BRIEF OVERVIEW

About Quality Council of India

▪ Set up in Jan 1997 by theGovernment of India withASSOCHAM, CII & FICCI

▪ QCI is an independent autonomousorganization. The Department ofIndustrial Policy and Promotionunder Ministry of Commerce &Industry is the Nodal point.

▪ QCI was established as the NationalAccreditation body and to lead aquality movement by undertaking aNational Quality Campaign

▪ Chairman of QCI is appointed bythe Hon’ble Prime Minister of India

▪ QCI gets nominated by variousCentral Ministries/Departments andState Governments for variousprojects due to its role in quality andaccreditation.

About QCI QCI Leadership

▪ Alumnus - IIT Bombay,Harvard Business School

▪ 34 years at McKinsey & Co - 14 yearsas Managing Director of McKinseyIndia

▪ Appointed Chairman of QCI byhonorable Prime Minister of India in2014

• Alumnus – BHU,Western University (Canada)

• Former Vice Chancellor, ShardaUniversity, Dean Punjab TechnicalUniversity, Director, IGNOU

• Appointed as Secretary General QCIin 2014

Organizational Structure

QCI is the National Accreditation Body of India

Special ProjectGroup

Quality PromotionAccreditation

National Boardfor QualityPromotion

(NBQP)

NationalAccreditation

Board forTesting andCalibration

Laboratories(NABL)

NationalAccreditation

Board forHospitals and

HealthcareProviders

(NABH)

NationalAccreditation

Board forEducation and

Training(NABET)

NationalAccreditation

Board forCertification

Bodies(NABCB)

Secretariat

Council

Governing Body

Project Planning andImplementationDivision (PPID)

Projects Analysisand Documentation

Division (PADD)

Zero Defect and ZeroEffect Division (ZED)

Secretary General

4*

Dr. Prabodh Halde. Regulatory Head - Marico25th April, 2020

* Prepared by Dr Prabodh S Halde for FOSTAC 5

Agenda

General Introduction

Covid-19

Food Industry Impact

Way Forward

4 topics

90 min of learningsQ&A

One Virus changed the world in 12weeks

6

Jan2020

April2020

EK VIRUSDUNIYAKORUKADETAHAI

Thanks Giving ……….• Doctors

• Nursing/Pharma staff

• Health/Sanitationworkers

• Police staff

• Government officers

• Essential serviceProviders /FoodIndustry

• And all those who areworking tirelessly forall of us* Prepared by Dr Prabodh S Halde 7

we are Proud of you all

WORLD PANDEMIC

No Year Place ReasonDeath Toll( Million)

1 542 AD EUROPE PLAGUE OF JUSTINIAN 25

2 1346-53 EUROPE/AFRICA/ASIATHE BLACK DEATH( PAGUE)

100 TO 200

3 1852-60EUROPE/AFRICA/ASIA/NORTH AMERICA

THIRD CHOLERAPANDEMIC

1

4 1889-90 ASIA FLU PANDEMIC 1

5 1910-1911 ASIA/AFRICASIXTH CHOLERAPANDEMIC

8

6 1918 ENTIRE GLOBE FLU PANDEMIC 25 TO 50

7 1956-58 ASIA ASIAN FLU 2

8 1968 Hongkong Flue FLU PANDEMIC 1

9 1976-20 Entire Globe HIV/AIDS PANDEMIC 50

Maslow's Hierarchy Of Needs

* Prepared by Dr Prabodh S Halde 9

SHELTERCLOTHINGSNETFOOD

Food is a Basic

India At A Glance

10

India will be world power inFood & Agriculture by 2020

- John E. Peters, Dr. A.P.J. Abdul Kalam India 2020 Vision for New Millennium

Make in IndiaLess Government

Higher Governance

Food Processing =

Farmer’s Development

▪ Less Processing▪ High wastage▪ No value addition▪ Low shelf life▪ Middle man dependant

▪ Optimum Processing▪ Wastage Utilisation▪ Value addition▪ High shelf life▪ Direct market

12

What has changed in

last 8 weeks

First time In the world’s history

▪ The flights are stopped▪ The Trains are stopped▪ Hotels are closed▪ Cinemas are closed▪ Offices are shuts▪ People are locked down –

97% population is at Home

What has changed in

last 8 weeks

▪ We have shifted to healthyhabits

▪ Maximum sell is for Foods▪ E meetings /Webinar▪ We can work from home▪ We can work without

domestic help▪ Social distancing▪ Hygiene is New Normal

* Prepared by Dr Prabodh S Halde 13

Innovations during World Wars

▪ Sanitary Towels▪ Sun lamps▪ Tea Bags▪ The wristwatch▪ Vegetarian sausages▪ Zip▪ Stainless steel▪ Air Lines / Pilot Navigation

14

1914-1918 10 m

illion

dea

th

1941-45

▪ Penicillin▪ Concept of computers▪ Machine processing▪ Ball Pen▪ Photocopy▪ Ready to Drink Coffee – Nescafe▪ Carbonated Beverages – 5 Cent

Coke

▪ Jet engine▪ Canning technology▪ Process food Industry

60 m

illion

dea

th

Strengths of India

15

2nd largest arable land in the world- Diverse agro-climatic zones

- Round the year sunshine

- Potential to cultivate a vast range ofagricultural products

- Large marketable surpluses and abundantraw material for processing

- Pool of skilled manpower

Strengths of India

16

17

18

Food Processing Sector

Fruits &vegetableprocessing

Dairy

Meat &Poultry

GrainProcessing

Marine

Oils & Fats

HealthSupplement

Beer andAlcohol

ConsumerProductsBiscuitsSnacks

beverages

Did we know this?

Largest taxi co., NoCars

Most popular media,

No Content

3 billion users/dayNo Server

Largestaccommodation

provider, No Real Estate

Sale of 200 milliondevices, no factory

Most valuable retailer,

No inventory

Disruptive Innovative Collaborative

20

Where are these companies today?

▪ AMBBASADOR CAR

▪ KODAK FILM

▪ PAGER

▪ NOKIA

▪ HMT Watch

▪ Dukes

▪ Rawalgaon Chocolates

▪ Coke▪ IBM▪ TATA▪ Godrej▪ Nestle▪ Cadbury▪ Mercedes▪ Merck

GroupA

GroupB

21

Structure of Food processing Industry

25%Organized

33%Small Scale Industries

42%Unorganized

Demand Drivers for food Processing

22

FoodProcessing

DemandDrivers

Growing nuclear familiesand working women

Rising demand forfunctional food (oatmeal,

etc)

Increasing modern tradeformats and private label

penetration

Increasing urbanization– lifestyle and aspirations

Changing demographics– Rise in disposable

incomes

Increasing spending onfood products

GDP Vs Population

70% People contributes lessthan 20% in GDP

23

Food processing still at a nascent stage

Level of processing

(Fruits & Vegetables)

❑ USA - 80 %

❑ France - 70 %

❑ Malaysia- 80 %

❑ Thailand- 30 %

❑ India - 10%

Level of Processing(Perishable products)

Organized Unorganized Total

❑ Fruits / Vegetables 1.3% 0.8% 2.2%

❑ Milk /milk products 13% 22% 35%

❑ Buffalo Meat 21% - 21%

❑ Poultry 6% - 6%

❑ Marine Products 8% 15% 21%

Covid 19 will make this

15% In next 2 years

How Big is Food Market – Growth factors

Indian Population

120 CrTotal Families

40 Cr

Monthly FoodExpense

Rs 3000 /family

Total domestic

demand 120000Cr / M

Wellness and Hygiene is new normal

Preference for food over medicines

Food and Nutrition goes in hand

Shift towards healthy habits

Nutraceuticals, Herbal, Ayurveda

High demand for traditional foods

Immunity boosting – New Mantra

26

Organic, AllNatural /

TraditionalVegan

E Platformfoods

Exports

CONVENIENCE

RTE, RTC, On thego foods

Immunity foodsMental health

Cut VegetablesHome Cooked

foods Packed Vs LooseFunctional food,

nutraceuticals

Post Covid-19 Indian Food Trends

Safe /NewPackaging

27

To

p 1

0 Im

mu

no

-b

uild

in

g Fo

od

s

India’s Home Immunity Booster

* Prepared by Dr Prabodh S Halde 28

• Mustard seeds.• Cumin seeds.• Turmeric powder.• Red chili powder.• Coriander-

cumin powder.• Homemade garam

masala.• Amchur (Dried mango

powder)

HOME MASALA BOX

29

AY

US

H G

uid

elin

es

Coconut oil and Immunity

* Prepared by Dr Prabodh S Halde 30

Mental Health – Turmeric Health

32 6.7

Country PopulationAlzimerPatients

% AffectedPopulation

USA 320 5.8 1.81INDIA 1300 4 0.31

UK 67 0.8 1.19

130

58 8 40

1.8 1.2 0.3

USA

UK

INDIA

Population In CR

Alzimer P. in Lakhs

% Alzimer P.

Food Processing will adopt new changes

• New Innovative Techniques• Digitalisation• More mechanisation• Artificial Intelligence• Bid data• Machine learnings• Core strength - Specialisation• 3rd party Packing• Manufacturing Vs Marketing

32

Export will be a big opportunity

China’s loss willbe INDIA’S GAIN

China Vs India

Export Trade China India

USD Million 13460 2657

INR CR 94220 18599

34

▪ China’s Export is 5 times of Indiain Processed food

▪ Even if India gets 20% of Share

Additional 20,000 CrProcessed foods exportpotential

India’s Opportunity

Particular China India

Vegetables Prepared, Not Frozen 1551.95 38.57Food preps., n.e.s. 1533.54 276.60

Spices, Condiments, Sauces 1039.21 54.61

Edible parts of plants (prepared / preserved) 961.35 33.14

Sugar confectionery other than chewing gum 823.14 102.53

Vegetables (cooked / Uncooked) 791.43 13.95

Dried vegetables (cut / sliced) 677.36 25.05

Pasta 660.11 13.42

Ground-nuts 649.98 39.54

Nuts (excl. ground-nuts) 511.75 69.91

35

Prepared foodsDried Vegetables

PastaNuts

Current ( COVID 19)Challenges in Food Industries

36

Labour availability

Distribution

Transportation

Retailing

Supply of RM/PM COVID 19

Government is supporting in full swing

37

Ministry ofConsumer affairs

MHA

FSSAI /MH /AYUSH

Ministry ofIndustries

Ministry of FoodProcessing

FP Industries will shine again

What is Start-up ?

• Start-up is a– Registered firm/

Business (NoProprietary firms)

– Less than 7 years ofestablishment.

– Less than 25 Cr Turnover 207-18

• https://www.startupindia.gov.in/content/dam/invest-india/homepage/home-india-map.png

38

Start-up Statistics

* Prepared by Dr Prabodh S Halde for FOSTAC 39

Less than 8 Percent

Total Startup (36377)Startup Recognition: 15417

Funding Support: 129

Idea to Start

Online Sale

DigitalisationModern

Trade

Home Delivery

RuralMarket

ExportPotential

COVID 19 will

Change the way

we do business

Today’s R&D

Consumer mappingUn spoken needsMarket surveys

ExtrusionBakingLow GI

42

Technology Forward Ideas

Cutvegetables

Sonpapadi

Masaloats

Dosa-Batter

Panipuri

Packed Dahi andRoti

Tetra packtechnology

Pouch fillingtechnology

43

Some Consumer Backward Ideas

GranulaBar

Flavoredwater

CornFlakes

* 44

Health SupplementsSupplement to normal diet

NutraceuticalsIsolates/extracts providing

health benefit

FSDUSupplement dietary reqt

arisen due to healthcondition

FSMPDietary management of

patients

Probiotic FoodsFood containing microbes

beneficial to human health

PrebioticsFood with prebiotic

ingredients

Specialty FoodsFood containing plant or

botanical ingredientsconferring health benefit

Novel FoodsNo history of safety /new

technology

FOODSGOVERNED

FSSAI brought new opportunities in

Nutraceutical

46

But who will Sustain?

▪ Good Financial controls- Low capital

▪ R&D focus- Outsourcing

▪ Strong consumer understanding

▪ Early movers

▪ Playing on strengths

▪ Working on core

* Prepared by Dr Prabodh S Halde for FOSTAC 47

Innovative

Innovative

Innovative

Innovation = Success

Future is Industry & Academia Synergy

Innovation

Creativity Commercialisation= +

IndustryAcademia

Successful Entrepreneurs▪ Who can see the future▪ Creative and Innovative▪ Position in shifting or new markets▪ Create new products▪ Create new processes▪ Create new delivery▪ Create New Markets▪ Take risk

Unsuccessful Entrepreneurs▪ Blame gamer▪ Self marketer▪ Poor Managers▪ Low work ethic▪ Inefficient▪ Failure to plan and prepare▪ Poor money manager

While

Re–Opening

the business

* Prepared by Dr Prabodh S Halde for FOSTAC 51

Follow FSSAI SOPhttps://fssai.gov.in/

upload/uploadfiles/files/Guidance_Note_COVI

D_15_04_2020.pdf

Way

Forward

Succes

s means

RiskTakingAbility

Positive

participation

Stay

United

Jugad

approach =

Innovation

INNOVATIVE

CREATIVE

MIND AT HOME

HOPES OF GOOD

TOMORROW

Conclusion

India has goodagricultureoutpour

Agriculture =Food Processing

India has gooddomestic demand

China’s lossIndia’s gain

Innovation isMUST

Health &Wellness is newNORMAL

Food Industry has excellentfuture post Covid-19

FP Startup Goodscope

Dr. Prabodh HaldeRegulatory Head Marico Ltd

AIFPA Chairman MaharashtraEx President AFST India

prabodh.halde@marico.com

+91 9820278746

https://www.linkedin.com/in/dr-prabodh-shirish-halde-1802523/?originalSubdomain=in