

Pg2 Walmart, Tesco seek assurance on non-

reversal of FDI policy

Parle expects sales volume to bounce

back; may hike prices

Pg3 Oil India Limited to replicate dairy

model of Amul in Assam

Valuations of FMCG firms at two-year

high

Pg4 FMCG companies like ITC may post

modest growth

Pg5 Abu Dhabi's Al Dahra to buy 20% in

Kohinoor Foods for USD 18.8 mio

Pg6 India to witness merger and acquisitions

activities in FMCG space: PwC

Wal-Mart tells government it cannot

meet 30% sourcing clause

Food Ingredients News

Pg7 Sugar imports set to stop after import

duty hike

Pepper continues to slide on selling

pressure

Pg8 Rupee fall no balm for cost-hit spices

exporters

Pg9 Ruchi Soy & Japan's J-Oil & TTC enter

JV for high-quality edible oils

Indian coffee, tea, meat, spice exports

for June 2013 fall to USD 276.7 mio

Pg10 India losing ground in pepper

production, export

Pg11 India dominates global market for spice

oleoresin as demand for natural agents

swells

Food Commodity News

Pg11 Tomato prices race ahead of Indian

rupee vs US Dollar, reach INR 80 per kg

Food Commodity News (Contd)

Pg12 Basmati rice might top list of

agricultural exports Pg13 India's wheat exports secure

USD 300.10 per t in international market

Pg14 Food ministry for 7.5% import duty on

pulses

India notifies sugar import duty hike to

15% from 10%

Native banana varieties under threat, say

growers

Pg15 Dr Mohan’s launches Jeevan Dharini

brand of high-fibre rice, rice rava

Pulses production at record 18.45 mio t

in 2012–13

Beverage News

Pg16 Pepsi, Coca Cola and other soft drink

makers struggle as early rains dampen

peak sales season

Pg17 Indian food and beverages brands

relying on innovative products to take on

leaders like Red Bull, Pepsico, Dabur

others

SVA India launches Soursop Juice,

which helps fight lifestyle diseases

Pg18 Coca-Cola to invest an additional USD 3

bio in India to capture NARTD market

Aussie coffee chain Di Bella to open 2

outlets each in Pune & Dehradun

Pg19 Small tea growers seek plantation sector

status

Gujarat Tea Processors plans to enter

production

Pg20 PepsiCo expands Tropicana range,

coconut blends to come in market soon

Nilgiris tea output up 8%

Tata Beverages Hunting For Major

Acquisition

Pg21 New flavor to Indo-Iranian tea ties

(Table of contents continued on next page)

IndiaNews


Contents

June/July 2013 www.giract.com

Alcoholic Beverages

Pg21 Government to annul 25% quota of

molasses for liquor companies

Pg22 Diageo Officially Ups USL Stake To

25%, Takes Control Of Indian Spirits

Giant

Budget 2013–14: Liquor to pay for rice

United Breweries: Input costs,

TamilNadu show key to profitability

Pg23 Technoholic Delhi to plug evasion of

taxes on liquor

Processed Foods

Pg23 With output of 130 mio t, India first

among world's milk producing nations

Pg24 PepsiCo looks to hit back at look-alikes

& rivals of Kurkure with new TV

commercial

Bangs: Asvin Simon's INR 20 crore

domestic fried chicken brand

Pg25 TPG, Advent join race for acquiring

Tirumala Milk

Pinkberry enters Indian frozen yogurt

space with 3 stores in 3 cities

Pg26 Market in India shifting towards

value-added or functional confectionery

Nestle’s Alpino to take on Toblerone,

Ferrero Rocher

Pg27 Japan's luxury chocolate maker Royce

enters India's booming gourmet food

business

Parag Food eyes joint ventures to expand

further in North

Pg28 Indian minister pushing for sugar and oil

to work better together on ethanol

Supply Interview

Pg30 Supply Interview with Naturite Agro

Products Ltd

Supply Interview with Universal

Oleoresins

New Product Development

Pg31 New Product Development

Pg34 Tradeshows and Events

Pg36 Commodity Prices

Glossary

mio '000 000

bio '000 000 000

k '000

t tons

kt '000 tons

lpd litres per day

klpd kilo litres per day

tpa tons per annum

tpd tons per day

tph tons per hour

tpm tons per month

cpd cases per day

JV Joint Venture

M&A Merger & Acquisition

pa per annum

Sensex Stock exchange index

Biofuels

Pg28 Ethanol blending to save 6 a litre for oil

companies: Sugar mills

Pg29 Trials on coconut biofuel begin

IndiaNews is published every 2 months by:

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IndiaNews


Editorial

June/July 2013 www.giract.com Page | 1

The fast moving consumer goods (FMCG) sector is growing at a rapid pace with well-established

distribution networks and intense competition between the organized and unorganized segments. Indian

FMCG companies have been active in overseas acquisitions with the likes of Godrej and Wipro taking

the lead. On the other hand, multinationals have also been in acquisition activities in India. However,

there are also some short-term worries for consumer goods makers such as the depreciating rupee.

Pertaining to ingredients, the government is raising the import duty on sugar to 15% from 10% currently

to discourage overseas buying amid a drop in local prices due to ample supplies. India has been

importing sugar despite a surplus local production as it is cheaper in the world market due to a bumper

sugar output in Brazil.

India dominates the global market for spice oleoresin, which is in big demand from processed food and

fragrance industries that now mostly prefer natural colouring and flavoring agents to artificial ones as

consumers become increasingly health conscious. India controls 60% of the 13.5 kt global spice

oleoresins market.

In commodity news, food grains output in 2012 is lower than previous year due to poor monsoon in

Maharashtra, Karnataka and Rajasthan. However, the production is expected to rebound in 2013 as the

country is currently receiving good monsoon and sowing area has exceeded last year's level so far.

Early and heavy rains flooding almost the entire country have hit soft drink sales in June, the most

critical month for the INR 14 000 crore soft drink industry. With growth slowing to single digits, soft

drink giants Coca-Cola and PepsiCo are stepping up consumer promotions and trade discounts to push

sales. Leading beverage companies are planning to expand their product portfolio in order to improve

sales. Coca-Cola India will invest an additional USD 3 bio in India through 2020 to further capture

growth opportunities in the country's fast-growing non-alcoholic ready-to-drink (NARTD) beverage

market. Beverages and snacks major PepsiCo expanded its Tropicana fruit juice portfolio in India with

the introduction of coconut water blended variants.

Global food processing giants are looking for expansion into India with either acquisition of leading

Indian food companies or with the launch of new products. French dairy giants Danone and Lactalis

have made offers to acquire Hyderabad based company - Tirumala Milk Products. Pinkberry, one of the

world’s leading frozen yogurt retailers, has expanded into India – its 19th global market.

Biofuels are often thought to be a less expensive source of fuel. Sugar mills say oil marketing companies

(OMCs) can indeed save money if petrol is sold blended with ethanol, contradicting the OMCs'

suggestion that blending will lead to costlier fuel.

At IndiaNews, we remain committed to tracking news of the food and beverage industry in this huge

sub-continent. We look forward to continuing to bring you a concise bi-monthly glance.

http://economictimes.indiatimes.com/topic/Godrej

IndiaNews


Food Industry News


Walmart, Tesco seek assurance on

non-reversal of FDI policy

Global retailers like Walmart and Tesco have

sought assurance from India that any change of

governments at both centre and states should not

result in reversal of FDI policy in multi-brand

segment, before taking investment decisions in

the country.

Bentonville-based Walmart has also raised

apprehensions about the ongoing probe by

investigating agency Enforcement Directorate,

said an internal note of the Department of

Industrial Policy and Promotion (DIPP).

The main issue raised by Walmart and Tesco

was that "the next government could reverse the

MBRT policy. States which have at present

opted for opening of front-end stores in their

territory can opt out at a later stage".

The general elections in India are expected to be

held next year.

When contacted on the matter, a Walmart India

spokesperson said: "We continue to work with

the government of India to better understand the

rules that exist for FDI and we appreciate the

government's willingness to consider our

requests for clarity on conditions contained in

the new FDI policy".

(Continued in next column)

Walmart, Tesco seek assurance on

non-reversal of FDI policy (Contd)

On the other hand, a Tesco spokesperson said:

"We are reviewing the DIPP clarifications to

understand the implications".

After the government cleared 51% FDI in

MBRT last year, only 11 states have so far

agreed to allow foreign retailers to open stores.

The DIPP had recently issued clarifications

regarding FDI in MBRT under which foreign

retailers entering India's multi-brand segment

will not be allowed to franchise their stores and

will have to put 50% of their investments in

back-end infrastructure, specifically for the

chain they are setting up.

Walmart currently has a 50:50 cash and carry

joint venture with Bharti Group, whereas Tesco

had entered into a partnership with Tata Group

firm Trent in 2008 for providing back end

support to the latter.

(financialexpress.com 20 June 2013)


back; may hike prices

India’s largest biscuit maker Parle Products

Pvt. Ltd expects sales volumes to bounce back

this year mainly on the back of a recovery in

spending in rural areas and increased demand

for affordable cream biscuits and cookies.

(Continued on next page)

IndiaNews


Food Industry News



back; may hike prices (Contd)

This year Parle, which gets over 90% of its sales

from biscuits, expects volumes to rise 12–13%

in the category, group product manager

Mayank Shah said in an interview. Last year,

the company reported biscuit volume growth of

8%, the lowest in several years, as an uneven

monsoon and higher prices led to lower rural

spending.

Parle’s ‘mid-tier’ biscuits are priced at

INR.150–200 per kg, higher than its eponymous

glucose biscuit and lower than its premium

brands such as Hide and Seek and Milano. Shah

also forecast an increase in volumes of over 8%

for Parle-G, India’s highest selling biscuit

product, for the year ended March 2014.

Over the past three years, Parle and its rivals

Britannia Industries Ltd and Sunfeast maker

ITC Foods have been passing on increased input

costs to shoppers. Last year, Jain estimates that

biscuit prices rose by over 7%.

But though costs of some inputs such as sugar

and wheat have stabilized, biscuit prices will

likely rise again this year, Parle’s Shah said.

(livemint.com 04 July 2013)

Oil India Limited to replicate dairy

model of Amul in Assam

Oil India Limited (OIL) will replicate Amul

model of milk production in Assam. OIL

Chairman and Managing Director,

S. KSrivastava who was in Guwahati on

Tuesday said OIL will take an ambitious project

of "Kamdhenu" where it will organize the dairy

sector of Assam.

Srivastava said people from Gujarat

Cooperative Milk Marketing Federation Ltd

(GCMMF) which owns Amul brand will do

baseline survey for us”.

This project may take at least 3 to 5 years to

come up. Northeast India is milk deficit region.

CMD added, "Amul model is a success story

and we can replicate it here. We are not taking

this project as a business preposition but a CSR

initiative which will generate lot of

employment.

(economictimes.indiatimes.com 02 July 2013)


high

Some analysts seem sceptical about the

prospects of that happening, although the

companies themselves are confident that

business isn’t going to suffer despite the

economic gloom.


IndiaNews


Food Industry News



high (Contd)

There are also some short-term worries for

consumer goods makers such as the depreciating

rupee, which hit a new low last week.

One of those companies is Hindustan Unilever

Ltd (HUL), India’s biggest consumer goods

company, in which parent Unilever Plc has just

boosted its stake to 67% from 52% through a

buyback of shares worth EUR 2.45 bio (around

INR 19 180 crore).

In the last two years, the HUL stock has risen

82.8% on BSE while the FMCG index has

gained 717.7%, against a 4% rise in the

benchmark Sensex. In the same period, shares

of Dabur India Ltd, Marico Ltd and

Godrej Consumer Products Ltd have risen

37.7%, 36.7% and 85.8%, respectively.

Mahesh Israni, Chief Marketing Officer,

Parag Milk Foods Pvt. Ltd, which has brands

such as Gowardhan milk and Go cheese, is

targeting 40% growth in fiscal 2014, higher than

its compounded average growth of

approximately 35% in the last five years.



high (Contd)

Deutsche Bank warned that macroeconomic

risks of high inflation and poor job creation

outlook have started to affect the volume growth

of staples. It also suggested that the slowdown

in urban consumption is due to a vicious

cycle--input cost inflation of items such as milk,

wheat and sugar, among other things, which has

led to a slower pace of innovation in foods,

which in turn has led to lower consumer

recruitment. It noted that urban India mostly

accounted for many food categories and that the

poor in India’s cities, estimated to constitute

25-30% of consumer demand, was hit the most

by high inflation. (livemint.com 05 July 2013)

FMCG companies like ITC may post

modest growth

Fast moving consumer goods (FMCG)

companies are likely to face another quarter of

modest growth in volumes - more so in case of

discretionary consumption products.


IndiaNews


Food Industry News


FMCG companies like ITC may post

modest growth (Contd)

Slowdown in volume growth has not deterred

companies from launching new products and

brand extensions. Companies also spent more

on advertising and promoting their products. In

line with the quarter to March, spending on

advertising is likely to remain high and savings

on raw materials will be channelized towards

more investments in brands.

Since the past two quarters, consumer goods

companies have been using the savings on raw

materials to fund higher investments on brands.

The benefit of these investments is likely to be

reaped over the coming quarters. In the near

term, the sector will face headwinds in the form

of a slowdown in growth, high prices of fruits

and vegetables and lower consumer confidence.

A good start to the monsoon augurs well for the

sector, providing a fillip to rural consumption.

(economictimes.indiatimes.com 10 Jul, 2013)

Abu Dhabi's Al Dahra to buy 20% in


Abu Dhabi's Al Dahra Holdings LLC is picking

up a 20% stake in food products maker

Kohinoor Foods Ltd for INR 112.8 crore

(USD 18.8 mio). The deal involves

Al Dahra International LLC, a subsidiary of Al

Dahra Holdings, buying shares at INR 160 per

unit, which is over four times Kohinoor Foods’

closing price on the stock exchange on Friday.


Abu Dhabi's Al Dahra to buy 20% in


(Contd)

Kohinoor Foods will issue a little over 7 mio

shares to Al Dahra International. The deal also

gives Al Dahra the right to buy 4.99% more

within six months from the date of completion

of the transaction.

Al Dahra and Kohinoor Foods have also entered

into a joint venture to develop and manage a

brown-to-white rice facility in Abu Dhabi.

Kohinoor will have a 20% stake in the JV,

called Al Dahra Kohinoor, and also the right to

appoint a director on its board.

This facility will have a capacity of 60 bio t

scalable to 100 bio t besides a storage facility of

30 bio t. The JV will buy minimum 25 bio t of

basmati rice from Kohinoor Foods every year.

This is the second major inbound deal in the

food products this year. This is also the

second major strategic deal by Kohinoor

Foods in two years.

Al Dahra is active in the agricultural sector and

specialises in the production of agricultural

products and animal feed. It has made

investments in countries such as the UAE, the

US, Spain, Serbia, Egypt and South Africa.

(vccircle.com 15 July 2013)

http://economictimes.indiatimes.com/topic/savings

http://economictimes.indiatimes.com/topic/investments

IndiaNews


Food Industry News


India to witness merger and

acquisitions activities in FMCG space:

PwC

India will continue to see merger and

acquisitions (M&A) and private equity activity

within the FMCG sector both on a domestic and

cross-border basis, notwithstanding the global

economic slowdown, according to a report by

consulting firm PwC.

"The fast growing and differentiated Indian

FMCG sector will continue to receive interest

from financial investors, who will remain

focused on the demand being created by Indian

consumers, and western corporates who need to

look at emerging markets to meet wider growth

aspirations”, said the report.

There is an opportunity to gain market share and

footprint in other fast growing countries/regions

through acquisitions and also access to an

established and well invested distribution

infrastructure capable of leveraging existing

products that will be adaptable to the new

geography, the report added.

Indian FMCG companies have been active in

overseas acquisitions with the likes of Godrej

and Wipro taking the lead.


India to witness merger and

acquisitions activities in FMCG space:

PwC (Contd)

On the other hand, multinationals have also

been in M&A activities in India. After acquiring

Ahmedabad-based FMCG firm Paras

Pharmaceuticals in 2011, Reckitt Benckiser had

sold part of it homegrown firm Marico

Industries. Likewise, Jyothy Laboratories BSE

0.36%acquired 50.97% stake in Henkel India

LtdBSE 1.20% in 2011.



meet 30% sourcing clause

The world's largest retailer Wal-Mart has

expressed its inability to the government on

meeting the sourcing norm in the multi-brand

segment that requires 30% procurement from

small industries, stating it can procure only

about 20%.

"Recently there was a meeting between

Wal-Mart and officials of DIPP. The company

has said that they will not be able to meet the

mandatory 30% sourcing norm and can only

source about 20%”, sources said.

Wal-Mart India spokeswoman said: "We are

still very early in the process on FDI but are

excited by the opportunity in front of us.


http://economictimes.indiatimes.com/topic/private-equity

http://economictimes.indiatimes.com/topic/FMCG

http://economictimes.indiatimes.com/topic/market-share

http://economictimes.indiatimes.com/topic/Godrej

http://economictimes.indiatimes.com/topic/Reckitt-Benckiser

http://economictimes.indiatimes.com/jyothy-laboratories-ltd/stocks/companyid-16356.cms

http://economictimes.indiatimes.com/jyothy-laboratories-ltd/stocks/companyid-16356.cms

http://economictimes.indiatimes.com/henkel-india-ltd/stocks/companyid-4597.cms

http://economictimes.indiatimes.com/henkel-india-ltd/stocks/companyid-4597.cms

http://timesofindia.indiatimes.com/topic/Wal-Mart-India

http://timesofindia.indiatimes.com/topic/Fdi

IndiaNews


Food Industry News/

Food Ingredient News



meet 30% sourcing clause (Contd)

As per the foreign direct investment (FDI)

policy for multi-brand retail trading, at least

30% of the value of procurement of

manufactured/processed products shall be

sourced from Indian 'small industries'.

In a meeting with commerce and industry

minister Anand Sharma, the global chains have

flagged the issue and have demanded to alter the

condition to 'preferably' from 'mandatory' as in

the case of single brand retail.

Although the government has permitted 51%

FDI in multi-brand retail about ten months back,

no formal proposal has been received by the

DIPP yet.

(timesofindia.indiatimes.com 23 July 2013)

Sugar imports set to stop after import

duty hike

Government is raising the import duty on the

sweetener to 15% from 10% currently to

discourage overseas buying amid a drop in local

prices due to ample supplies, two government

sources said.

The duty increase could add to global sugar

stocks and pressure prices further by halting

India's sugar imports.


Sugar imports set to stop after import

duty hike (Contd)

India has been importing sugar despite a surplus

local production as the sweetener is cheaper in

the world market due to a bumper sugar output

in Brazil. India has imported around 700kt sugar

so far in the current marketing year that started

on October 1, 2012, including imports of 100kt

white sugar, Abinash Verma, director general of

the Indian Sugar Mills Association, told

Reuters.

India's biggest sugar refiner Shree Renuka is

planning to export refined sugar from its Haldia

unit as returns are higher in the overseas market,

Narendra Murkumbi, managing director of

Shree Renuka Sugars, told Reuters in an

interview on Thursday.

India is likely to produce 24.6 mio t of sugar in

2012/13, an industry body has said, against an

annual demand of about 23 mio t.



pressure

Pepper prices continued their downward trend

on Thursday on selling pressure believed to be

because of the opening of the colleges/schools

after annual vacation. New depositors from

Karnataka and expert processors from Kerala

were said to be depositing in the warehouses

and an estimated 30 t of pepper have been

reportedly deposited.


http://timesofindia.indiatimes.com/topic/Foreign-Direct-Investment

http://timesofindia.indiatimes.com/topic/Anand-Sharma

IndiaNews





pressure (Contd)

On the spot, 78 t of fresh pepper arrived from

Kerala and Karnataka and they were all traded

afloat at an average price of INR 338 a kg.

Pepper from Karnataka and the plains of Kerala

were traded at INR 333 while that from Pulpally

and Battery and the High ranges of Kerala was

sold at INR 338 and INR 343 respectively.

May contract on the NCDEX decreased by

INR 530 to close at INR 35 495 a quintal. Total

turnover moved up by 28 t to close at 50 t. Total

open interest dropped by 37 t to 129 t.

Spot prices fell on selling pressure by INR 200

to close at INR 33 800 (ungarbled) and

INR 35 300 (garbled) a quintal.

Indian parity in the international market was at

USD 6 675 (c&f) for prompt shipments while

some were selling at USD 6 550 a t (c&f).

Overseas prices (in USD/t): B Asta 6 375;

Sri Lanka 500 GL FAQ 6 100 (fob) Colombo.

(spicemarketnews.com 17 May 2013)

Rupee fall no balm for cost-hit spices

exporters

A falling rupee has been of no help to spices

exporters because of low availability and higher

local prices of raw materials.

Domestic prices of spices such as pepper, jeera,

chilli and turmeric are moving up, which makes

sourcing costlier for exporters. Futures prices

are also showing a rising trend in most cases. In

the case of cardamom, however, a higher output

has pushed down prices, brightening export

prospects.

“Jeera prices are hovering in the range of

INR 134-140 per kg, INR 5 up from last week.

Chilli prices too have gone up”, said

Shailesh Shah, Director of Jabs International.

Demand for Indian jeera is quite high because

its quality is superior to jeera from Syria, the

other major producing country.

Chilli prices are hovering around INR 60 per kg

and are already 20% higher than previous year's

prices. Black pepper prices are on fire due to

inadequate supply and rising demand.


http://economictimes.indiatimes.com/topic/rupee

http://economictimes.indiatimes.com/topic/Shailesh%20Shah

IndiaNews




Rupee fall no balm for cost-hit spices

exporters (Contd)

Pepper prices were ruling at INR 364 per kg

five days ago. The July futures contract is at

INR 379 per kg. The pressure on local markets

has gone up with oleoresin exporters looking at

domestic supply. Usually, oleoresin exporters

import significant quantities to meet their needs.

However, a rising supply of cardamom has

pushed down prices, which are hovering around

INR 550-600 per kg.

This may augur well for exports. "Our prices

have fallen to USD 14 per kg from USD 16–18

per kg two months ago because of rupee

depreciation. Currently, purchases before the

Ramdan fasting period is going on”, said SPGR

Nityanandan, a leading exporter. Cardamom

exports plunged 52% last year to 2.2 kt.

(economictimes.indiatimes.com 26 June 2013)

Ruchi Soy & Japan's J-Oil & TTC

enter JV for high-quality edible oils

Ruchi Soy Industries Ltd, one of India's leading

food and agro-based fast-moving consumer

goods (FMCG) players, entered a joint venture

with J-Oil Mills Inc (J-Oil), one of Japan's

leading edible oil companies, and Toyota

Tsusho Corporation (TTC), one of the largest

global trading companies in Japan.


Ruchi Soy & Japan's J-Oil & TTC

enter JV for high-quality edible oils

(Contd)

Ruchi Soy Industries Ltd's board of directors

consented to form the joint venture company, in

which the Indian company will have a 51%

stake.

J-Oil will have a 26% stake, while the share of

TTC would be 23%. The joint venture

company's board will have representatives from

all the three companies.

It will be engaged in the production and

marketing of high-quality, functional edible oils.

Ruchi Soy's board also approved the sale and

transfer of its soy processing business –

currently based out of its plant situated in

Shujalpur, Madhya Pradesh – to the proposed

joint venture.

The joint venture plans to start supplying

products to institutional customers by the end of

2013, and launch high-quality consumer

products in the Indian market in the second half

of 2014. (fnbnews.com 06 June 2013)



InfodriveIndia.com, one of the country's premier

import-export market research companies,

announced that in June 2013, India's coffee, tea,

meat and spice exports fell to USD 276.7 mio, a

decrease of 9.86% compared to May 2013.


IndiaNews






(Contd)

These findings are based on the data about

India's exports of coffee, tea, meat and spices

available on InfodriveIndia.com and on export

shipping bills filed at Indian Customs by

exporters from India at over 110 ports in India.

These include the Jawaharlal Nehru Port Trust

(JNPT), Mumbai's air and seaports, Chennai's

air and seaports, Delhi's Indira Gandhi

International (IGI) Airport, Delhi's

Tughlakhabad inland container depot (ICD),

Delhi's Patparganj, Kolkata's air and seaports,

Bangalore airport, etc.

(fnbnews.com 18 July 2013)

India losing ground in pepper

production, export

India is fast losing its status as a leading

producer and exporter of pepper, also known as

"black gold", as production and cultivated area

of this spice variety have dwindled.



production, export (Contd)

Grown mostly on the slopes of Western Ghats in

Kerala, Karnataka and Tamil Nadu, cultivation

base of pepper has come down sharply in the

last decade hitting production and export.

According to pepper growers and traders,

factors ranging from vagaries of climate to

afflictions wilting pepper vines, contributed to

fall in production and shrinkage of cultivated

area.

Statistics of the International Pepper

Community (IPC) show the area under pepper

cultivation in India dwindled from

218 670 hectares in 2001 to 182 000 hectares in

2010.

With the cultivated area shrinking steadily in

India, pepper production also fell to 50kt by

2010 from 79 000 ten years ago. In Kerala

alone, area under pepper cultivation fell from

172 182 Ha to 85 335 Ha in a single year from

2010–11 and production plummeted to 38kt

from 45.3 kt, according to the state's Economic

Review.

According to Spices Board, export of Indian

pepper in 2012–13 came down by 40%

compared to the previous year. While the

country shipped 26.7 kt of pepper in 2011–12,

exports fell to 16kt in

2012–13. Ironically, this happened in a year

when the export of spices from India marked a

record 22% growth crossing INR 10 000 crore

mark as per the Spices Board figures.


IndiaNews


Food Ingredient News /

Food Commodity News



production, export (Contd)

According to farmers, who mostly grow pepper

as an inter-crop, production suffered from

afflictions like root-wilt and slow-wilt and also

price fluctuation, forcing them to abandon the

enterprise in prime pepper areas like Wayanad

and Idukki.

(business-standard.com 30 June 2013)

India dominates global market for

spice oleoresin as demand for natural

agents swells

India dominates the global market for spice

oleoresin, which is in big demand from

processed food and fragrance industries that

now mostly prefer natural colouring and

flavoring agents to artificial ones as consumers

become increasingly health conscious.

India controls 60% of the 13.5 kt global spice

oleoresins market even as China has emerged as

a strong contender in paprika oleoresin, the most

in-demand spice oil.


India dominates global market for

spice oleoresin as demand for natural

agents swells (Contd)

“Oleoresins are more economical than whole or

ground spices as less quantity can give the same

effect. Also, they enhance the visual appeal and

flavor, and increase the shelf life of the

products”, says George Paul, director of

Synthite Industries, the largest oleoresin

extraction firm in India.

Four companies based in Kerala control more

than 85% of India's INR 2 000-crore spice

oleoresin industry. Almost 95% of their

production is exported even as the domestic

market is fast waking up to the potential of the

spice oleoresins.

Industry officials say the popularity of

oleoresins is fast spreading beyond

North America, West Europe, Japan and Korea,

to many emerging markets. Companies also

expect share of domestic market in total

oleoresin sales to double to 10% in the next

two-three years.


Tomato prices race ahead of Indian

rupee vs US Dollar, reach INR 80 per

kg

Tomato prices have more than tripled in the past

15 days to INR 80 per kg in the capital, easily

beating the plunging Indian rupee's exchange

power vs US Dollar. Indian rupee breaches

60-mark again vs US Dollar on capital outflows.


IndiaNews


Food Commodity News


Tomato prices race ahead of Indian

rupee vs US Dollar, reach INR 80 per

kg (Contd)

Rain has disrupted picking operations in

Haryana, Uttarakhand, Himachal Pradesh and

east Punjab, while the condition of the crop has

also deteriorated. Tomato supplies to the Delhi

market have also been affected by blocked roads

following the recent landslides and flash floods

in Uttarakhand, he added.

According to the Delhi Agricultural Marketing

Board, current tomato arrivals at the Azadpur

wholesale market have declined by 50% to

2 833 quintals per day from 15 days ago.

Tomato is being sold at INR 47 per kg at

Azadpur wholesale market, compared with

INR 60–80 per kg in retail outlets. Good quality

tomato from Karnataka is priced higher, while

the rain-hit crop is available at INR 30–40 per

kg, traders added. Tomato production in the

country is estimated to be 18 mio t this year.

Maximum output comes from Andhra Pradesh,

Karnataka and Odisha.

(financialexpress.com 05 July 2013)

Basmati rice might top list of

agricultural exports

After two years, Basmati rice could again

emerge as India's top agricultural export

commodity. During the last two financial years,

guar gum had topped the list, in terms of value,

primarily due to the shale gas boom in the US.

The commerce ministry expects Russia would

lift a ban on Indian Basmati imports soon.

Russia, earlier a net importer of Indian Basmati,

had imposed a ban on these imports in February,

owing to the detection of copra beetle

infestation.

In April and May, Basmati exports rose about

25% in volume terms and about 65% in terms of

rupee value (46% in Dollar terms), against the

year-ago period, show data from the All India

Rice Exporters Association. In April, the value

of Basmati exports stood at INR 2 378 crore

(about USD 400 mio), a rise of about 90% (in

rupee terms) compared to the corresponding

period last year.


IndiaNews


Food Commodity News


Basmati rice might top list of

agricultural exports (Contd)

In Dollar terms, the export value rose 67%. In

May, Basmati exports stood at INR 2 250 crore

(about USD 375 mio), a 44% rise against May

2012, in rupee terms. In Dollar terms, exports

rose about 30% in May.

High demand from Iran, after the settlement of

the payment mechanism with India following

US sanctions, and a sharp depreciation in the

rupee led to the rise in export realisations,

exporters said.

In 2012–13, India exported gaur gum worth

INR 21 287 crore, while basmati rice exports

stood at INR 19 390 crore.

(business-standard.com 26 June 2013)

India's wheat exports secure

USD 300.10 per t in international

market

The Food Corporation of India (FCI) said Indian

wheat exports fetched a price of USD 300.10

per t in the international market, according to

the last tender opened. FCI has exported about

4 mio t of wheat so far, securing an average of

USD 311,69 per t.




market (Contd)

An FCI official said the earnings from this

year's exports proved that the wheat exported by

the corporation has a wider and higher

acceptability in the international market.

After a long gap, the government allowed the

export of 4.5 mio t of wheat this year, because

the production increased and there was excess

stock of wheat in the country.

Of the export target, 4.03 mio t has already been

dispatched. The reserve price for export of the

first lot of 2 mio t was just USD 228 per t, while

for the second lot it was fixed at USD 300 per t.

The main buyers for Indian wheat are South

Korea (10 01 789 t); Ethiopia (6 80 358 t),

Bangladesh (6 75 432 t), Yemen (3 06 519 t),

Thailand (2 71 767 t) and Indonesia

(2 10 700 t). Other buyers included the United

Arab Emirates, Sudan, Oman, Qatar, Vietnam,

Malaysia and the Philippines.


IndiaNews


Food Commodity News




market (Contd)

FCI has exported the wheat through agencies

like the State Trading Corporation of India Ltd

(STC) and PEC Ltd. Mundra in Gujarat was the

port that handled the largest quantify of export,

followed by Kandla (also located in the Kutch

area of the western Indian state).

The main players in the international wheat

market around world are the United States of

America, Canada, Ukraine, Australia, Russia

and Argentina. (fnbnews.com 28 June 2013)

Food ministry for 7.5% import duty

on pulses

The food ministry is in favour of a 7.5% import

duty on pulses as against 10% suggested by the

Commission for Agricultural Costs and Prices

(CACP) to boost domestic production. India, the

largest producer of pulses, imports about 3 mio t

of lentils every year to fulfil its domestic

demand.

The government has made some progress in

increasing the production of pulses through

higher minimum support price (MSP) and the

agriculture ministry fears sowing of pulses

could be affected if cheap imports flood the

market, he added.

According to industry data, traders are

importing tur at INR 300–3 500 per quintal from

Myanmar currently while domestic prices are

ruling at INR 300 per quintal.

(financialexpress.com 09 July 2013)

India notifies sugar import duty hike

to 15% from 10%

India issued a notification on Tuesday to

implement a hike in import duty on sugar to

15% from 10% as the world's top sugar

consumer tries to prop up local prices which are

falling due to ample and cheap global supplies.

In a meeting last week, key government

ministries agreed to raise import tax on the

sweetener.

The duty increase could mean a halt to India's

sugar imports, which have already slowed to a

trickle following a sharp drop in the rupee

which makes Dollar-denominated world sugar

more expensive. A halt in imports would

pressure global prices further as stocks would

not ease. (financialexpress.com 09 July 2013)

Native banana varieties under threat,

say growers

Many native banana varieties such as the

“poovan”, “karpooravalli”, “rasthali”, “metti”,

“neipoovan”, and red banana are prone to

disease and pest attacks affecting the yield of

the crop, the Tamil Nadu Banana Growers’

Federation has said in a resolution adopted at its

general body meeting.


IndiaNews


Food Commodity News


Native banana varieties under threat,

say growers (Contd)

As the cost of production of these seedlings was

high and private seed companies were reluctant

to take up the task, the State government should

draw up a plan to revive these native varieties in

the interest of farmers, the association said in a

resolution.

Banana growers were prone to suffer heavy

losses owing to natural vagaries. This often

pushed many banana growers into perennial

debt. Even if farmers had insured their crop, it

was not of much help as compensation was

given only if widespread damage had occurred

in an entire firka. (thehindu.com 07 July 2013)

Dr Mohan’s launches Jeevan Dharini


Indian diets are predominantly derived from

grains such as white rice, which contains less

than 1.5g % of dietary fibre.

Dr Mohan's Group of Institutions launched

Jeevan Dharini, a brand of white rice and rice

rava, to address this dietary challenge faced by

most Indians, especially vegetarians – the food

they consume does not contain enough fibre.


Dr Mohan’s launches Jeevan Dharini


(Contd)

Dr V Mohan, director, Dr Mohan’s Group of

Institutions, said, “Jeevan Dharini Rice is an

exceptional high-fibre rice variety and the first

of its kind in the world.It was developed by

employing intensive classical plant-breeding

and bio-chemical screening approaches.

The rice has high dietary fibre content (8.3%) in

its polished form, as compared to less than 1.5%

in other cultivated rice varieties in the polished

forms. It reduces increases in blood sugar and

insulin demand; may decrease risk of obesity,

type 2 diabetes, cancer and heart disease;

promotes gut health; relieves constipation”.

Kamala Krishnaswamy, senior honorary

advisor, Department of Foods Nutrition and

Dietetics Research, Madras Diabetes Research

Foundation, said, “Dr Mohan’s Jeevan Dharini

High-Fibre Rice and Dr Mohan’s Jeevan

Dharini High-Fibre Rice Rava could be used for

all rice-based preparations, including idli, dosa,

upma, pongal and kitchidi”, she said.


Pulses production at record

18.45 mio t in 2012–13

India has achieved a record pulses production of

18.45 mio t in the 2012–13 crop year ended

June (The output stood at 18 mio t in May and

17.1 mio t in 2011–12).


IndiaNews


Food Commodity News /

Beverage News


Pulses production at record

18.45 mio t in 2012–13 (Contd)

The record pulses production augurs well for the

country which is depended on imports to meet

the shortfall of around 3–4 mio t. Higher supply

will reduce imports and also prices. Also, higher

support price prompted farmers to grow pulses.

Food grains output in 2012–13 is lower than

previous year due to poor monsoon in

Maharasthra, Karnataka and Rajasthan.

However, the production is expected to rebound

this year as the country is currently receiving

good monsoon and sowing area has exceeded

last year's level so far.

(businesstoday.intoday.in 22 July 2013)

Pepsi, Coca Cola and other soft drink


peak sales season

Early and heavy rains flooding almost the entire

country have hit soft drink sales in June, the

most critical month for the INR 14 000-crore

industry. The April-June quarter marks the

highest spurt in soft drink sales in a year,

contributing close to 40% of annual sales.


Pepsi, Coca Cola and other soft drink


peak sales season (Contd)

According to India meteorological department,

the country received its heaviest rainfall in 12

years in the month of June, and the monsoon

season is expected to last through September.

The department also said that the south-west

monsoon has advanced the fastest this year over

a period of 50 years, a month earlier than

expected.

An industry veteran said the growth would not

touch the levels of last year in the June quarter.

"Market conditions are very different now and

consumption is down. The unseasonal rains

have added to the tough times”, the person said.

During January-March, Coca-Cola had posted

8% volume growth in India. PepsiCo does not

declare volume sales of its India division.

With growth slowing to single digits, soft drink

giants Coca-Cola and PepsiCo are stepping up

consumer promotions and trade discounts to

push sales.


IndiaNews


Beverage News


Indian food and beverages brands

relying on innovative products to take

on leaders like Red Bull, Pepsico,

Dabur others

A host of home-grown food brands are testing

the mettle of larger, more established players in

the country by cutting costs through innovation

and offering wider choice to consumers.

Companies such as Hector Beverages, Prataap

Snacks, Amalgam Speciality Foods and Balan

Natural Food are taking on the brand and money

power of established players like Red Bull,

Pepsico, McCormick and Dabur.

These food and beverage consumer ventures

have launched brands in categories like energy

drinks, potato chips, seasoning and fruit juices.

Product innovation is core to these brands. For

instance, Tzinga offers multiple flavors,

compared with Red Bull's single product. It also

comes in innovative packing that is cheaper than

the can.


Indian food and beverages brands

relying on innovative products to take

on leaders like Red Bull, Pepsico,

Dabur others (Contd)

Hector Beverages is now piloting a traditional

Indian drink brand Paper Boat, which is

available in traditional flavors like aam ras and

jal jeera.

Bangalore-based Balan Natural Food, which

sells products under the B Natural brand, is

taking on large juice brands like Dabur's Real

and Pepsico's Tropicana by selling juices made

of Indian fruits and plants such as jamun,

brahmi and amla.

Kochibased Amalgam Speciality Foods thinks

major differentiation between them and their

main competitors is price.

Yellow Diamond, on the other hand,

differentiates on quantity it offers more chips

per pack than bigger rivals.




SVA India has launched Soursop Juice, a

product under the MO Fruit banner. The juice

has the natural qualities for thwarting all

prevailing lifestyle diseases and preventing

illnesses due to stress, work pressure. The fruit

is said to help battle diseases through the

annonaceous acetogenins compound found in it,

which kills cancer cells.


IndiaNews


Beverage News




(Contd)

Soursop fruit is said to help fight general

lifestyle ailments through its natural sedative

properties for insomnia, rich fibre content

treating bowel movement difficulties along with

having anti-diabetic properties which helps

regulate blood sugar.

The fruit’s leaves relieve pain and

inflammation, compounds reduce blood

pressure controlling hypertension, iron helps

prevent anaemia, and moisture in the fruit fights

UTI as well as large quantities of vitamin C,

which deal with cold, fever and migraines.

(fnbnews.com 15 June 2013)

Coca-Cola to invest an additional

USD 3 bio in India to capture NARTD

market

Coca-Cola India has announced that Coca-Cola

India System will invest an additional

USD 3 bio (approximately INR 165 bio) in

India through 2020 to further capture growth

opportunities in the country's fast-growing

non-alcoholic ready-to-drink beverage market.


Coca-Cola to invest an additional

USD 3 bio in India to capture NARTD

market (Contd)

With the new USD 3 bio investment, the

Coca-Cola system now plans to invest

USD 5 bio in India from 2012 to 2020 in the

non-alcoholic ready-to-drink (NARTD)

beverage market.

The Coca-Cola system has already invested

more than USD 2 bio in India since it re-entered

the country in 1993. The new announcement

brings the total investment number to USD 7 bio

since re-entry into India.




Di Bella, the Australian coffee chain, is set to

expand its Indian operations to Tier-II and

Tier-III cities by opening two stores apiece in

Pune and Dehradun.


IndiaNews


Beverage News




(Contd)

The stores are likely to open in the next quarter.

In addition, there will be more outlets in

Mumbai and Hyderabad. The chain also plans to

increase its pan-India presence by opening

stores in Delhi, Bangalore and Chandigarh in

the next two or three years.

Sachin Sabharwal, Managing Director, Di Bella,

said, “The Indian retail coffee market is growing

at a rapid rate. We are the first coffee chain in

India to introduce a cross-platform mobile

application giving our customers convenience at

their fingertips.

The application will allow customers to locate

their closest Di Bella coffee outlet, invite a

friend for coffee, get loyalty rewards (via QR

code), learn about specialty coffee-growing

regions, and order their favourite Di Bella

Coffee anywhere and anytime”.


Small tea growers seek plantation

sector status

Tea prices are expected to increase 5–10% in

FY14, as unfavourable weather might cause

production to fall by 15–20% in the current

financial year. Samir Roy chairman, National

Federation of Small Tea Growers India said

“We are hoping to manage production but a

15-20% dip in production is likely in the current

fiscal”.


Small tea growers seek plantation

sector status (Contd)

The newly-launched sustainability code named

‘Trustea’, which encompasses all aspects of tea

production, seeks to embrace sustainability

principles to boost productivity, maintain safety

standards to improve quality compliance, and

include all stakeholders in the mainstream.

(business-standard.com 12 July 2013)


production

Packet tea retailer Gujarat Tea Processors and

Packers Ltd plans to enter tea production. The

company has recently decided to acquire estates

producing a total of 2.5 mio kg in Assam (4–6

gardens) and West Bengal. Gujarat Tea

Processors is the country’s third largest tea

packaging company, owning brands such as

Wagh Bakri, Good Morning and Mili Tea.

According to its Chairman and Managing

Director Piyush Desai, the company’s board has

approved up to INR 800 crore investments and

the acquisition would help ensure supply of

quality tea.


IndiaNews


Beverage News



production (Contd)

Having entered Rajasthan, Madhya Pradesh,

Maharashtra, Delhi and Chhattisgarh, the

company now plans to expand presence in Uttar

Pradesh, Chandigarh and Himachal Pradesh

in 2013–14. The company will invest INR 40-50

crore over the next two years, he said.

(thehindubusinessline.com 30 June 2013)

PepsiCo expands Tropicana range,


Beverages and snacks major PepsiCo today

expanded its Tropicana fruit juice portfolio in

India with the introduction of coconut water

blended variants.

The company said it has introduced in the

Indian market a new category offering -

Tropicana Coconut Fruit Blends, available in

two variants - Coconut Orange and Coconut

Litchi, PepsiCo India said in a statement.


PepsiCo expands Tropicana range,


(Contd)

The Tropicana Coconut Fruit Blends, which

have been launched nationally, are priced at

INR 85 for 1 litre and INR 20 for 200 ml

respectively, the company said. With the launch,

the company hopes to bring in more consumers

to the packaged juice category and further

expand the franchise of Tropicana in India.

(deccanchronicle.com 16 July 2013)

Nilgiris tea output up 8%

Tea production in the Nilgiris, the largest tea

growing district in South India, has increased by

8% in the first half of current year compared to

last year, according to the latest data from tea

producing organisations. Between January and

June, the production rose to 7.45 mio kg from

6.9 mio kg last year. Tea companies reported a

production of 1.54 mio kg in June against

1.74 mio kg in June 2012.

(thehindubusinessline.com 16 July 2013)


Acquisition

Tata Global Beverages has said it plans to invest

substantially in its brands, and is on the lookout

for a major acquisition as well.


IndiaNews


Beverage News /

Alcoholic Beverages



Acquisition (Contd)

TGB owns brands such as Tetley, Eight

O’Clock Coffee, Tata Tea, and Himalayan

Water, and also has joint ventures with

Starbucks and PepsiCo.

The company said the new investment will be

mostly on its Tata Tea, Eight O’Clock

and Himalayan brands. This will include

launching the bottled water brand outside India,

as well as investing in Tetley to regain market

share in the UK. (kamcity.com 16 July 2013)

New flavor to Indo-Iranian tea ties

A tea delegation from Iran, comprising

representatives of trade, industry and

government, is set to visit India early next

month. Iran, a high-value market accounts for

about 10% of India’s foreign exchange earnings

from tea.

India vies with Sri Lanka for a share of the

140 mio kg Iranian tea market. Although there

is preference for the Indian teas, the India-Iran

trade had payments problem earlier.


New flavor to Indo-Iranian tea ties

(Contd)

All these problems has been sorted out in 2012

and now trade now takes place through the

rupee payment route. The Iranian delegation

which comprises growers & importers is set to

visit tea estates in Assam and Darjeeling, which

produce most of the quality orthodox teas.

(thehindu.com 23 July 2013)

Government to annul 25% quota of

molasses for liquor companies

The Uttar Pradesh state government is mulling

to do away with the reservation of 25% of

molasses by sugar mills for country liquor.

Several mill owners have been complaining that

the country liquor manufacturers were not

coming forward to buy molasses against their

25% allocation as they do not need it. The

molasses production has been to the tune of over

30 mio quintals because of higher cane

production. But the actual consumption of

molasses for country liquor is in the range of

around 4 mio quintals.

The sugar factories are thus at times are

compelled to sell molasses to the liquor lobby at

throwaway prices or face overflow situation.

The industry watchers said doing away with the

policy of reserving molasses for the liquor

industry will provide a level playing field to the

sugar industry. "Selling of molasses will hence

be driven by the market rate and not by the

whims of the liquor lobby,'' said a mill owner.


IndiaNews


Alcoholic Beverages


Diageo Officially Ups USL Stake To

25%, Takes Control Of Indian Spirits

Giant

Diageo has completed the final phase of its

multi-part deal to become the largest

shareholder in India’s United Spirits Ltd. (USL),

adding 14.98% over the weekend from a

share purchase agreement with Vijay Mallya’s

UBHL to bring its holding in the company to

25.02%.

Diageo says it will now effectively control USL,

which leads India’s growing spirits market.

Diageo paid a total of GBP 594 mio

(USD 886 mio) for its stake, representing a

multiple of 18 times EBITDA for USL’s fiscal

year ended in March, and expects the

acquisition to be earnings-per-share accretive in

year two.

Nevertheless, the acquisition establishes Diageo

as a dominant player in India’s domestic spirits

industry—USL had 11 entries among Impact’s

exclusive ranking of the world’s top 100 spirits

brands for 2012, with nearly half of them

in double-digit growth—and provides a ready

platform on which to build its global premium

portfolio in the country. While imported

spirits prices can be prohibitive due to high

tariffs in India, Diageo’s Johnnie Walker

Scotch whisky and Smirnoff vodka already

have a foothold in the market.

(shankennewsdaily.com 08 July 2013)

Budget 2013–14: Liquor to pay for rice

Tipplers will pay more for their next peg.

Karnataka's liquor prices will increase 8% to

26% after the state budget raised additional

excise duty to bring INR 3 000 crore more will

flow to the state exchequer. Still, Karnataka

remains cheaper among the big southern states

in liquor prices.

The Karnataka CM Siddaramaiah raised

additional excise duties by 16% to 40% across

price slabs, which directly leads to an increased

MRP. The state hopes to collect

INR 12 600 crore in taxes on liquor, up from

INR 9 600 crore last year.



TamilNadu show key to profitability

The stock of United Breweries has gained

nearly 33% in just five trading sessions,

including the 14% gain on Monday, and 5% on

Tuesday when the Bombay Stock Exchange's

branchmark index Sensexclosed down 0.6%.


http://economictimes.indiatimes.com/topic/United-Breweries

http://economictimes.indiatimes.com/topic/Sensex

IndiaNews


Alcoholic Beverages /

Processed Foods



TamilNadu show key to

profitability(Contd)

The company has been able to grow sales

volumes by 5% in the 2013 financial year

despite a slowdown in offtake in Tamil Nadu,

one of the biggest states in India in terms of

consumption of alcoholic beverages.

The volatility in prices of inputs including malt

and barley could be another concern though the

company was able to keep costs under check in

the 2013 financial year. The cost of raw

materials as a percentage of revenue fell to 42%

from 45% recorded in the last year. This reflects

better inventory management by the company.


Technoholic Delhi to plug evasion of

taxes on liquor

For the first time in India, a state has adopted

technology to purge bureaucratic delays and

corruption endemic to the manufacture,

distribution and sale of alcohol. The project by

the Delhi government to track and tax every

bottle of alcohol sold by using barcodes is

expected to help reduce revenue leakage and

check the sale of illicit liquor.


Technoholic Delhi to plug evasion of

taxes on liquor (Contd)

The new system, which was first envisioned in

2010, will play a critical role helping the excise

department raise revenues to INR 3 500 crore

this year from INR 2 869 crore in 2012–13,

officials said.

The project, being implemented by India's

largest software company Tata Consultancy

Services.. It will go live from the end of

September. At present, nearly 90% of the

project is operational covering most

manufacturers, all hotels and restaurants. The

project has been implemented for most liquor

except for beer, which will also be included by

end of September.


With output of 130 mio t, India first


India, now ranks first among the world's milk

producing nations, achieving an annual output

of about 130 mio t as a result of Ninth

Five-Year Plan.


IndiaNews


Processed Foods


With output of 130 mio t, India first


(Contd)

The per capita availability of the milk has

reached a level of 290g per day by the year

2012, which is more than the world average of

284g per day. About 14.78 mio farmers were

brought under the ambit of 1 48 965 village

level dairy corporative societies up to March

2012. Farmers of marginal, small and

semi-medium operational holdings (area less

than four hectare) own about 87.7% of the

livestock.

India is endowed with the largest livestock

population in the world. It accounts for about

57.3% of the world's buffalo population and

14.7% of the cattle population. Factors helps to

achieve this mark are: National Dairy Plan

(NDP), Dairy Entrepreneurship Development

Scheme (DEDS) and assistance to cooperatives.


PepsiCo looks to hit back at

look-alikes and rivals of Kurkure with

new TV commercial

With new TV advertisement Pepsi Co not only

hits at local brands but also tries to inculcate

brand loyalty among consumers for this INR 5

low price point.


PepsiCo looks to hit back at look-

alikes & rivals of Kurkure with new

TV commercial (Contd)

The fact that PepsiCo for the first time is urging

consumers to make an informed choice while

buying snacks says it all. Recently, PepsiCo has

been facing headwinds not only in the snacks

sector but also in the beverages segment, as it

reaped less-than-expected returns from

INR 160 crore spent on the sixth edition of IPL.

While its market share in April this year fell to

29.7% from 32.1% over the same month last

year, rival Coca-Cola increased its share to

48.3% from 45.8%.

Desi brands, say FMCG analysts, not only have

their finger on the pulse of regional flavor and

taste, they also pip global biggies in giving more

margin to the local retailers.



domestic fried chicken brand

Chennai-based Asvin Simon, an engineering

graduate launched a food-based enterprise

Bangs Fried Chicken, in June 2009 after his IT

venture in 2005.


IndiaNews


Processed Foods/

Bio Fuels



domestic fried chicken brand (Contd)

The pricing and taste of Bangs worked, and in

the first year, the venture generated a turnover

of nearly INR 6 mio. By 2010, Bangs set up

seven more outlets in Chennai. "Our model was

simple. We would take a prime place with low

overheads on lease, check the business potential

and start operations. So if the business did not

generate business, we would close it down and

shift”, explains Simon.

Today, Bangs Fried Chicken has presence in 13

states, with around 40 outlets, and only one

kiosk in Chennai. Along the way, the menu has

also been expanded to include sandwiches,

pastas, salads and desserts. The company's

current turnover is INR 20 crore, with plans to

expand the footprint overseas. "A few months

ago, we launched our first overseas outlet in

Doha, Qatar”, he says.


TPG, Advent join race for acquiring

Tirumala Milk

French dairy giants Danone, Lactalis and buyout

private equity firm TPG Capital have made non-

binding offers to acquire a controlling interest in

Hyderabad based Tirumala Milk Products

valued at over INR 2 000 crore, said people

briefed on the matter.


TPG, Advent join race for acquiring

Tirumala Milk (Contd)

Tirumala Milk, in which private equity investor

Carlyle holds 20% stake, has mandated

Barclaysto find a suitor for the business. Other

buyout funds like Advent International too have

met with the company to evaluate an offer said

sources cited earlier.

Tirumala supplies 1.2 mio litres of milk daily,

riding on the strong procurement and

distribution network in Andhra Pradesh,

Karnataka and Tamil Nadu. The company, with

annual sales of about INR 1 500 crore, is among

the top three private dairy operators in the

southern states along with Hatsun and Heritage.

The three offers have moved to the next round

despite coming below the asking price of

INR 2 000 crore. The company will provide

more financial and operational details for the

suitors to make a binding offer in the next

90 days.



space with 3 stores in 3 cities

Pinkberry, one of the world’s leading frozen

yogurt retailers, has expanded into India – its

19th global market – with the opening of an

outlet each in three cities – Mumbai, Bengaluru

and Chennai – on the same day.


http://timesofindia.indiatimes.com/topic/Barclays

http://timesofindia.indiatimes.com/topic/Barclays

IndiaNews


Processed Foods/

Bio Fuels



space with 3 stores in 3 cities (Contd)

Pinkberry will join India's booming restaurant

sector as a destination for Indians to experience

its high-quality frozen yogurt with its signature

light and refreshing taste and clean finish. It will

introduce its new fresh, not frozen strained

yogurt platform, including fresh yogurt bowls

and lassis prepared with locally-relevant recipes.

Pinkberry and JSM Corporation worked

together to authentically regionalise the menu

with locally-relevant flavors, recipes and

toppings. (fnbnews.com 08 July 2013)

Market in India shifting towards

value-added or functional

confectionery

The market in India is shifting towards

value-added confectionery also called functional

confectionery, which, in layman's terms, is

candy that not only tastes good, but is also a

healthier alternative, according to

Pravin Kulkarni, General Manager, Parle

Products.


Market in India shifting towards

value-added or functional

confectionery (Contd)

He explained, “In the coming years, consumers

can expect a number of innovative offers in

stores. We're looking at a larger portfolio in the

confectionery space now, comprising new

flavors, formats, etc. We launched fruit jellies

christened Fruit Drops, which contain real fruit

juice; and Londonderry, a lacto candy which is

currently available in a single flavor. We have,

in fact, positioned it as Alpenliebe's (a Perfetti

Van Melle flagship brand) competitor.

Incidentally, Londonderry is a city in Ireland”.

The brand portfolio of Parle, a USD 1 bio

company, includes Melody; Mango Bite; Chox;

Kaccha Mango Bite; Poppins; Clovemint; 2-in-1

Eclair; Kismi; Kismi Gold; Kismi Toffee Bar;

and Orange Candy.



Ferrero Rocher

Nestle will soon launch its premium chocolate

brand Alpino in India to take on Italian brand

Ferrero Rocher and Cadbury's Toblerone in the

country. It will also be priced similar to Ferrero

at INR 30 for a pack with two chocolate balls.


http://economictimes.indiatimes.com/topic/Ferrero-Rocher

http://economictimes.indiatimes.com/topic/Ferrero-Rocher

IndiaNews


Processed Foods/

Bio Fuels



Ferrero Rocher (Contd)

Ferrero India — which sells Nutella spread,

Ferrero Rocher chocolate and Tic Tac breath

mint in the country — grew 30% by adding

INR 80 crore year-on-year to its revenues of

nearly INR 341 crore in the year ended August

2012. Nestle with 21% market share and Ferrero

with 6%, in the INR 5 562-crore chocolates

market in India.

Experts feel that while Nestle has primarily

focused on mass end with brands such as

KitKat and Munch, most of the recent launches

in the segment have been in niche and premium

segment.


Japan's luxury chocolate maker Royce


business

Japan's luxury chocolate maker Royce will

make its India entry by opening a flagship store

at Mumbai's high-street Palladium Mall this

weekend at a time when consumers are slashing

spends on discretionary products.

Officials at Royce said: “Royce sells a

120-gram box of chocolate for INR 995 on an

average — say initial market tests have shown a

ready market for super-premium gourmet

products”.


Japan's luxury chocolate maker Royce


business (Contd)

Royce, a Japanese cult brand of fine chocolates

that debuted in 1983, has inked a distribution

tieup with fine foods and luxury gourmet firm

Burgundy Hospitality in India. It plans to set up

20 Royce stores over the next three years in

select locations.


Parag Food eyes joint ventures to

expand further in North

Parag Milk Foods Pvt Ltd, which sells dairy

products under Go and the Govardhan brand, is

eyeing joint ventures with local companies to

expand its footprint in the north Indian market.

According to Devendra Shah, Chairman of

Parag Foods, through the proposed joint

ventures, the company plans to manufacture

fresh dairy products, such as curd, paneer,

yogurt and flavored milk among others. The

company had been selling about 1.8 kt cheese

every month and is looking to enhance its

cheese-making capacity by about 50%.


http://economictimes.indiatimes.com/topic/market-share

http://economictimes.indiatimes.com/topic/Royce

IndiaNews


Processed Foods/

Bio Fuels


Parag Food eyes joint ventures to

expand further in North (Contd)

Parag is also looking at marketing whey, a

by-product obtained while manufacturing

cheese, as a nutritional supplement in a big way,

after converting it into a powder form by using

driers. (thehindubusinessline.com 13 July 2013)

Indian minister pushing for sugar and

oil to work better together on ethanol

In India, the Minister of Petroleum & Natural

Gas Dr. M. Veerappa Moily directed PSU Oil

Marketing Companies (OMCs), at a meeting of

CMDs and Directors (Mktg) of OMCs and

ISMA, to make all efforts for expediting

delivery of already procured ethanol. He also

asked them to expeditiously procure an

additional quantity of ethanol through fresh

tenders to meet the requirement of 5%

mandatory Ethanol Blended Petrol (EBP)

programme.

The Minister had called the meeting of OMCs

and Indian Sugar Mills Association (ISMA) to

expedite procurement and the delivery of

ethanol for the EBP programme as per CCEA

decision taken in a meeting held on 22.11.2012.

The Minister observed that against a

requirement of 1 bio liters ethanol per year, the

OMCs have so far finalized procurement of

around 400 mio liters of ethanol for next twelve

months. To meet the balance requirement,

OMCs are planning to float another tender in

July for the procurement of ethanol.

(biofuelsdigest.com 01 July 2013)

Ethanol blending to save INR 6 a

litre for oil companies: Sugar mills

Sugar mills say oil marketing companies

(OMCs) can indeed save INR 6 for every litre of

petrol sold if ethanol is blended with it,

contradicting the OMCs' suggestion that

blending will lead to costlier fuel.

In a letter to the ministry of petroleum, Indian

Sugar Mills Association (ISMA), a sugar

industry lobby, has said oil companies are

reluctant to buy ethanol from domestic

producers which are capable of meeting 53% of

their annual requirement and which will give

savings to OMCs of around INR 6 per litre.

Further, a supplementary domestic tender for

additional supplies from October-November

2013 could fulfil most of the OMCs' balance

requirement”, said the letter.

Prices offered by domestic producers are in the

range of INR 38–49 per litre. The price of

imported ethanol is around INR 70–90 a litre.

Sugar mills are requesting the government that

OMCs procure a major volume from domestic

sources and the rest from abroad. The Cabinet

Committee on Economic Affairs has made 5%

ethanol blending mandatory in petrol sold after

30 June.

(economictimes.indiatimes.com 05 June 2013)

IndiaNews


Bio Fuels /

Supply Interviews


Trials on coconut biofuel begin

IIT Madras has begun experimental trial of

using coconut oil-based biofuel for running

automobile engines. The trials will explore the

possibility of using a mixture of biofuel derived

from coconut oil and diesel. The results will be

available after a three-month trial, according to

officials of Coconut Development Board, who

are associated with the project.

Preliminary tests by a Kochi-based institution

have indicated the prospects of utilising biofuel

derived from coconut oil as a fuel for

automotives. (thehindu.com 16 June 2013)

Supply Interview with Naturite Agro

Products Ltd

Company Address:

No.3-4-508,

Street No.10, Barkatpura

Hyderabad – 500027

Andhra Pradesh

India

Tel: +91 98665 19995

Fax: +91 40 2756 4884

www.naturite.co.in

Since the year 1990, Naturite Agro Products

Ltd. is in the market of manufacturing,

supplying and exporting a wide range of high

quality spice oils and oleoresins.

The company manufactures capsicum

oleoresin, pure capsicum and paprika oleoresin.

Capsicum and paprika oleoresins are more in

demand. The monthly production of both these

spice oleoresins put together is 50t.

Out of the total production, the company does

60% processing job for other suppliers, and the

remaining is for in-house production. Of that

40% production, 25% is exported to U.S.A and

Japan and the remaining is for the Indian

market. The company sells 1% capsicum

oleoresins for INR 175/kg and 10% capsicum

oleoresins at INR 1750/kg. Paprika oleoresins

is sold at INR 600/kg for 4000 CU. The usage

of these ingredients is more in the industrial

sector than the domestic market as people still

prefer fresh spices compared to oleoresins.


IndiaNews


Supply Interviews


Supply Interview with Naturite Agro

Products Ltd (Contd)

The company has not shown any increase

in production for the past few years. It has

stopped manufacturing turmeric and curcumin

oleoresins. The interviewee is trying to revive

the company.

The company has its own in-house laboratory

for the quality checks. The end users are the

pappad and the pickle manufacturers. According

to the interviewee the fresh spices are the only

competitive ingredients for oleoresins. Since the

company is in Andhra Pradesh, it has no

problems related to the availability of raw

materials - capsicum and chillies. The company

does not use GM raw materials.


Oleoresins

Company Address:

VIII/946, Jawahar Road

Navaratna House

Kochi- 682 002

Kerala

India

Tel: +91 484 3010401

Fax: +91 484 2226542

www.universaloleoresins.com

Universal Oleoresins was established in 1981 at

Cochin. It is one of the leading manufacturers

and exporters of fine quality spice oils,

oleoresins, natural colors and spice drop range

of instant spice extract.



Oleoresins (Contd)

The demand for these ingredients has shown a

gradual increase in the Indian market which is

approximately 10–15%. The reasons are

convenience in usage and storage of these

ingredients. Comparatively these ingredients

are easily available now due to modern

technologies being used in the conversion of

oleoresins.

The company manufactures all spice based

oleoresins. Derivatives (oleoresins) of red and

green chilli, black pepper, cumin and garlic

are more in demand. The food industry is the

major sector which consumes about 50% of

these ingredients and the remaining is used by

the pharma, health and hygeine, color and

aroma industries.

The demand for these ingredients in the global

market has shown a growth by 10%. The

company’s 70% of the produce is exported to

Europe and U.S.A.

Standard worldwide quality check parameters

are followed by the company. Synthetic flavors

and essences is the main competitive ingredient

as it is much cheaper than the oleoresins which

are costlier as it is derived from pure spices.

The cost of oleoresins depends on the price of

the raw material at that particular time and the

volume of the produce asked for by the demand

companies. It has no problem in procuring the

raw materials and the company does not use any

GM materials.

IndiaNews




MTR Oats Upma

Company name: MTR

Category: Breakfast Mix

Price: Single serve pack 45 gm – INR 10,

Couple pack 100 g - INR 20, Family pack

180 g- INR 35

Ingredients: Whole Oats grits (40%), semolina,

edible vegetable fat, bengal gram dal, salt,

spices, curry leaves, lemon powder and

anticaking agent (INS 551)

MTR, the No.1 player in Authentic Indian

Breakfast space, launches for the 1st time in

India, an innovative way to consume Upma with

the goodness of Oats.

MTR promises to make breakfast time

enjoyable and a tasty affair with this launch and

with an easy 4 step recipe, Oats Upma is ready

in less than 5 minutes . Each bite of the Oats

Upma contains whole oats (40%) and wheat.

The goodness of the products lies in the fact that

it is made of 100% natural ingredients.

(chefatlarge.in)

The Cocoa Trees- Goldkenn Crystal

Gold Bar, Swiss Dream Napo Box and

Hershey’s Kisses Tin

Company name: The Cocoa Trees

Category: Confectionery

Price: 200g bar, priced at INR 1395

Goldkenn Crystal Gold Bar: Wonderfully

crafted Swiss milk chocolate praline with a dash

of cocoa sprinkles, encased in a refined gold and

transparent crystal effect exterior.



Price: 300g box costs INR 695


IndiaNews




The Cocoa Trees- Goldkenn Crystal

Gold Bar, Swiss Dream Napo Box and

Hershey’s Kisses Tin (Contd)

Swiss Dream Napo Box: Crafted with superior

ingredients having the finest taste, bringing the

experience of an authentic Swiss lifestyle

through the chocolates.



Price: 240g tin costs INR 995

Uniquely shaped and deliciously tender

Hershey’s Kisses milk chocolates in a

classically decorated tin, with a rustic vintage

charm.

Singapore based brand, The Cocoa Trees has

recently launched internationally renowned

products from celebrated brands, to satisfy the

sweet tooth of the Indian audience. The

chocolate boutique has added three renowned

premium products Goldkenn Crystal Gold Bar,

Swiss Dream Napo Box and Hershey’s Kisses

Tin to their vast repertoire.

(lemonchutney.com)

Mango flavored Vodka

Company name: Smirnoff

Category: Alcoholic beverage

Price: Price range varies from INR 380–960

Smirnoff has launched its new mango flavored

vodka, especially to cater to the Indian

taste. This is the first ever mango vodka which

has been launched in the country.

(indiahospitalityreview.com)

Nalen Gur Ice Cream

Company name: Pabrai's Fresh & Naturelle

Category: Frozen Dessert

Price: INR 89+taxes


IndiaNews




Nalen Gur Ice Cream (Contd)

Nalen Gur is a jaggery which is in liquid form

and is made from the sap of the Date Palm or

Khajur tree; which is native to West Bengal.

The Nalen Gur ice cream is made with this

jaggery and the finished ice cream has a special

crumble which gives it a taste and texture –

unlike any other ice cream.

IndiaNews


Tradeshows and Events


Trade Events Date Venues Website

Goa Food &

Hospitality Expo

08 Aug -11 Aug

2013

Taleigao Community

Centre, Goa, India

http://www.biztradeshows.com/goa-food-

hospitality-expo/

Food Tech India -

Kolkata

16 Aug-18 Aug

2013

Milan Mela Complex,

Kolkata, India

http://www.biztradeshows.com/food-tech-

india/

India Foodex-

Bangalore

23 Aug-25 Aug

2013

Bangalore International

Exhibition Centre (BIEC),

Bengaluru, India

http://www.biztradeshows.com/trade-

events/india-foodex-bangalore.html

Foodpro 30 Aug-01 Sep

2013

Chennai Trade Centre,

Chennai, India

http://www.biztradeshows.com/foodpro/

Aahar The

International Food

Fair Bengaluru

06 Sep-08 Sep

2013

Bangalore KTPO Trade

Centre, Bengaluru,India

http://www.biztradeshows.com/aahar-food-

bengaluru/

International Natural

Products Expo

20 Sep-22 Sep

2013

Bangalore KTPO Trade

Centre, Bengaluru, India

http://www.biztradeshows.com/international-

natural-products/

Annapoorna - World

of Food India

23 Sep-25 Sep

2013

Bombay Convention &

Exhibition Centre

(BCEC), Mumbai, India

http://www.biztradeshows.com/world-food-

india/

Food Ingredients

India

03 Oct-05 Oct

2013

Bombay Convention &

Exhibition Centre

(BCEC), Mumbai, India


events/food-ingredients-india.html

Food Technology

Show

06 Oct-09 Oct

2013

India Expo Centre and

Mart, Greater Noida,

India


events/food-technology-show.html

Dairy Fest 25 Oct-27 Oct

2013

Indian Institute of

Sugarcane Research,

Lucknow, India


events/dairy-fest-lucknow.html

Food Fest 25 Oct-27 Oct

2013

Indian Institute of

Sugarcane Research,

Lucknow, India


events/food-fest-lucknow.html

Agri Food Processing

Industry Products

Expo

14 Nov-17 Nov

2013

Brindaban Garden,

Guwahati, India

http://www.biztradeshows.com/afpipex/

http://www.biztradeshows.com/goa-food-hospitality-expo/

http://www.biztradeshows.com/goa-food-hospitality-expo/

http://www.biztradeshows.com/food-tech-india/

http://www.biztradeshows.com/food-tech-india/

http://www.biztradeshows.com/trade-events/india-foodex-bangalore.html

http://www.biztradeshows.com/trade-events/india-foodex-bangalore.html

http://www.biztradeshows.com/foodpro/

http://www.biztradeshows.com/aahar-food-bengaluru/

http://www.biztradeshows.com/aahar-food-bengaluru/

http://www.biztradeshows.com/international-natural-products/

http://www.biztradeshows.com/international-natural-products/

http://www.biztradeshows.com/world-food-india/

http://www.biztradeshows.com/world-food-india/

http://www.biztradeshows.com/trade-events/food-ingredients-india.html

http://www.biztradeshows.com/trade-events/food-ingredients-india.html

http://www.biztradeshows.com/trade-events/food-technology-show.html

http://www.biztradeshows.com/trade-events/food-technology-show.html

http://www.biztradeshows.com/trade-events/dairy-fest-lucknow.html

http://www.biztradeshows.com/trade-events/dairy-fest-lucknow.html

http://www.biztradeshows.com/trade-events/food-fest-lucknow.html

http://www.biztradeshows.com/trade-events/food-fest-lucknow.html

http://www.biztradeshows.com/afpipex/

IndiaNews


Tradeshows and Events


Trade Events Date Venues Website

Bakery Business Trade

Show

20 Nov-22 Nov

2013

Mumbai World Trade Centre,

Mumbai, India


events/bakery-business.html

Rice Tech Expo Patna 22 Nov-24 Nov

2013

Veterinary College Grounds -

Patna, Patna, India

http://www.biztradeshows.com/ricetech-

expo-patna/

Uppercrust Food and

Wine Exhibition

06 Dec-08 Dec

2013

Mumbai World Trade Centre,

Mumbai, India


events/uppercrust-foodwine-show.html

Dairy Universe India 10 Dec-12 Dec

2013

Gujarat University Exhibition

Hall, Ahmedabad, India


events/dairy-universe-india.html

Sweet and SnackTec

India

10 Dec-12 Dec

2013

Gujarat University Exhibition

Hall, Ahmedabad, India


events/sweet-snack-factory-india.html

Fine Food India 11 Dec-13 Dec

2013

Pragati Maidan, New

Delhi, India

http://www.biztradeshows.com/fine-

food-india/

Food Talk India 22 Dec-25 Dec

2013

Shastri Maidan, Rajkot, India http://www.biztradeshows.com/food-

talk-india/

http://www.biztradeshows.com/trade-events/bakery-business.html

http://www.biztradeshows.com/trade-events/bakery-business.html

http://www.biztradeshows.com/ricetech-expo-patna/

http://www.biztradeshows.com/ricetech-expo-patna/

http://www.biztradeshows.com/trade-events/uppercrust-foodwine-show.html

http://www.biztradeshows.com/trade-events/uppercrust-foodwine-show.html

http://www.biztradeshows.com/trade-events/dairy-universe-india.html

http://www.biztradeshows.com/trade-events/dairy-universe-india.html

http://www.biztradeshows.com/trade-events/sweet-snack-factory-india.html

http://www.biztradeshows.com/trade-events/sweet-snack-factory-india.html

http://www.biztradeshows.com/fine-food-india/

http://www.biztradeshows.com/fine-food-india/

http://www.biztradeshows.com/food-talk-india/

http://www.biztradeshows.com/food-talk-india/

IndiaNews


Commodity Prices


Commodity Price Range (INR) Commodity Price Range (INR)

Coffee (per kg) - Karnataka Dairy (per kg) - Delhi

Arabica Cherry-raw 68-72 Milk powder 171

Arabica parchment-raw 127-132 Oil & oilseeds (per kg)

Robusta Cherry -raw 61.5-64 Coconut 40.0-45.0

Robusta parchment-raw 126-127.5 Cotton seed 36.0-39.0

Tea (per kg)-Kerala Mustard 30

Tea 110-115 Gingelly (Black) 42.0

Dry Fruits Coconut oil 70.0-75.0

Cashew nuts 50.0-70.0 Linseed 42

Grains & Pulses (per kg) Groundnut seed 52.0-70.0

Bengal gram 30 Sunflower seed 32.0-34.0

Black gram 43 Castor seed 30.0-33.0

Green gram 44 Soybean 36-40

Horse gram 35 Mustard oil 94 - 102

Ragi 15 Sugar –Delhi (per kg)

Tor dal 61-61.75 Sugar 32-36

Paddy 12.5 Spices & Condiments (per kg)

Jowhar Sorghum (Hybrid price) 15 Turmeric 40-48

Rice fine 41.0-48.0 Cumin seeds 112-123

Wheat 13.5 Black pepper 325-330

Maize 11.75 Cardamoms 475-675

Bajra (Pearl Millet) 11.75 Coriander seeds 34-100

Barley 9.8 Dry ginger 100-125

Peas (wet) 10.0-35.0 Methi seeds 30-50

Red Grams(Whole) 43.0-44.0 Green chillies 9-50

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