PARLE QUALITY SYSTEM AND HR TECHNIQUES - Presentation Transcript

PARLE QUALITY SYSTEM & HR TECHNIQUES @ BY:- SUNIL DHANKHAR ROLL.NO. 0810155 HSB HISAR HARYANA INDIA

INTRODUCTION

Bakery industry in India is the largest of the food industries with annual turnover of about Rs.3000 crores. The biscuits are becoming quite popular in rural areas as well. Nearly 55% of the biscuits are

consumed by rural sectors.

The biscuit industry in India comprises of organized and unorganized sectors. The FBMI represents the organized biscuit industry

consisting of small scale, medium and large biscuit manufacturers located in all zones and all states of the country.

Major brands of biscuits are:- Britannia, Parle, Priya Gold, Elite, Cremica,

Dukes, Anupam, Horlicks, Craze, Nezone, besides various regional/ State brands.

COMPANY OVERVIEW

Parle Biscuits Limited is a subsidiary of the Parle Products Limited, Mumbai, which is a closely held

company run by the Chauhans. Today Parle enjoys a 40% share of the total biscuit market and 15% share of the total confectionery market in India.

Plants of Parle Biscuits Pvt Ltd are at:

Bahadurgarh (Haryana)

Neemrana (Rajasthan)

Rudrapur (Uttranchal)

Nasik

The production capacity of Bahadurgarh unit per month is-

Parle-G 3300 Metric Tones

Krackjack 1500 Metric Tones

Monaco 1200 Metric Tones

The plant also has a Auditorium and viewing gallery, which is used during the visits of the school children. A retail shop at the plant provides Parle products at MRP rates. The total

turnover of Parle Biscuits Pvt Ltd is around 4000 crores.

PARLE-G :THE EVOLUTION “ QUALITY, HEALTH AND GREAT TASTE”

PARLE QUALITY SYSTEM

Hygiene is the precursor of every process at Parle. From husking the wheat and melting, the sugar to delivering the final products to the super market and store shelves nation wide care is taken at every step to ensure the best product with long lasting freshness. Every batch of biscuits and

confectionery are thoroughly checked by the expert staff, using the most modern equipments hence ensuring the same perfect quality across the nation and abroad

PARLE PRODUCTS – ‘AN EPITOME OF QUALITY’

All Parle products are manufactured under the most hygienic conditions. Great care is exercised in the selection & quality control of raw materials; packaging materials & rigid quality standards are ensured at every stage of the manufacturing process. Every batch of biscuits & confectioneries are thoroughly checked by expert staff, using the most modern equipment.

All these factories are located at strategic locations, to ensure a constant output & easy distribution. Each factory has state-of-the-art machinery with automatic printing & packaging facilities.

HACCP

Hazard Analysis and Critical Control Point is systematic preventive approach to food safety and pharmaceutical safety that addresses physical, chemical, and biological hazards as a means of prevention rather than finished product inspection. HACCP is used in the food industry to identify potential food safety hazards.

The seven HACCP principles are included in the inetrnational system ISO 22000. this standard is a complete food safety management system incorporating the elements of prerequisite programmers for food safety, HACCP and quality management system which together form an organization's Total Quality Management

HR TECHNIQUES ADOPTED AT PARLE….

5S

KAIZENS

SQC

TQM

POKA-YOKE

5S

1S:- SEIRI

2S:- SEITION

3S:- SEISO

4S:- SEIKETSU

5S:- SHITSUKE

KAIZENS

Kaizen , a Japanese term that basically translates to 'continuous improvement' or 'change to become good‘. Kaizen is aimed at producing more and more value with less and less wastes (higher efficiency), attaining better working environment, and developing stable processes by standardization.

TQM

Total Quality Management (TQM) is a business management strategy aimed at embedding awareness of quality in all organizational processes.

Total: Involving the entire organization, supply chain, and/or product life cycle

Quality: With its usual definitions, with all its complexities

Management: The system of managing with steps like Plan, Organize, Control, Lead Staff, provisioning and organizing.

POKA-YOKE

Poke Yoke is a Japanese technique which means mistake proof system. “Yokeru” means to avoid and “Poka” means inadvertent errors. Poka Yoke methods are simple concept for achieving this goal.

DATA ANALYSIS

% of workers who strongly agree to the following statements

% of workers who think rejection can be fully eliminated

According to workers which among the following factors are main cause of wastage

%of workers who think Kaizens has reduced the wastage

% of workers thinking Kaizens are important

Deptt wise result of PQS quiz

Also a PQS test was taken of workers and their average score was 75.86%

SUMMARY

The company has effectively implemented the HR techniques in the plant.

The workers and employees are well aware of the concepts of these techniques.

The HACCP applied in the plant is working in its most effective manner.

The wastage in the plant is least and the production team and the workers try their level best to reduce it even more.

The wastage of the biscuits that fall on the floor is minimized by the use of trays under the machines.

The use 5S in the plant has helped in keeping the plant well and tidy.

The under baked or over baked biscuits are reprocessed by sending them back to the chura store and thus minimizing the wastage.

The Kaizens given regularly by the employee and the workers has also helped in reducing the wastage and increase the effective production.

The total wastage of the plant is sent to the poultry farms and it is around 1 truck in 6 months.

All the workers have positive response towards the techniques and methods being adopted by the plant.

Suggestions

1) The company should focus more over the application of the Kaizens.

2) The drop down belt at the Krackjack biscuit must be replaced by the straight belt as used in Monaco since it costs least wastage.

3) The company may also use the other HR techniques so as to make more effective production like Andon, Six thinking Hats, etc

4) The power cuts that affect a lot to the production and results in wastage must be controlled. Since one power cut of 3-5 seconds wastes at least 10-15 packs of biscuits.

5) Another cause of wastage is machinery breakdown. So regular checks on the machines must be adopted.

6) Some kaizen like cuts in the conveyor belt at Krackjack machine to assure the safety requirements of the operator, a railing of nearly 1 and ½ inches must be put along the sides of the conveyor belt so as to minimize the falling of biscuits during the in line process of the manufacturing, that would also minimize the use of trays under the machines.

Food laws and RegulationsTo meet a country’s sanitary and

phytosanitary requirements, food must

comply with the local laws and regulations

to gain market access. These laws ensure

the safety and suitability of food for

consumers, in some countries; also govern

food quality and composition standards.

The requirement of food regulation may be

based on several factors such as whether a

country adopts international norms

developed by the Codex Alimentarius

Commission of the Food and Agriculture

Organization of the United Nations and the

World Health Organization; good

agricultural and manufacturing practices; or

a country may also has its own suite of food

regulations. Each country regulates food

differently and has its own food regulatory

framework. Usually more than one agency

is involved in food regulations e.g. health

and agriculture, they may have centralized

or regionally controlled food regulations,

and different agencies may be involved in

enforcement activities.

 

Types of food safety and quality standards that apply in most countries: Food Safety and Standards Act

The Indian Parliament has recently passed

the Food Safety and Standards Act, 2006that overrides all other food related

laws. It will specifically repeal eight laws:

The Prevention of Food Adulteration

Act, 1954

The Fruit Products Order, 1955

The Meat Food Products Order, 1973

The Vegetable Oil Products (Control)

Order, 1947

The Edible Oils Packaging

(Regulation) Order, 1998

The Solvent Extracted Oil, De oiled

Meal, and Edible Flour (Control)

Order, 1967

The Milk and Milk Products Order,

1992

Essential Commodities Act, 1955

relating to food

 The Act establishes a new national

regulatory body, the Food Safety and

Standards Authority of India, to develop

science based standards for food and to

regulate and monitor the manufacture,

processing, storage, distribution, sale and

import of food so as to ensure the

availability of safe and wholesome food for

human consumption. All food imports will

therefore be subject to the provisions of the

Act and any rules and regulations made

under the Act.

As a temporary measure, the standards,

safety requirements and other provisions of

the repealed Acts and Orders and any rules

and regulations made under them will

continue to be in force until new rules and

regulations are put in place under the Food Safety and Standards Act, 2006. For

that reason, importers will for some time

have to continue to take into account the

provisions of those repealed Acts and

Orders.

 Prevention of Food Adulteration ActA basic statute (Prevention of Food

Adulteration Act (PFA) of 1954 and the PFA

Rules of 1955, as amended) protects India

against impure, unsafe, and fraudulently

labelled foods. The PFA standards and

regulations apply equally to domestic and

imported products and cover various

aspects of food processing and distribution.

These include food colour, preservatives,

pesticide residues, packaging and labelling,

and regulation of sales. Further details are

available from the Ministry of Health and

Family Welfare. All imported products must

adhere to the rules specified in the Act and

its regulations, including those covering

labelling and marketing requirements. The

PFA focuses primarily on the establishment

of regulatory standards for primary food

products, which constitute the bulk of the

Indian diet.

 PFA rules sometimes appear to be drafted

in a manner that goes beyond the mere

establishment of minimum product quality

specifications, by prescribing recipes for

how food products are to be manufactured.

There is an appeals process for amending

rules, although this is time-consuming. The

Central Committee for Food Standards,

chaired by the Director General of Health

Services, is the decision-making entity

Syrups.

 

Weights and measures

Standards for weights and measures are

administered by the Ministry of Consumer

Affairs, Food and Public Distribution under

the Standards of Weights and Measures Act, 1976 and related rules

and notifications. All weights or measures

must be recorded in metric units and certain

commodities can only be packed in

specified quantities (weight, measure or

number). These include baby and weaning

food, biscuits, bread, butter, coffee, tea,

vegetable oils, milk powder, and wheat and

rice flour.

Shelf lifeAt the time of importation food products are

required to have a valid shelf life, or

residual shelf life, of not less than 60 per

cent of their original shelf life. For more

information, see the relevant notification at

the Government of India Ministry of

Commerce and Industry website.

 

Fruit Products OrderThe fruit and vegetable processing sector is

regulated by the Fruit Products Order, 1955 (FPO), which is administered by the

Department of Food Processing Industries.

The FPO contains specifications and quality

control requirements regarding the

production and marketing of processed

fruits and vegetables, sweetened aerated

water, vinegar, and synthetic syrups.

All such processing units are required to

obtain a license under the FPO, and

periodic inspections are carried out.

Processed fruit and vegetable products

imported into the country must meet the

FPO standards.

 

Meat Food Products OrderRegulations for the production of meat products are covered by the Meat Food Products Order, 1973.The Order:

Specifies sanitation and hygiene

requirements for slaughterhouses and

manufacturers of meat products.

Contains packing, marking and

labeling provisions for containers of

meat products.

Defines the permissible quantity of

heavy metals, preservatives, and

insecticide residues in meat products.

The Directorate of Marketing and Inspection

at the Ministry of Agriculture is the

regulatory authority for the order, which is

equally applicable to domestic processors

and importers of meat products.

  Livestock Importation ActIndia has established procedures for the

importation of livestock and associated

products under the Livestock Importation Act, 1898.

Under the regulations, the import of meat

products, eggs and egg powder and milk

products require a sanitary import permit

from the Department of Animal Husbandry,

Dairying and Fisheries at the Ministry of

Agriculture.

A detailed import risk analysis is carried

out, taking into account the disease

situation prevailing in the exporting country

compared with the disease situation in

India.

 Milk and Milk Products OrderThe production, distribution and supply of

milk products is controlled by the Milk and Milk Products Order, 1992. The order

sets sanitary requirements for dairies,

machinery, and premises, and includes

quality control, certification, packing,

marking and labeling standards for milk and

milk products.

Standards specified in the order also apply

to imported products. The Department of

Animal Husbandry, Dairying and Fisheries

at the Ministry of Agriculture is the

regulatory authority.

 

Essential Commodities Act, 1955: The

main objective of the Act is to regulate the

manufacture, commerce, and distribution of

essential commodities, including food. A

number of Control Orders have been

promulgated under the provisions of this

Act. These are:

 

Standards of Weights and Measures Act, 1976 and the Standards of Weights and Measures (Packaged Commodities) Rules, 1977: The Act

governs sale of packaged commodities and

provides for mandatory registration of all

packaged products in the country.

 

Consumer Protection Act, 1986: The

Act provides for constitution of District

Forum/State/National Commission for

settlement of disputes between the

seller/service provider and the consumer.

The Infant Milk Substitutes, Feeding Bottles and Infant Foods (Regulation of Production, Supply and Distribution) Act, 1992 and Rules 1993: This Act

aims at promoting breast feeding and

ensuring proper use of infant milk

substitutes and infant food.

The Insecticide Act, 1968: The Act

envisages safe use of insecticides so as to

ensure that the leftover chemical residues

do not pose any health hazard.

Export (Quality Control and Inspection) Act, 1963: The Act aims at

facilitating export trade through quality

control and inspection before the products

are sold to international buyers.

Environment Protection Act, 1986: This

Act incorporates rules for the manufacture,

use, import and storage of hazardous

microorganisms / substances / cells used

as foodstuff.

Pollution Control (Ministry of Environment and Forests): A no-

objection certificate from the respective

State Pollution Control Board is essential

for all dairy plants.

(i) Industrial Licences: No licence is

required for setting up a dairy plant in India.

Only a memorandum has to be submitted to

the Secretariat for Industrial Approvals

(SIA) and an acknowledgement obtained.

However, a certificate of registration is

required under the Milk and Milk Products

Order (MMPO), 1992.

 

Voluntary StandardsThere are two organizations that deal with

voluntary standardization and certification

systems in the food sector. The Bureau of

Indian Standards looks after

standardization of processed foods and

standardization of raw agricultural produce

is under the purview of the Directorate of

Marketing and Inspection.

 

Bureau of Indian Standards (BIS)The activities of BIS are two fold the

formulation of Indian standards in the

processed foods sector and the

implementation of standards through

promotion and through voluntary and third

party certification systems. BIS has on

record, standards for most of processed

foods. In general, these standards cover

raw materials permitted and their quality

parameters; hygienic conditions under

which products are manufactured and

packaging and labelling requirements.

Manufacturers complying with standards

laid down by the BIS can obtain and "ISI"

mark that can be exhibited on product

packages. BIS has identified certain items

like food colours/additives, vanaspati, and

containers for packing, milk powder and

condensed milk, for compulsory

certification.

 

Directorate of Marketing and Inspection (DMI)The DMI enforces the Agricultural Products

(Grading and Marketing) Act, 1937. Under

this Act, Grade Standards are prescribed

for agricultural and allied commodities.

These are known as "Agmark" Standards.

Grading under the provisions of this Act is

voluntary. Manufacturers who comply with

standard laid down by DMI are allowed to

use "Agmark" labels on their products.

 

Management Systems for Quality and Food SafetyISO 9000 Quality Management Systems

The ISO 9000 system is looked at as a

system with minimum quality requirements.

It builds a baseline system for managing

quality. The focus, therefore, is on

designing a total quality management

system, one that complies with external

standards, but includes the specific

requirement of industry and integrates

elements of competitiveness.The

millennium standard (ISO 9000:2000) has

changed the focus from procedure to

process. The main features of the ISO

9000:2000 standards are:

 

Refinement in the presentation to make

reading easy and elimination of general

inauditable statements such as

"consideration shall be given”

The present standard gave an impression

that it was applicable to manufacturing

situation though it was applied in

organizations of different types and sizes,

including the service sector. The new

standard is a broad-based standard

applicable to all sectors.

In the new standards, approach has

changed from continuous improvement to

continual improvement. Continuous

improvement remained an implied

approach to quality improvement in ISO

9000.

 

Plant Quarantine OrderIndia introduced the Plant Quarantine (Regulation of Import into India) Order in 2003 to prohibit and regulate the import of agricultural articles. Orders include:A ban on the import of certain plants and

planting materials from designated

countries (eg sugarcane from Australia)

A restriction on the import of other plants

and plant materials to authorized

institutions, with additional declarations and

special conditions attached.

A requirement for additional declarations

(such as a phytosanitary certificate issued

by the exporting country) and special

conditions for a further positive list of plants

and plant materials. The Order, with

amendments, is available at the

Department of Agriculture and Cooperation

and Plant Quarantine Organization of India

websites. The implementing agency is the

Directorate of Plant Protection, Quarantine,

and Storage, under the Department of

Agriculture and Cooperation, Ministry of

Agriculture.

 

Export (Quality Control and Inspection) Act, 1963The Export Inspection Council is

responsible for the operation of this Act.

Under the Act, a large number of exportable

commodities have been notified for

compulsory pre-shipment inspection. The

quality control and inspection of various

export products is administered through a

network of more than fifty offices located

around major production centres and ports

of shipment. In addition, organizations may

be recognized as agencies for inspection

and /or quality control. Recently, the

government has exempted agriculture and

food products, fruit products and fish and

fishery products from compulsory pre-

shipment inspections; provided that the

exporter has a firm letter from the overseas

buyer stating that the overseas buyer does

not require pre-shipment inspection from

official Indian inspection agencies.

 

Other Government RegulationsIndustrial Licence: No licence is required for setting up a Dairy

Project in India. Only a Memorandum has

to be submitted to the Secretariat for

Industrial Approvals (SIA) and an

acknowledgment is to be obtained.

However Certificate of Registration is

required under the Milk and Milk Products

Control Order (MMPO) 1992.

 

Foreign Investment:Foreign Investment in dairying requires

prior approval from the Secretariat of

Industrial Approvals, Ministry of Industry, as

dairying has not been included in the list of

High Priority Industries.

Automatic approval will be given upto 51%

Foreign Investment in High Priority

Industries.

In case of other Industries, proposals will be

cleared on case to case basis. Government

may allow 51% without enforcing the old

limit of 40% applicable under Foreign

Exchange Regulations Act at its discretion.

 

Foreign Technology Agreements: Foreign Technology Agreements are freely

allowed in high priority industries under the

following terms:Lump sum payment of Rs

10 million

Royalty payment of 5% on domestic sales

and 8% as exports subject to total payment

of 8% on sales turnover, over a 10 year

period from the date of agreement or 7

years from commencement of production.

Foreign Technology Agreements in dairying

also need prior approval. Foreign Exchange

required for payment of Royalty will have to

be purchased at market rates.

Foreign Technicians can be freely hired.

 

Import of Capital Goods

Import of capital goods is automatically

allowed if it is financed through Foreign

Equity. Alternatively, approval is needed

from the Secretariat of Industrial Approvals.

The approval depends on the availability of

Foreign Exchange Resources.

 Import of Second Hand Capital GoodsImport of Second hand goods is allowed

subject to the following conditions:

Minimum Residual life of 5 years

The equipment should not be more than 7

years old

A certificate from the Chartered Engineers

of the country of origin certifying the age

and the Residual life is to be produced.

Import will be allowed only for actual users.

 Dividend BalancingRemittances of dividend should be covered

by earnings from exports recorded in the

years prior to the payment of dividend or in

the years of the payment of the dividend.

Amended Tax Structure for Food Processing Industries

Our Bureau

Date of posting: 13-10-10      The Government has taken necessary steps to rationalize and simplify the tax structure for the food processing industry, the Ministry of Food Processing has informed.

      On the Income Tax side, 100% tax exemption is available for the first five assessment years beginning with the initial assessment year (under section 80-1B (11A) of Income Tax Act, 1961) to companies deriving profits from the business of processing, preservation packaging of fruits or vegetables, and to new units in the business of processing, preservation and packaging of meat, meat products, poultry, marine or dairy products. Under the same subsection (11 A) of section 80-1B, a deduction from profits up to specified amounts is allowed subject to specified conditions, if such undertaking begins to operate such business on or after the 1st day of April, 2001. This pertains to companies in processing, preservation and packaging of fruits or vegetables, and in the integrated business of handling, storage

and transportation of food grains.

      With a view to preserving perishable food items like milk, poultry and meat, the Finance (No.2) Act 2009 has amended sub-section (11A) of section 80-1B with effect from 01.04.2010 in order to also provide tax holiday in respect of the business of processing, preserving and packaging of meat and meat products and poultry, marine and dairy products for units which begin to operate such business on or after 1st April, 2009.

      As far as Customs & Central Excise Duties and Service Tax are concerned, Central Government, on its part, has extended a slew of concessions to provide a fillip to the food processing sector in India. In Budget 2010-11 as a major initiative,

‘Project Import’ status, which allow imports at a concessional rate of 5% basic customs duty, has been conferred upon cold storage, cold room (including farm pre-coolers) or industrial projects for preservation, storage or processing of agricultural, apiary, horticultural, dairy, poultry, aquatic & marine produce and meat.

      Apart from this, ‘Project Import’ status has also been conferred on projects for installation of Mechanized Handling Systems & Pallet Racking systems, in mandis or warehouses for food grains and sugar.

Other Food Policy News

France seeks long ter

The present day consumer looks for new bakery products, better appeal, taste and convenience from bakery foods. With a population of 1 billion

plus, India has the largest middle-income consumers, who demand varieties in food,

clothing, transport and improved living standards, also wish to eat out. Opportunities, in

abundance, exist in Bakery Cafes and Restaurants, those who cater fast foods, is

another fastest growing sector in India.

challenge to

he needs to

information, technology,

and services to meet the

needs of the

To meet the

challenges, the Govt. of

encourages

and Medium Enterprises

(SME) with

schemes, to modernize

grade their

The present day consumer looks for new bakery products, better appeal, taste and convenience from bakery foods. With a population of 1 billion plus, India has the largest middle-income consumers, who demand

varieties in food, clothing, transport and improved living standards, also

wish to eat out. Opportunities, in abundance, exist in Bakery Cafes

and Restaurants, those who cater fast foods, is another fastest growing

sector in India.

This is a new challenge to baker and he needs to update his information, technology, products and

services to meet the changing needs of the Indian consumer. To meet the new challenges,

the Govt. of India encourages the Small and Medium Enterprises (SME) with very attractive financing schemes, to modernize and up-grade

their units. This Bakery industry is making a quantum leap and undergoing radical transformation, thanks to soaring consumerism towards

nutritious food products and cautiousness about health, leading the most of the bakery products to shoot up. 

 

Indian bakery sector is the largest among food processing industry, is valued at over USD $69 billion, growing spectacularly at 7 per cent and expected to reach 8 per cent by 2010.

However this flourishing Industry is still in a nascent stage, offering wide scope for bakery ingredients market to grow along with. Bakery related ingredients market will almost double from revenues of about USD $161.4 million in 2007-08 to USD $278.1 million in 2014.

Bakery Consultant

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z

The two chief products of Bakery are Bread and Biscuits

which account for almost 82 per cent of the Bakery

market share in the country.

Despite the absence of dynamic structure and

professional platform, annual production of bakery

products, including Biscuits, Bread, Buns, Cakes,

Pastries,and Rusk, is estimated to be around 3 million

tonnes. But the fact is that 30 per cent of the production

is carried out in the organized sector and rest is

manufactured in the unorganized sector.

The bread market is expected to grow by 7 per cent

annually in volume, on the other hand, the biscuit

sector has seen a little higher growth at about 8-10

percent annually.

Almost all the big

businesses of bakery

industry have redefined

the costing structure in

their plants and operation because of economic slump in

order to gain ground in the turbulent times. 

And cost reduction has become an ongoing phenomenon

rather than spasmodic program. This period taught the

lessons to all the bakery companies whether be a small

or medium or a big company to strive for innovation and

modification for getting substantial saving in factory

operation.

There are effective solutions to achieve cost savings

Purchase-: Try to procure the raw materials in bulk

from tax and excise duty free area.

Outsourcing-: You can also outsource the raw

materials like Palm oil ,Sugar ,flour as well as outsource

the processes such as grinding and packing.

Logistic-: As you know that transportation is now very

high whether it is inbound or outbound. So it is

important to build strong transport management so that

inexpensive kind of transportation can be selected.

 

Packaging-: packaging material is also crucial factor in

terms of cost.

Automation-: It is fact that automating the process can

produce considerable savings.

These are the areas where we can cast focus in order to

cut down the manufacturing cost so that our products

should stand competitive.   

All India Bread Manufacturers Association(AIBMA)

asserts that per person consumption of bread across

India is only about 1.75 kg.

 

Meticulous analysis of regional consumption of bread

denotes, southern states is at top with 32 per cent,

Northern, Western, and Eastern states consume around

27%, 23%, 18 percent respectively.

Rapidly growing population and mounting middle class

income are the significant drivers for the wide

expansion of the the industry, so it is not uphill task to

make substantial profits out of Bakery market, if

managed properly and sensibly.

The Biggest change of all occurred when the Chorleywood Bread Process was invented in the Sixties. This is the way most British bread is made to this day. It dramatically speeded up the process.Its method was high-speed mixing, using intense energy (about six times as much as a craft baker uses to mix his dough), a plethora of additives, greatly increased yeast quantities and no fermentation time.

Before Chorleywood - indeed, for all of man’s bread-making history - bakers took time to let their dough rise (or ferment). That way, the small amount of yeast they put in could multiply and react with the flour to produce enough gas to aerate the bread. Most bread was made in a two-stage process over 12 to 16 hours. Time ripened the dough, making it easier for the baker to handle and tastier to eat.But advances in molecular science have revealed an even more significant role of time in bread-making.As you allow dough to ferment, it neutralises some of the bits of wheat protein that are most likely to trigger bowel disease and other auto-immune and inflammatory reactions to gluten. Unfortunately, almost all British bread is now made from ‘no time dough’. Which is bad news for our bowels.Chorleywood was a triumph of efficiency: you could get from raw flour to wrapped loaf in under three hours.But there were also the additives. Quite a few of them, in fact. Potassium bromate (now banned in the UK as a possible cancer producer), azodicarbonamide (also banned), L-cysteine hydrochloride, sodium stearoyl-2-lactylate and so on — the list was long.To avoid too many frightening chemical names, bread labels were allowed to group the nasties under bland headings such as ‘flour treatment agent’ and ‘emulsifier’.Some additives were belatedly banned (including the bleaching of flour with chlorine gas in 1999), but new ones filled the gap and, if anything, the list is longer today than 30 years ago.

Growth strategies

Bangalore: The Rs10,000 crore organized biscuit market in India is witnessing an intense battle for market leadership, with a recent Nielsen report indicating that

the privately-held Parle Products Pvt. Ltd (which does not disclose its numbers) may have pipped the Nusli Wadia-led Britannia Industries Ltd in revenues. However, a combative Vinita Bali, managing director of Britannia, disputes the report and claims that her company’s operating margins are nearly double that of Parle and her emphasis is on “profitable growth”. A little over five years after she took over as the chief executive and later on as managing director of the company, Bali has managed to double the revenues of Britannia, but net margins have been an area of concern. Rising input costs of the three main ingredients, fat (oil), flour (wheat) and sugar, along with increasing competition from players such as Surya Food and Agro Ltd (which sells Priyagold biscuits), ITC Ltd’s foods division (which sells under the Sunfeast brand) and the entry of international major Kraft Foods Inc. into the Indian market is likely to have an impact on the company.In an interview, Bali spoke on what Britannia is doing to improve margins and take on the competition. Edited excerpts:In the last five years, while revenue has doubled, your net profit in fiscal 2010 was lower than what it was in fiscal 2006. What have been the key challenges? We have grown (revenue) at a CAGR (compound annual growth rate) of a little over 15% over the last five years. In the first four years (of my tenure), the top line growth (was) at around 20%, but last year was a challenge.Graphic: Ahmed Raza Khan/Mint

In the first quarter of this year, we grew at 25%, so growth is back and we are looking at a pretty

buoyant revenue growth this year. Yes, however, margins are a concern, but you have to

remember that the profit pool of the entire (biscuit) sector has come down.In spite of that,

Britannia has (nearly) twice the operating margin of its largest competitor (Parle). But it is like

saying I am the tallest midget. I take no joy in being the tallest midget. Our net margin is 6%

compared to the 2.5% of our largest competitor. Our aim is to have profitable growth.

What about the recent Nielsen report on Parle having emerged as the largest player in

the segment?

I don’t know where Nielsen is getting its data from. Sales which happen at railway stations, bus

terminaandchannels like canteen stores (of the defence services) and sales at BPO (business

process outsourcing companies) have not been audited. It is a fact that Britannia has lost market

share in the glucose segment. But the glucose segment itself has come down from around 34-

35% of the overall market to around 29%. We will not play the discounted price game in the

glucose segment even if it means losing some (market share). Outside of glucose, in the other

70% biscuit market, we clearly continue to be the market leaders with a 38-39% market share.

We remain the most profitable player in the industry, even as we continue to deliver double-digit

revenue growth.Reports are coming out of  EU , Kazakhstan , Russian  and other  Black Sea

nations of the lower output of wheat  this season  due insufficient rains and hot weather.Wheat

prices which had  been on the fall now seems to go upwards as news from these countries which

has been the major exporter of wheat  to the international market  indicating lower production of

wheat . Bakers can  plan there costing taking into  consideration higher prices  for  wheat flour .

Hot  and extreme weather conditions have  effected  entire Europe  through out  in the month of

June  and July . Middle Eastern nation which are also dependent on these countries would see

steep hike in flour pricBut  therno alarm on scarcity as world have enough stock of wheat

majority being with  China and India  which are not major player in export market.

The short fall has been estimated    to be in tune of  3.6Mn , 4.5 Mn  and  3.0 Mn Tonnes for

Europe, Russia  and  Kazakhstan respectively.

Press Release

Safety and Standards Authority of India has been formed under the Food Safety and Standards

Act, 2006 as the apex food regulator in the Country by bringing in various Acts and Orders

related to food safety that were hitherto administered by different Departments and Ministries of

Government of India.

The Govt. has already notified 43 sections of the Food Safety and Standards Act and the

remaining sections will also be shortly notified and will replace the various food related orders,

including PFA Act & other food safety related Rules in the country. Draft Rules and regulations

for transition from PFA to FSSA have already been approved by the Food Authority and are in

the process of being notified in accordance with the laid down procedures Most of the provisions

of FSS Act are to be implemented by States/U.T.s through statutory functionaries already

notified like State Food Safety Commissioners, Designated Officers, Adjudicating Officers and

Food Safety Officers. In each State/ U.T. there will also be Food Safety Tribunals which will hear

appeal against the decisions of Adjudicating Officers.

As a prelude to the rolling out the implementation of the FSS Act, an ambitious capacity building

has been undertaken by FSSAI by organizing ‘Orientation Programme’ & ‘Training of Trainers

Programme’ for all the regions of the country. The first such Orientation programme for Food

Safety Commissioners of the Sates/ U.T.s was conducted by FSSAI at it’s headquarter at New

Delhi during 7-9th June, 2010. It was participated by the Food Safety Commissioners from

Chhattisgarh, Delhi, Goa, Gujarat, Haryana, Jammu & Kashmir, Karnataka, Madhya Pradesh,

Maharashtra, Manipur, Orissa, Punjab, Sikkim, Tamil Nadu, Tripura, West Bengal and Andaman

& Nicobar Islands. The next orientation programme is scheduled in September, 2010 wherein

the remaining Food Safety Commissioners are expected to be trained.

Further, to train the large number of personnel at the level of Designated Officers & Food Safety

Officers, FSSAI has devised a Training of Trainer (ToT) programme. The first such ToT

programme covering officers from Jammu & Kashmir, Haryana, Punjab, Uttarakhand,

Chandigarh, Himachal Pradesh, Rajasthan and Delhi was held at FSSAI headquarter at New

Delhi during 21-25th June, 2010. Other ToT programmes were held at Lucknow, Mumbai and

Kolkata. The last programme for FSO training is scheduled at Chennai from 26-30th July, 2010.

Those who have been trained in these programmes will start training the Food Safety officers

and others in theirrespective States. The State Governments have been requested to initiate this

phase-II training programmes and thus FSSAI expects that the modern methods of food safety

regulation would percolate to the grass root level enabling thousands of officials involved in the

food safety work to upgrade their skills in tune with the Food Safety and Standards Act, 2006.

Eventually the target is to train about 1800 Food Inspectors (prospective FSOs), 700 Designated

Officers and 700 Adjudicating Officers with a period of about 3 - 4 months.

source

2010 Baking Industry ForecastJan 1, 2010 12:00 PM, By Katherine Martin, Chief Editor

The coming year poses a host of questions and challenges for bakers–the most pressing being how to attract consumer dollars in the current economic climate. By most counts, 2010 will usher in a slow recovery, and bakers will need to address several trends to help generate sales.

        

  

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What a difference a year makes. At the beginning of 2009, optimism ruled the day. All the talk about the economy seemed to have the same refrain: wait until 2010. Things were going to start looking rosy again around the third quarter of 2009, but no later than fourth quarter 2009, and by 2010, we'd be well on our way to recovery.

But at the onset of 2010, realism rules, and much of the previous optimism has dissipated. While it is true that the recession, as defined by negative growth of the gross domestic product (GDP), did indeed end in the third quarter of last year with a 2.8 percent increase of the GDP, the rebound has been much smaller than anticipated. Economic growth is expected to remain at a modest 3 percent for much of the year. This is an improvement over the previous two years but is not enough to return the economy to its pre-recession level.

The reality is that recovery is going to be slow. “2010 will look a lot like 2009. Consumers are going to remain cautious,” says Ron Cardey, president, Bridor USA, Vineland, N.J.

The unemployment rate seems to have stalled at 10 percent, and a lot of talking heads are tossing around the term “jobless recovery.” Many eliminated jobs simply will not be replaced. According to the Labor Department, the U.S. economy has lost 7.2 million jobs since the recession started in December 2007. The labor market is expected to be slow to recover, a trend that actually began with the smaller downturns of the past two decades.

Part of the slow recovery is due to consumers knee-jerk reaction to the recession. They stopped spending instantly, and businesses followed suit. According to a CNBC report, personal consumption is expected to grow 2.3 percent, lower than the overall economy's 2.7 percent. With a new frugal mindset, consumers are expected to use their money to pay down debt rather than making new purchases, meaning purse strings will remain tight.

Consumers watch spending

The Nielsen Co. reports that almost one-third of consumers say they will use credit less, even when conditions improve, and 19 percent intend to save more money. “I think sales are going to be tough to come by,” says Bill Mihu, vice president of bakery operations, Schnuck Markets, St. Louis. “Bakery is an affordable luxury, but people will be watching their spending.”

To succeed in a tough econcomy, bakers need to find the right balance between product quality and reasonable prices.

One indication that consumers are still closely watching their spending is coupon use. Last year marked the first year that coupon use had increased since 1992. Manufacturer coupon redemption was up 26 percent in the first three quarters of 2009, according to the Nielsen Co. Another sign of consumers' new frugality is the rise of private label sales over national brands. “Consumer buying habits will likely continue to favor private label and more traditional bakery products,” says Robb MacKie, president and C.E.O., American Bakers Association, Washington, D.C.

Bakeries have traditionally weathered recessions well, but the drawn-out recovery will continue to be a drag on the baking industry. “While I believe the worst of the recession is over, the country is not back on the path to sustainable growth. Economic growth this year will be modest at best, and there are warnings of a potential second dip,” MacKie says. “The worrying signs include predictions of substantial increases in commodity prices, expiring tax cuts, uncertain federal policy, an aggressive regulatory policy in Washington and the exploding federal debt. Not until there are several months of respectable jobs growth will the economy trend upward.”

With the economic future uncertain, bakers should not maintain the status quo. “Bakeries will have to be prudent,” says Dan “Klecko” McGleno, C.E.O., St. Agnes Baking, St. Paul, Minn. “I expect those who expand or reduce will do better than those who try to maintain right where they are.”

In view of what bakers can't control—customer spending and ingredient costs—they need to take charge of what they can control—their own operations. “Bakeries should continue to refine their daily operations by evaluating products and eliminating those that are unprofitable,” says William Seppi, general manager, Costeaux French Bakery, Healdsburg, Calif.

The bakery ingredients and equipment industry in the Middle-East is witnessing tremendous growth, with companies even considering doubling their production capacities to cater to the demands of the region's growing tourism and hospitality industry.

Indian bakery equipment market is on a growth trajectory. Key drivers are the skilled manpower, dual household incomes and the increasing number of bakeries to cater to the wide range of products and rising consumption levels. This is where Paramount Impex which is part of the Paramount group intends to maximise its presence in the country. The over five decade old company has spread its operations in Bangalore, Mumbai and Delhi and has the ability to design and produce a comprehensive range of bakery equipment. Some of these are manufactured in the India but the hi-tech range is imported. In an interaction, Sanjay Mehra, Director, Paramount Impex provides a market overview along with the growth prospects of his company.

Q. What according to you are the factors, which are driving the bakery equipment industry in the country today?

A. The main factors driving bakery industry are diverse. This is because the structure of the bakery industry comprises three segments namely need-based, basic hotel requirements and connoisseur requisites. The need-based category caters to products like bread and biscuits. Under the hotels, it varies from breads to pastries, cakes, pizza and puffs. The connoisseur category focuses on international standard and will cover products like specialised pastries and cakes, including pannanie tartsto in addition to a number of fascinating breads with garlic content among others available in hard and soft textures.

B.

Q. Going by the ability to produce bakery equipment through transfer of technology, do you think India can become a hub for its economies-of-scale to contract manufacture for international companies?

A. Equipment manufacturing for international companies surprisingly has not caught in India. The reasons could be varied. Firstly, there is a lack of infrastructure as the factories in India are not advanced and large to under-take high volume production. For instance in China, the production facilities for bakery equipment do not look sophisticated but are at least ten times larger in size with only high-end manufacturing machinery. Each factory in China had a Japanese made machine which costs over Rs 1 crore. The focus is on total automation to ensure highest quality standards and provide the large volume production. This is where government of India needs to step in and ensure its industries are equipped to meet international standards in manufacturing bakery products.

Q. What are the developments at Paramount Impex in terms of investments and new products?

A. We have placed orders for some new machines. These include sheet formings and welding to improve the quality. We are also keen to open a new factory of international standards and work towards higher quality and better branding. This is where we will tie-up with Emersons to help in the plant automation with microprocessor technology.

Q. Could you provide details of your manufacturing facility and enlist the total offering for the bakery sector?

A. We have had a comprehensive customer base which includes factory bakeries, hotel bakery, small bakery shops and pizza centres. There is a huge scope for growth. Our products include baking ovens, mixers, proofers, rounding machines and sheeting machines.

Q. Which of these are the fastest growing?

A. Our equipment has been installed in numerous locations. We are known for a large installed base, wide range of equipment and a depth in baking technology. This is where Paramount capability covers every conceivable type of product and value added option. We can offer equipment for each key process stages and there is also a constant effort to improvise the range. Among the fastest growing equipment are for pastries, cakes, coffee shop bakery items. This is where the growth is visible.

Q. Could you also provide details on the international and domestic market presence?

A. Our Indian exposure has been practically in every major and Tier II city. We have also been a supplier to bakeries and hotels chains in the SAARC nations which include Sri Lanka, Bhutan, Nepal among others. We are also present in the Middle East.

Q. How is the competition in this sector and what is Paramounts edge in this space?

A. Our advantage over competition is the vast experience of over five decade. We have grown with the bakery industry and comprehended its nuances to offer high quality and dependable equipment at reasonable prices.

Q. What are the likely future efforts of the company to move ahead in this space?

A. For the future prospects, we are looking to increase our presence in every area of bakery equipment. Since our production expertise has been much-sought-after going by the regular customers we hope to cash-in more from this recognition. In addition, the pace of the Indian economy growth would also help us to accelerate our growth prospects.

Q. What are the issues for equipment manufacturers to succeed in the market?

A. There are issues to succeed in this field. These include constant innovation standardisation of products, achieving economies-of-scale and highest quality of service and after sales service.

Q. What are the likely future growth drivers of the bakery equipment?

A. The key growth drivers of the bakery industry will rely on higher incomes, propensity to spend, growing consumption, young population, urbanisation, emergence of nuclear families, changing tastes and preferences. This will ensure the buoyant prospects for the bakery products which will automatically have a positive outcome for the bakery equipment industry. There will be a need for modern designs for bulk handling systems for sugar, flour, fats and liquids, dough elevators, blenders, over moulds, laminates

Revolution in bakery industry--- The bakery industry or for that matter all the businesses catering to bakery are witnessing a sort of revolution. With the quick food culture catching up (indicated by the

growth of fast food outlets and cafeterias in the country), the demand for bakery products has increased tremendously. Gone are the days of small artisan bakeries. In an age where malls, hypermarkets and supermarkets have become the customer's preferred destination, the concept of

chain bakeries has come into its own.

The emergence of chain bakeries seems to be posing a serious threat to standalone bakeries. Mike Penney, group export manager, Moffat, feels that a stage will come when standalone bakeries will find it tough to survive. "The bakery industry has become more organised in the recent past. It is following the path of restaurants - as the industry has become more organised, chain restaurants have taken over the market and standalone restaurants have found it really tough to survive. I foresee a similar trend in the near future in the bakery sector as well."

Along with an increase in demand for the bakery products, the awareness about health is also on the rise. Bakeries are making sure that they come out with healthier products. "The awareness of the virtues of products like whole grain, health breads, cholesterol-free products and such other health products is growing in our country. We are constantly trying to come out with products, which are better and can be a part of healthy life style," says Binu Varghese, director (marketing & business development), South and West Asia, AB Mauri.

He continues, "We have recently introduced

'Original Brown Bread' and 'Multi Grain Bread', which are made from wheat grains and whole grains, respectively. MeadowLea, a cholesterol-free substitute for butter, is another product that we have introduced. We believe that these are great ways to incorporate healthy products in one's diet." The company plans to constantly develop healthier products. "We are looking to cater to R&D requirements by setting up a centre in Bangalore. It will work on food-related research and enzymes that go into bakery products," informs Varghese.

An increasing demand and health awareness has resulted in the modernisation and upgradation of the equipment, which has led to a highly technological bakery industry. Bakeries are on the lookout for equipment that are safe to use, efficient, fuel-economical and environmentally-compatible. After extensive research, products like infrared burners have been introduced in the market, which use about 30 per cent less fuel than other ovens and also emit lesser pollution. Moreover, since the import duties have come down, it has become more affordable than in the past to import machines, which are designed to meet the needs of today's

professional bakers from other parts of the world.

For an unorganised industry, bakeries have come a long way to develop into an organised and technology-savvy one. Going by the trends in the recent past, its future promises a lot of growth and ultimately better products for the consumer.