indianews october november 2005 - · pdf filep.21 cryogenic technology for ice cream ......

IndiaNews

FOOD & FOOD INGREDIENT REVIEW October / November 2005

CONTENTS

Editorial

Food Industry Overview p.3 Monsoon Report p.4 Overview of Indian economy p.8 Growth at 8.1 per cent in Q1

CII predicts 7.3% growth in 2005-06 Mahindra to get into food biz India, Mauritius sign preferential trade pact Australia seeks more space in Indian retail food market

p.9 Testing for heavy metals in herbal medicine Indian organic products certifying bodies to get EC `equivalence' status

p.10 Food majors set up shop via franchise route Foreign push for food processing Food process outsourcing presents good prospects

Aquaculture p.11 Tsunami effect: Shrimp exports to US take a hit p.12 US dumping duty on Indian shrimps to stay

Shrimp exports to US shrinking India, Mauritius ink pact to boost marine products trade

p.13 Crabs in demand Scarcity of healthy seed stock worries shrimp industry

p.14 HLL charts new products, markets for marine biz

Dairy, Meat & Poultry p.15 Avian flu: Govt. puts in place surveillance system

Poultry exporters expanding processing capacities p.16 Cipla to launch generic drug for bird flu

Ministry permits generic cos to make bird flu drug Griffith eyes India’s poultry market

p.17 Cashing on avian flu fears Japan opens door to Indian poultry products

p.18 Japfa plans to make India its export hub for poultry products Record milk output

p.19 Hatsun Agro bullish on dairy ingredient exports Himalaya Intl plans cheese unit

p.20 Ban on slaughter of bulls upheld Dorper sheep in India

p.21 Cryogenic technology for ice cream Largest vegetarian cheese producer

Alcoholic Beverages p.22 Duty on imported liquor may come down

New rules to boost liquor capacity addition Rabo Bank to identify buyout targets for Radico

p.23 IMFL pushing out country liquor in UP p.24 US-based family in talks to market wine

Indage group unveils low-cost quality wine Indage in talks to buy UK wine trading co

p.25 Singapore funds picks stake in Champagne IndageIndage, Sula to exit bulk wine imports GEM India picks up stake in Sula Vineyards

p.26 New wines from Renaissance Fruit wine and cider in tetra packs UB Group goes serious on wine UB unlikely to axe spirit brands

p.27 SABMiller eyeing acquisitions Grain based distilleries from Praj Radico Khaitan to buy Brihan's brands Cobra Beer plans second facility in Maharashtra

p.28 Mohan Meakins set to divest beer biz

Non-alcoholic Beverages p.28 Herbal malt beverage from Dabur

Coca-Cola to pump money into Indian arm Rasna launches health drink

p.29 Kerala Govt. move adds to Coke plant woes Energy drink `effect'

Contents continued on next page …

IndiaNews is published every 2 months by:

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Vol. 6-05 © GIRACT 2005

IndiaNews


CONTENTS (Continued)

Tea p.29 Tea tourism from McLeod Russel p.30 Teas with a conscience

Apeejay to buy tea biz of UK co. p.31 Tata Tea acquires US co Good Earth

Newby to launch specialty teas Dilmah ties up with Heinz

p.32 New residual limits likely to hit tea exports to EU South Indian tea spreads its aroma India, Sri Lanka seek accord on pesticide residue

p.33 Vacuum packaging of bulk teas Tea growing areas in South India

Coffee p.34 Arabica output likely to drop on white stem borer

menace Coffee exports down 35 per cent in H1 Heavy rains affect coffee

p.35 Action in coffee retail heating up Coffee Day in Vienna

p.36 Italy's illycaffe, Sterling Group tie up for coffee machines Barista Coffee shelves franchising plans

Food Service & Retailing p.37 India offers strong retail potential: PwC study

India gaining ground in retail p.38 Bad traffic turns home delivery dreams cold p.39 Metro Cash & Carry mulls expansion

Domino’s to invest in expansion Pizza Hut upbeat about India RPG group to double retail space

p.40 Mukesh Ambani ready to set up shop Pulse Food targets middle class

Snacks p.40 Haldiram to diversify into biscuits, pastas and noodles p.41 FritoLay plans foray into low-fat salty snacks

FritoLay launches Quaker Oats Dairy Milk desserts

p.42 Unibic Biscuits launches in North Charity market for biscuits Actis set to snap up Nutrine Perfetti Van Melle to expand

Culinary Items (Continued) p.43 India takes the sting as EU lifts China honey ban

Chinese imports sting honeybee farms Bristol-Myers Squibb arm to enter India

p.44 Heinz launches Complan Family Cook-in sauces for curry Healthy soups from Nestle Sweet chilli

p.45 White arecanut prices on the rise

Sugar p.45 Pakistan’s loss, India’s gain

Indian sugar for South-East Asia p.46 Happy days for sugar industry p.47 Global investors take fancy to sugar industry

A new sugar mill Bannari Amman Sugars to expand Bannari Amman to roll out `refined sugar'

p.48 Triveni to invest in new units Balrampur to buy Dhampur Sugar unit Bajaj Hindusthan starts 3 new plants Karnataka to try growing sugar-beet

p.49 Ethanol paradox Ponni Sugars to raise capacity Tamil Nadu sugar mills to supply ethanol to oil companies

Oils p.50 Edible oil imports rise in 2004-05

Edible oil imports to rise: Godrej Edible oil imports to dip

p.51 Tariff values for oil import Castorseed falls on prospects of good crop

p.52 China rejects Indian soyameal p.53 Oilmeal exports rise on demand from S-E Asia

Petfood p.53 Niger seed exports up


Vol. 6-05 © GIRACT 2005

IndiaNews



Spices & Flavors p.54 Pepper production likely to fall

Disease-resistant pepper & ginger Subsidy for export of pepper

p.55 Ginger exports to Pak, Bangladesh on the rise Toxic tactics rattle ginger traders

p.56 Chilli pulls down H1 spices export p.57 Chilli turns hot on fears of lower crop

Turmeric prices rise up p.58 Amul deal for vanilla

Pilot plant to process vanilla Rains add to woes of vanilla growers Prices of thickeners

p.59 Guar seed prices may stabilize Advanced Enzyme to buy stake in Chinese firms

p.60 Domestic Prices

Foodgrains p.61 FCI, Adani join hands for grain management

Domestic branded basmati rice market growing p.62 No wheat imports

ICRISAT develops chickpea hybrid

Fruits & Vegetables p.62 India to import onions from China, Pak p.63 Raw cashew nut output may decline p.64 US grapes luring South India

Organic grapes p.65 Orange output may increase

UP to export branded potatoes p.66 Fruit & vegetable exports rise

Biotech p.67 14 new veggie varieties approved for limited trial p.68 India, Netherlands sign biotech MoU

Major Food Companies p.68 Nestle plant in Uttaranchal

ITC seeks carbon credits

Related Publications p.69 ChinaNews p.70 Japanscan

Diwali – The festival of Lights was celebrated on 1 November

Some images of Diwali celebration

Vol. 6-05 © GIRACT 2005 40

IndiaNews Food & Food Ingredients Review

Food Service & Retailing Snacks

Mukesh Ambani ready to set up

shop Mukesh Ambani’s retail blueprint is virtuallyready. The broad structure includes dividingthe country into 21 zones, each headed by aCEO and a revenue target of RS. 900 billion.

Reliance Industries (RIL) retail model willinclude hyper and super markets apart frombig malls.

As per the initial plan, the retail business willstart with 20 A-class cities in India and willbe expanded to 100 destinations later. It issaid that each of the larger retail centres willspread over 100 acres and houseentertainment facilities, a small hospitalcomplex, eateries and a big mall.

RIL is believed to have set aside aninvestment of Rs. 300 billion over the nextfive years, which could allow it to emerge asthe single largest player in this sector. (ET 11Oct)

Pulse Food targets middle classSaroj K Poddar group, maker of Gillette andDuracell in India, has entered the restaurantbusiness. The Rs. 10 billion group haslaunched a chain of quick service restaurants– Pulse Food – serving affordable northIndian cuisine to the average Joe in middleclass neighbourhoods. Pulse Foods India plans to set up 30 outletsin three years. (ET 23 Nov)

Haldiram to diversify into biscuits, pastas and noodles Haldiram Marketing Pvt. Ltd, manufacturers of Haldiram's brand of Indian snack foods, is to diversify into production of biscuits, pastas and noodles.

According to Mr. Manohar Agarwal, Managing Director, the company plans to invest over Rs 500 million in a new plant to produce instant noodles and pastas. The company is in talks with Italian players to acquire the technology.

The unit, planned in Uttaranchal, would commence production by March 2007. It had bought over 10 acres of land.

The new product range will also be under the Haldiram's brand.

The Rs 10 billion family-managed company has over six manufacturing units each churning out over 60-70 tons of `namkeens,' `bujjias' and other savouries every day. It also produces over 70-75 varieties of sweets, but except for a few canned varieties, these are mostly sold over the counter at their exclusive outlets in Delhi, Bikaner, Nagpur and Kolkata. (HBL 13 Nov)

Vol. 6-05 © GIRACT 2005 41


SnacksSnacks, Biscuits, Confectionery, Chocolates

FritoLay plans foray into low-

fat salty snacks Fritolay, the snacks division of PepsiCo, will soon introduce low-fat namkeens (salty snacks) in keeping with the growing health awareness in the country.

Mr Manu Anand, Managing Director, FritoLay Division, Pepsico India Holdings Pvt Ltd, said the company was committed to healthy snacks but not at the cost of taste, and so would go slow before it put out such products.

FritoLay recently introduced a low-fat version of Lays potato chips called Lay Stax, made from reconstituted potato flakes, which are available in select outlets only.

The company, which earlier this year set up a plant in West Bengal, is undertaking major expansion in its Pune and Punjab plants over the next 12 months. The total capacity will go up to 80,000 tons annually from the current 60,000.

Mr Anand says FritoLay is the largest player in the Rs 18 billion organized salty snack market. The company's market share would be between 40 and 50 per cent, he claimed. However, two-thirds of the salty snacks market is made up of players in the regional and unorganized segment, he said. (HBL 16 Nov)

FritoLay launches Quaker Oats Fritolay, a division of Pepsico India Holdings Pvt Ltd, launched its new breakfast cereal, Quaker Oats, in India. Quaker Oats will initially be launched in metros followed by smaller cities and towns.

Quaker Oats, a heritage brand, marks the company's entry into the branded Indian breakfast market.

Quaker Oats comes with a recipe book and TasteMix sachets in two flavours — cardamom and masala to appeal to the Indian palate. (HBL 26 Oct)

Dairy Milk desserts Cadbury India has launched Cadbury Dairy Milk Desserts chocolate with cream centres in tiramisu and kalakand flavors. (HBL 20 Jan)

Vol. 6-05 © GIRACT 2005 47


Sugar

Global investors take fancy to

sugar industry Foreign investors are finally buying the Indian agriculture story. Overseas funds are shoveling money into the Indian sugar industry – the largest agri-based sector in India – as prospects of high retail prices and makeover into a glamorous energy crop spice up a dull business.

They have already invested Rs. 12 billion to date, a first for the Indian farming sector. With GDRs for another USD 200 million lined up, foreign investors will soon own a substantial shareholding in Indian sugar industry. (ET 15 Nov)

A new sugar mill GMR Industries Ltd (GMRIL), the flagship company of the GMR group, has embarked on a major expansion programme involving a capital investment of Rs 4.01 billion.

The company proposes to set up a new sugar complex with a capacity of 3,500 tons crushing per day (TCD) with 24MW cogeneration and 45-kilolitre distillery in Karnataka at a cost of Rs 2.32 billion. The project would be completed by September 2007. (HBL 25 Oct)

Bannari Amman Sugars to expand Bannari Amman Sugars Ltd, which has two sugar factories — at Sathyamangalam in Tamil Nadu and at Alaganchi village near Nanjangud in Karnataka — is in the process of expanding the Karnataka unit to 7,500 TCD (tons of cane crushing per day).

The company commenced production at the Nanjangud unit in 1992 with an installed capacity of 2,500 TCD. This was expanded to 5,000 TCD in 2000. It is now enhancing the capacity by another 2,500 TCD.

The installed capacity at the Sathyamangalam unit stands at 4,000 TCD. The sugar units in the two States have a combined annual production capacity of 0.25 million tons of sugar. (HBL 19 Oct)

Bannari Amman to roll out `refined sugar' Bannari Amman Sugars is planning to roll out a premium brand `refined sugar' for the retail market.

Refined sugar production is not a new project for Bannari Amman Sugars, as the company has already been supplying this sugar, albeit in bulk to the user segment such as the pharmaceutical companies and the confectionery industry. It is now intent on establishing a retail market.

The `Bannari' brand refined sugar is expected to be available off the shelf at select departmental stores soon. The company is targeting only the southern States of Karnataka, Tamil Nadu and Kerala. (HBL 27 Oct)

IndiaNews

FOOD & FOOD INGREDIENT REVIEW August / September 2005

CONTENTS

Editorial Food Industry Overview p.3 Stock markets zoom to new height

Outsourcing the new buzzword p.4 New Food Bill in Parliament

Challenge to Tetrapak monopoly p.5 US rejects 256 Indian food consignments

Ready-to-eat food sector growing Nutritional value on food packs to be mandatory

p.6 Imported food for the platter Karnataka to expand organic farming Organic food manufacturing unit

p.7 States to write a new contract for agriculture

Aquaculture p.7 Shrimp prices begin to recover in US markets p.8 Export Performance of Marine Products p.10 Rita, Katrina impact to buoy Indian marine exports

Dairy, Meat & Poultry p.11 Milk no longer in plastic pouches

Amul milk in Lucknow Ice cream mix from Amrit

p.12 Dodla Dairy expands network Rajasthan Dairy gets uplift Gopaljee to launch cow milk Venkys DSM group tie up for vitamins

p.13 Arambagh chicken for Japan Egg powder maker to invest in poultry farm

p.14 Bird flu threat to India, Bangladesh Bromark heralds fair-price revolution in chicken

Alcoholic Beverages p.15 Wine board to help industry

Indian wine to grow ten times in ten years Foster’s plans to launch wine brands Dessert wine from Sula

p.16 Indian wine market Foreign investment in Indian wines Seagram to set up winery Champagne may set up winery in MP

p.17 Liquor companies post 27 pc increase in sales Seagram garners 25 pc share of premium whisky market Domestic spirits to find place in Flemingo stores Fortune Brands acquires Teacher’s scotch whisky

Alcoholic Beverages (Contd.) p.18 Soft drink bottler turns to liquor bottling

Heineken talks to Jaipurias Ravi Jaipuria likely to partner InBev in India

p.19 Radico plans expansion SABMiller set to roll out draught beer UB Group endorses Punjab barley UB expansion plans

p.20 Som Distilleries to open pubs

Non-alcoholic Beverages p.20 Railways to open two bottled water plants

Kerala Pollution Board orders closure of Coke unitCola majors grapple with attrition

p.21 New entrants jumping to grab a slice of fruit juice market

p.22 Parle Bisleri plans fruit juice foray Burn and Full Throttle from Coke Mr. Orange to expand Pepsi, Coke appeal against mandatory declaration

p.23 Herbal juices from Mamta Leh Berry in a new incarnation





[email protected]


Vol. 5-05 © GIRACT 2005

IndiaNews



Tea p.24 Tea industry scenario depressing

Brooke Bond flavored tea South finds favour in ready tea

p.25 White tea fetches Rs. 1,601 a kg Tea Board to tackle quality issue Bengal tea workers’ end strike

p.26 Tata Tea readies acquisition war chest Tata tea to focus on tea bags Cardamom tea

p.27 Diversity of South Indian tea gardens p.28 Beeyu joint venture for Sri Lanka foray

Coffee p.28 Parliament panel moots support price for coffee p.29 Coffee growers feel pinch as crop comes under pest

Coffee output to take a hit on pests, rain Coffee exports may dip to 10-year low UK coffee chain to open 300 outlets

p.30 Tata Coffee plans tie-up with Uganda Government Tata Coffee plans new factory Rasna mulls foray into coffee retail

Food Service & Retailing p.30 Indage brings Nando’s chicken p.31 Fast food on expansion mode

Pizza Corner outlets in Bangkok Lombard St exits Pizza Express

p.32 Chowking Food plans to enter India Trent to inject Rs. one billion National Capital Region to boast of 50 malls

p.33 Organized retail to surge Family owned shops rule Indian retail space

p.34 Poor planning chokes malls RPG stake in Foodworld may go to a consortium

Snacks p.35 Indians gorging on snacks

Parle Agro looking at confectionery Britannia losing grip over biscuits market

p.36 Wild n’ fruity for children Cookies and crackers from ITC Candico sets up pick-n-mix stores

Culinary Items p.36 Contract farming of aloe vera p.37 Riddhi Siddhi to double exports

Tapioca starch prices zoom on supply crunch p.38 Heinz scouts for acquisitions

Nestle unit in Uttaranchal New Horlicks variant

p.39 Noodles from Cinnovation Ready-to cook gravies Cereal flavor Mushroom pickle

p.40 Colour use in foods NGO ties up for stevia farming Stevia production likely to leap

Sugar p.41 Sugar output may top 18 m tons

Inclusion of sugar in Doha round sought Indian sugar to Pakistan Sugar industry upset over jute packaging order

p.42 UP sugar sector witnessing investment boom Raw sugar import norms amended Expansion plans Balrampur Chini, IFC sign carbon credit agreement

p.43 Pact with oil companies for ethanol Unit to make ethanol from sorghum Sugar troubles

p.44 Sugar mill in Himachal

Oils p.44 More palm oil from Indonesia likely

Edible oil imports at record high Soya oil import triples Soyameal sold to South Korea

p.45 India focuses on Asia to step up meal exports Soya cultivation falls

p.46 Wipro to log out of vanaspati Coconut oil price crashes Parakh Foods asks Cargill to buy out JV

p.47 Government cuts base import price Colavita Olive Oil


Vol. 5-05 © GIRACT 2005

IndiaNews



12 October is the festival of Dussehra or Vijayadashmi.

It symbolizes the victory of good over evil. In many parts of India, ten-headed effigies of demon-king Ravan are burnt on the evening of Dussehra.

Spices & Flavors p.48 Vanilla exports down 90 per cent

High price forces pepper buyers to look beyond India p.49 Ginger prices rise

Garlic export to Pakistan and Bangladesh Garlic imports from China stopped due to fungus

p.50 Stocking pushes up nutmeg, mace prices Four firms lose export permit on EU complaint Tamarind price crash Saffron prices stagnant for six months

p.51 Floods to push turmeric prices Cardamom output to rise Prices of thickeners in Mumbai Paras to aim for retail market


Foodgrains p.53 Setback to kharif crop likely

New barley, wheat strains DNA testing of basmati for EU Rice exports to be robust even as output set to fall

p.54 Basmati exports at all-time high Hybrid rice acreage likely to rise Pulses output likely to drop Arsenic content lower in Indian rice Satnam starts UK plant

Fruits & Vegetables p.55 Almond prices zoom, benefit to walnut p.56 Onion export prices up

South East Asia boosts rose onion p.57 No antidumping duty on Indian mushrooms in USA

Mushrooms for US FoodService Dutch help for white button mushroom project

p.58 Canadian company plans potato processing unit in Gujarat American dry peas in India GM eggplant field trials Jupally gherkins to US, Canada

p.59 Karnataka plans to become cashew hub Cashew exports may gain Turkish hazelnuts in India

p.60 Karnataka grape growers upbeat over export ordersGrape production in Punjab Bumper apple crop in Himachal

p.61 Melons from Afghanistan for India Pomegranate research centre Kashmiri apples get a pack house

Major Food Companies p.62 Unilever boss can’t digest HLL food biz

ITC has hopes from agri-business

Related Publications p.63 IndiaNews p.64 Japanscan

Vol. 5-05 © GIRACT 2005

1


Editorial

On a visit to India, one notices prominent and garish signboards of the type, “VIP Wines” or “Gulshan Wines” or “Golden Wines”. None of these so-called “wine” shops sell wine. A few of them do stock and sell a small quantity of wine, but more as an exception than a rule. Their primary merchandise is Indian Made Foreign Liquor (IMFL) – whisky, rum, vodka, gin and beer. Mr. Sharad Pawar, Union Minister for Agriculture, who is himself an agriculturist with experience of growing vines and who hails from Maharashtra (the wine state of India) wants to change this. He wants to de-link wine from other alcoholic drinks. He wants to promote sale of wine through shops that do not sell IMFL and wants to stop IMFL shops from misusing the word “wine”.

We wish success to Mr. Pawar in his efforts to bring a new perspective on wines in India. There is a growing realization in the Government of India that wine should be promoted as a product that brings benefits to farmers. The government is seriously considering setting up a Wine Board for promoting the domestic wine industry.

While the government will take its own time in mulling over proposals, the market is voting in favour of wine. Consumption of wine in India grew at a rate of 14 per cent during 2003-04, and this is just the beginning. A study by Exim Bank predicts that, in the next ten years, the wine industry will grow ten-fold. Such heady projections have, on the one hand, encouraged domestic wine companies to expand as fast as possible. Domestic wine companies were so far concentrated in Western India (Maharashtra, Karnataka and Goa). Now, they are looking at other states to expand their operations. The optimistic projections have, on the other hand, attracted foreign wine and liquor companies to look at Indian wine market with a new seriousness. In this issue, we report about Seagram setting up a winery and Foster’s plans to launch wine brands in India.

To help foreign companies planning to enter Indian wine sector, the Government of India has permitted automatic approval of foreign direct investment in the sector. In other words, wineries are now considered like any other food processing industry and are not classified with the ‘sinful’ alcoholic drinks, where each proposal for foreign direct investment must wade through the painfully slow bureaucratic maze.

While wine seems to be the new sunrise industry in India, the real star is fruit juice sector, which is said to be growing at 40 per cent per annum. Carbonated beverages are falling out of favour. Cola companies find themselves getting into news for all the wrong reasons. Politically, the left as well as the right, love to hate cola companies. While Coca-Cola has been having problems in the communist-dominated Kerala, it has also been facing protests in Rajasthan, a state ruled by right-wing BJP. The negative sentiment has affected cola sales. Colas’ loss has been the gain of fruit juices. New entrants are getting ready to exploit emerging opportunities in the sector, even as the cola companies try to put up a spirited fight and to make their mark in the fruit juices sector as well.

(Continued on next page)

Vol. 5-05 © GIRACT 2005 16


Alcoholic Beverages

Indian wine market

Wine Type Per cent of total sales in India

White wine 50

Red wine 30

Port wine 10-20

Champagne 10-15

Wine Markets Major Markets Per Cent

Mumbai 39

Delhi 23

Goa 9

Bangalore 9

(FE 14 Aug)

Foreign investment in Indian wines Boosting the prospects of Indian wine industry, Government of India has allowed wineries to bring in foreign direct investment (FDI) through the automatic route. In doing this, it has de-linked wine from hard spirits and beer on the issue of FDI. (ET 16 Aug)

Seagram to set up winery Marking a milestone for the fledging Indian wine industry, Seagram India is setting up production facilities at Nashik, Maharashtra. This is the first time a multinational is setting up its own winery in India, though most international wine majors set up marketing facilities here five years ago.

Right now, the company does not have plans to acquire vineyards but will be collecting grapes from farmers for crushing. (ET 9 Aug)

Champagne may set up winery in MP Champagne Indage Ltd is reportedly considering setting up a winery in the Ratlam district of Madhya Pradesh (MP). For this purpose, it has sought information on grape production in MP. (BS 25 Aug)

Vol. 5-05 © GIRACT 2005 29


Coffee

Coffee growers feel pinch as crop comes under pest Coffee plantations in the south are battling a crisis, with the production of the Indian variety of arabica coffee hit by pests. If the pest attack proves to be fatal, coffee growers may have more trouble in store.

The impact of the attack can only be ascertained once the south-west monsoon is over. With 40 per cent of Indian production of the black brew coming from arabica variety, the total loss may exceed Rs. 1 billion. (ET 13 Aug)

India’s coffee production severely hit by white stem borer disease has drastically dragged down exports in the current calendar year, according to the secretary of Karnataka Planters’ Association, Vijay Karnad. (FE 17 Aug)

Coffee output to take a hit on pests, rain Excessive rains and pest attacks are expected to slice into India’s coffee output this year, contrary to earlier predictions for a good crop, a top industry official said.

Production in the year to March 2006 is likely be 15-20 per cent short of estimates of 294,000 tons made in July, Bose Mandanna, an executive committee member of Karnataka Planters’ Association, told Reuters in an interview.

Coffee Board in its post-blossom estimates in July had forecast that India would produce 105,600 tons of arabica this year, up from 103,400 tons a year ago. Robusta output was likely to jump to 188,400 tons from 172,100 tons, it had said. The board will publish its post-monsoon estimate in October. (FE 31 Aug)

Coffee exports may dip to 10-year low Coffee exports are likely to decline to hit a10-year low this calendar year as growersand traders hold back stocks in anticipationof better prices, according to Mr. RameshRajah, President of Coffee ExportersAssociation of India.

In the first seven months, coffee exports havedeclined by 38 per cent to 101,000 tonscompared with 164,000 tons during the sameperiod a year ago. Permits issued by theCoffee Board till August 3 are also down at118,600 tons compared with 166,900 tonslast year. (HBL 5 Aug)

UK coffee chain to open 300 outlets The United Kingdom’s Costa Coffee is set toopen its first store in Delhi as part of its planto operate more than 300 outlets from India,its Managing Director. Mr. Mark Phillipssaid.

Following the signing of a franchise dealbetween Whitbread and Indian restaurantGroup, Devyani International, Costa willopen its first store in Delhi with the aim ofeventually having more than 300 in India.(HBL 27 Aug)

Vol. 5-05 © GIRACT 2005 51


Spices & FlavorsIncluding food additives

Floods to push turmeric

prices

Turmeric prices are expected to rise by Rs. 300 a quintal as about 3.8 million kg of the crop has been damaged in Sangli (Maharashtra) owing to heavy rains and floods in the fields.

Maharashtra contributes about 20 per cent of turmeric supply, while Andhra Pradesh and Tamil Nadu account for the rest. The crop in these states has also been damaged on account of heavy rains. (BS 13 Sept)

Cardamom output to rise

Cardamom production will increase by 15-20 per cent and may breach the 12,000 tons mark in the current fiscal, compared with the 9,000-9,500 tons produced in 2004-05, according to latest estimates of Spices Board. (BS 25 Aug)

Prices of thickeners in Mumbai Indicative prices of some thickeners in the Mumbai market on 24 September are as follows:

Rs. / kg Xanthan 525 CMC 250 Guar gum 60 Pectin 525 Carrageenan CH-2 700

Source: Bio-Sols India Pvt. Ltd. Mumbai

Sales tax will be charged extra. For Mumbai applicable rate of sales tax is 12.5%. for local transactions and is 4%. for inter-state transactions.

The prices given above are only indicative prices to know the trend. The prices can vary depending upon the quality, grade, origin etc.

Paras to aim for retail market

Punjab based Paras Spices Pvt. Ltd. plans to enter the 8.4 million tons retail market for spices in the country.

The company has been in the business of institutional sales of spices since 1980, with its clients being Nestle, Satnam Overseas, Emsons Exports India, and EBI Cremica Foods Coatings, among others. (BS 12 Aug)

IndiaNews

FOOD & FOOD INGREDIENT REVIEW June / July 2005

CONTENTS

Editorial Food Industry Overview p.3 Changing food basket in India

India climbs into top 10 economies Fizz is back in food, beverages sector

p.4 Food Processing stocks on fire Food processing sector to grow at 10 per cent p.a. Foods exports grew at 15.6%

p.5 India gets record rejections US rejects Coke, HLL, P&G, Britannia shipments

p.6 The curse of Gujarat GDP growth in 2004-05 slips to 6.9 per cent Seaweed to increase plant yield First food irradiation project

Aquaculture p.7 Indian shrimp exporters open offices in US

Device to cut by-catch Shrimp unit in Orissa AP farmers exiting prawns

p.8 Shrimp farmers under pressure to go organic Packed ready-to-eat fish curry

Dairy, Meat & Poultry p.8 Karnataka to export milk powder p.9 Indian livestock growth static

Amul posts growth p.10 Mother Dairy in East India, West UP

Mother Dairy processed cheese Retail push for Amul ice creams

Alcoholic Beverages p.11 Beer sales up

Premium vodka brands on fast track Molasses prices seen easing out

p.12 SABMiller buys out Shaw Wallace in joint venture Mallya has appetite for global brands UB to sell some of its liquor brands

p.13 Jagatjit Industries on sale Debut of 50-year old whisky Foster’s signs up local bottling partner Bagpiper to sell 10 million cases

p.14 Bagpiper now in Tetra Pak

Non-alcoholic Beverages p.14 Coke splits operations

Summer of 2005 damps spirit of cola majors Sun sets on Sunfill

p.15 Rural India hooked on colas Ban on sale of ‘Red Bull’

Non-alcoholic Beverages (Contd.) p.16 Court orders Kerala village body to renew Coke

licence Coke franchisee’s Maaza plant Low calorie Sprite Zero Apple juice with tea

p.17 Mango drink with a ‘twist’ Fruit power from Cadila Dabur’s new plant in Rajasthan Fruit drinks from Kashmir

Tea p.18 Khaitans buy out Magors in Williamson Tea

Tea exports to West Asia, North Africa rise p.19 Tea exports to West Asia, North Africa rise

Tea estates try to go organic p.20 Tata Tea reports good results

Tata Tea may go for another overseas buy Bengal tea sector hit by workers’ strike

p.21 Indian tea industry – an overview p.23 South India teas aim for branding

Coffee p.23 Coffee output may rise 7 per cent

Coffee exports decline in 2004-05 p.24 Monkey Coffee

More munch than mocha in coffee shops Coffee exports fall in current fiscal

p.25 Tata Coffee to invest in CIS, Uganda and Vietnam Tata Coffee net zooms 77 pc Tata Coffee to acquire six estates of Tata tea Barista plans more outlets


IndiaNews is published every 2 months by: GIRACT

24 Pré Colomb, 1290 Versoix – Geneva Switzerland

Tel +41 22 779 0500 Fax +41 22 779 0505

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Vol. 4-05 © GIRACT 2005

IndiaNews

FOOD & FOOD INGREDIENT REVIEW June / July 2005


Coffee (Continued) p.26 Allana Sons leads coffee exports in first half

Coffee Day Xpress eyes 1,000 kiosks

Food Service & Retailing p.27 Pantaloon’s Chamosa

South-based chain heads north Nirula’s on sale Pizza Corner’s first foreign outlet

p.28 New 24x7 retail chain Piramyd Retail expansion plans Shoppers’ Stop mulls food retail venture ASW hopes to open shop

p.29 ITC plans 30 rural malls

Snacks p.29 Branded biscuits register growth

Parle forced to change packing p.30 Indians gorging on snacks p.31 Cadbury enters choco sauce market

Actis develops sweet tooth for Nutrine JK group launches toffee

p.32 Britannia eyes new segments Britannia profits increase 25 pc Cadbury to boost presence in mouth freshener category

Culinary Items p.32 Kellogg plans more variants

Pizza base from General Mills p.33 Pudding Mix from Weikfield

Heinz puts Farex on block p.34 Agra delicacy turns sugar free

Areca nut to Pakistan

Sugar p.35 Oil firms to buy ethanol at Rs. 18.75 / litre

Sugar output set to rise Free imports of sugar scrapped

p.36 EU move to cut subsidies brighten Indian sugar EU fixes zero duty quota Sugar prices soar in North India as Pak demands find unofficial way MMTC buys 50,000 tons sugar

p.37 Top firms set up sugar mills in UP DCM Shriram to set up 2 sugar mills

Oils p.37 Hydrogenated oils from Sri Lanka cause concern in

India p.38 Castor giant expanding

Soya meal exports down GM groundnut under testing

Oils (Continued) p.39 Delayed rains may bring down edible oil output:

CMIE

Spices & Flavors p.39 Overproduction grounds chillies

Chilli exports fall as China raises output New European norms for Indian chillies

p.40 Guar prices fall as rains arrive Indian vanilla exports rise up Sri Lanka pepper hurts Indian producers Salt fortification


Foodgrains p.42 Revised foodgrains production estimates

Power from rice husk Organic paddy in Kerala Pioneer hybrid rice

p.43 Cornell varsity’s help for rice development India likely to import wheat: USDA

Fruits & Vegetables p.43 Grapes export may recover p.44 Mushrooms from Himalya

US slashes anti-dumping duty on Indian mushrooms Cocktail mushrooms

p.45 Agro Dutch may gain in Mexico Dry spell hits litchi export

p.46 Beta to expand India operations Bengal plans cashew export zone

p.47 Garden Fresh to expand Punjab fruit in Singapore

Petfood p.47 New ingredients for poultry feed

For dogs and cats from Purina p.48 Dog food – Rs. 5 billion business

Biotech p.49 India, China hotbed for agribiotech: E&Y report

ICAR plans to invest in biotech

Major Food Companies p.49 HLL to retain focus on food

ITC plant in Uttaranchal


Vol. 4-05 © GIRACT 2005 35


Sugar

Oil firms to buy ethanol at Rs. 18.75 / litre India’s long-stalled ethanol programme is finally taking off. Oil companies are believed to have agreed to buy ethanol from sugar mills at a new price of Rs. 18.75 per litre. Though this is much below the price the sugar industry has been asking for, the price allows sufficient room for efficient manufacturers to make a profit.

Oil companies are expected to buy 350 million litres of ethanol to supply petrol-blends in nine states across the country.

The sugar industry may get a much higher price for ethanol from the chemicals industry. However, the promise of a large and fixed-price market is at present far more important for the industry.

Due to the rise in demand of ethanol and assurance of 100 per cent marketing, India currently has 122 plants with a capacity of around 1,200 million litres per annum. Of these, 71 units are in Maharashtra, twelve units in Gujarat, six in Andhra Pradesh, five in Tamil Nadu, fourteen in Uttar Pradesh and ten in other states. This translates into an investment of more than Rs. 5 billion. Fifty-five units are stand-alone plants not attached to sugar factories and most of them are in Maharashtra. (ET 30 June)

Sugar output set to rise India’s sugar output in 2005-06 (October-September) is forecast to rise to 17.5-18.2 million tons (mt), an official of Indian Sugar Mills Association said.

“If the monsoon is good, it will be 18.2 mt. If it is bad, it will be 17.5 mt,” he said.

Sugar production in the current year is likely to be a little less than 13 million tons, he said, adding that India’s imports of raw sugar would be negligible next year, compared with 1.2-1.3 mt this year. (FE 30 May) Sugar output in India in the next season to September is expected to rise to 18.34 mt from a mere 13.77 mt in the current season, according to the latest estimates of the US Department of Agriculture. (BS 15 June)

Free imports of sugar scrapped Steady sugar prices and satisfactory stocks of the commodity for 2005-06 sugar season (October-September) have pressured the government into reversing the scheme allowing duty-free import of raw sugar. The scheme started last year with a 24-month timeframe in mind will be wound up by the end of the 2004-05 sugar season this September.

Some 2.0-2.5 million tons (mt) of raw sugar were contracted for import in the 2004-05 season, of which over 1.5 mt have already been delivered and the remaining is to be delivered by September.

By winding up the scheme by the end of this season and the beginning of the next, the government is allowing time to importers for completion of contracts. (ET 22 June)

Vol. 4-05 © GIRACT 2005 10


Dairy, Meat & Poultry

Mother Dairy in East India, West UP After expanding in Mumbai and Punjab, the Delhi-based Mother Dairy India Ltd has entered the eastern region. The company will further expand its reach to South India during the current fiscal.

The company is focusing on an all-India spread in its milk products, including butter, long-life milk, whitener, paneer (cottage cheese) and dahi (curd) during next few years.

The turnover is expected to touch the Rs. 20 billion mark. The export turnover, which includes overseas sales of skimmed milk, fruit juices and fruit pulp, are set to witness a jump from Rs. 40 million to Rs. 750 million. (HBL 16 June)

After Delhi, Western Uttar Pradesh (UP) and Uttaranchal are considered important markets for ice creams in North India, with approximate consumption of 670,000 litres and 625,000 litres a year, respectively.

To enhance its reach in this key market, Mother Dairy Foods Processing Ltd. has launched its complete range of ice creams in West UP and Uttaranchal. (BS 17 June)

Mother Dairy processed cheese In a bid to complete its milk productsportfolio, Mother Dairy has decided to enterthe 6,000 tons processed cheese market. Itplans to launch its processed cheese initiallyin Delhi and the National Capital Region.

The cheese will be made from cow’s milk atthe Dynamix Dairy plant. The milk for thisproduct will be sourced from co-operatives inMaharashtra, where cow milk is easilyavailable. (HBL 17 June)

All over India, except in a few pockets,buffalo has replaced cow as the main animalfor milk. So manufacturers who need cowmilk have to really look for it.

Retail push for Amul ice creams Amul is working on its biggest ever retailnetwork expansion drive. The plan is to add100,000 ice cream outlets over and above theexisting 45,000.

Amul ice cream is currently available at 600locations across the country excludingNortheastern states. A recent addition to thelist is Jammu and Kashmir.

Amul sells 35 million litres of ice creamvalued at more than Rs. 2 billion out of atotal branded ice cream market of 100million litres worth Rs. 6 billion. Amul icecream business is currently growing at therate of more than 20 per cent. (HBL 23 June)

IndiaNews

FOOD & FOOD INGREDIENT REVIEW April / May 2005

CONTENTS

p.1 Editorial

Food Industry Overview p.3 India-China develop partnership

India-S Africa PTA on fast track India, China aim for trade expansion India, Pak to set up joint business council

p.4 Indian exports to China up India-Singapore free trade soon

p.5 FTA with Japan on horizon Sopexa to set up India office FTA with Mauritius being readied CMIE sees 6.6 per cent growth in 2005-06

p.6 India ranks 4th in PPP India shifts to VAT amid chaos and confusion Monsoon to be normal this year Food processing vision aims to double growth Parliament nod for Patents Bill

p.7 Flex may supply pouches to Wal-Mart, Costco

Aquaculture p.7 Marine exports up p.8 Seafood industry on alert as US FDA detains shipments

Japan imposes curbs on Indian shrimps Japan rejects shrimp containers US to review dumping duty on Indian shrimp Seafood exporters file suit against US customs

p.9 A boost for tuna fishing, marine exports Punjab farmers take to prawns Himachal plans to save its trout

p.10 Seafood processing zone

Dairy, Meat & Poultry p.10 UP meat export increasing

Pakistan opens borders for Indian livestock Pak team coming to study Amul

p.11 Mother Dairy to enter Amul home New summer beverages in Punjab Italian ice creams in India

p.12 Dabur ‘open’ to exiting Dabon Ice creams may whip up 20 per cent growth Amrit Foods to double flavored milk capacity

p.13 Milk production at record levels

Alcoholic Beverages p.13 Shaw Wallace to tap draught beer p.14 UB Group to buy stake in Triumph

UB may prune portfolio UB rules Andhra market after SWC acquisition Mallya plans to acquire Scotch brand

p.15 UB to sell stake in merged co. Molasses duty cut: two cheers for liquor industry UB buys stake in Associated Breweries Steps to boost wineries growth

p.16 Radico Khaitan looking for acquisitions Radico Khaitan expansion New brands from Allied Domecq Radico to launch vodka brands New flavor from Absolut Vodka Alcazar vodka from Triumph

p.17 SABMiller hopes with 500-ml pack Pint beer brews 20 per cent of sales

p.18 UK’s Cobra Beer – made in India Seagram identifies core brands

p.19 Distribution crunch spoils Foster’s India party McDowell No. 1 is top brandy again Carlsberg eyes local breweries New brands from Mason & Summers


IndiaNews is published every 2 months by: GIRACT

24 Pré Colomb, 1290 Versoix – Geneva Switzerland

Tel +41 22 779 0500 Fax +41 22 779 0505

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Vol. 3-05 © GIRACT 2005

IndiaNews



Non-alcoholic Beverages p.20 Thums Up to thunder overseas

Agitation against Coke now targets Pepsi Agitation troubles continue for Coke in Kerala Railways ban to hit cola companies

p.21 Dabur to bank on beverages Milk-based beverages – the new trend Maaza in new flavors Jain Irrigation bags Coke order

p.22 RC Cola gets into war mode Fresh & juicy from Balan Exotic juices from Godrej

Tea p.22 Tea exports from south rise p.23 Teas to undergo quality tests

‘Darjeeling tea demand may fall’ p.24 Get ready for tea pill party

Goodricke group full of hopes Indo-China tea trade zooms up

p.25 Profits in marketing Unilever exits tea plantation biz in India

p.26 HLL to hive off tea plantation business Storm in an iced tea cup HLL, Pepsi launch Lipton Ice Tea

Coffee p.27 Coffee production estimates

Coffee exports up in dollar-value Pre-blossom showers bring cheers

p.28 CCL to set up coffee plant Starbucks scouting for partner Barista coffee at petrol pumps Tata Coffee to Vietnam and Uganda

p.29 Coffee clubs chain Hard Rock Café to enter India

Food Service & Retailing p.29 Papa John’s plans Indian launch

KFC & Pizza Hut plan more outlets p.30 Two chains of Chinese restaurants plan 100 outlets

each Pizza home delivery market growing Pizza Hut joins the diet club

p.31 McDonald’s to open more restaurants in North South African fast food chain coming to India RPG, Dairy Farm finalize deal to part ways soon

Food Service & Retailing (Contd.) p.32 Retailing: matchmaking with frenzy

Organized retail penetration may be 10 per cent by 2010: Fitch South USA comes to India Reliance to foray into organized retailing

p.33 Two Metro stores in Kolkata ITC’s rural supermarkets Ansals plan heritage malls

p.34 Planet Hollywood in India

Snacks p.34 Cadbury seeks to use vegetable fat in chocolates

Lotte coming with new products p.35 PepsiCo plans

Nestle trims product bouquet p.36 Nutrine pushes for share in Re 1 segment

Britannia’s new Uttaranchal unit Barry Callebaut may set up unit in India

p.37 Royal Parantha Company

Culinary Items p.37 Quite like sugar p.38 Avesthagen buys Good Earth Foods

New variant of Maggi noodles New Products

p.39 PepsiCo to scale up seaweed development Honey for Europe from UP Edible fibre plant from Taiyo Herbal viagra sales go limp Megafoods launches brand

Sugar p.40 Sugar output to rise after two-year decline

India to be net exporter in 2-3 years but importer in short term Sugar imports seen falling in ’05-06

p.41 Sugar imports may pick up in May Molasses duty cut Current year sugar output Ethanol-fuel blending to resume UP subsidy to hurt Maharashtra

p.42 Taste-conscious India sweetens to demerara Triveni to set up three sugar units EID Parry to buy sugar mills

p.43 Balrampur Chini profit doubles Bajaj Hindusthan emerges top sugar producer


Vol. 3-05 © GIRACT 2005

IndiaNews



Oils p.43 Soyameal exports to China up p.44 Oilmeal exports down in 2004-05 p.45 Edible oil imports rising p.46 Base import prices of palm, soya oil hiked

Castor exports on growth path Adani may buy Rath vanaspati USDA sees output down

Spices & Flavors p.47 Ginger exports cross 13,000 tons p.48 Spices exports rise 18 per cent

Exports to China revive salt industry Drop in pepper exports Pepper prices move up

p.49 Chilli exports touch all-time high Mentha oil futures get good response

p.50 Sudan dye certificate for turmeric Organic vanilla fetches premium


Foodgrains p.52 GAIN pegs rice exports higher

Revised buffer stock norm may hit wheat export p.53 Wheat output seen a bit lower

India to export old-crop wheat to three nations Pakistani chickpeas to India KRBL lines up rice bran by-products push

p.54 Golden rice failed – Greenpeace Satnam Overseas profit rises Basmati exports to W. Asia soar

Fruits & Vegetables p.54 Baby potatoes to US from India p.55 Mangoes may prove to be sour grapes this year

Karnataka eyes new markets for mango export p.56 Indo-Pak mangoes compete in China

Mango pulp exports may swell this year Courier firms gear up for mango retailing

p.57 Biscuits, baby food from banana ‘Dana’ bananas from India Jain Irrigation signs deal with Taiyo Kagaku Austrade push to apples in India

p.58 PepsiCo in talks for pineapple farming Demand for mushrooms to grow Weather wrecks Andhra grapes Andhra Pradesh begins pomegranate exports

p.59 Cashew exports touch a new high Tamil Nadu to set up cashew export zone

Biotech p.59 Draft biotech strategy p.60 Biotech incubator in Punjab

Kerala to set up biotech park Punjab biotech deal with Canada

Major Food Companies p.61 ITC eyes smaller companies

HLL to focus on local tastes Manwani to be chairman of HLL


Vol. 3-05 © GIRACT 2005

1


Editorial

As most of India experiences scorching heat, with day-temperatures touching 45o, the country is hoping and praying for a good monsoon. This is the time when the meteorological department issues its forecast of monsoon – an annual ritual that is as accurate as other weather forecasts. This year, once again, the prediction is of an average monsoon. If proved right, this could further boost the Indian economy that is growing year-after-year at more than six per cent per annum. It seems that the country has just begun on a high growth trajectory and there may be more interesting times ahead. Aiding this have been events that seem otherwise unrelated. History, rising up from the grave in the form of textbooks in Japan, caused China-Japan relationship to sour. This came just when the Chinese Premier was visiting India – first time in decades. China’s relationship with Japan is strained due to historical reasons; while in the case of USA and Europe, there are simmering trade tensions that threaten to boil over any day. On the other hand, except for an outstanding border dispute involving the Himalayan terrain, India and China have been friends through centuries. Though there are some fears in India of cheap Chinese imports, India has been able to build in the past year a trade surplus with China. All these factors add up to create the environment, which is just right for India and China to come close. The developing warmth of India-China relationship could be seen clearly during the visit of Chinese Premier Wen Jiabao. The two countries have agreed to establish a ‘strategic and cooperative partnership’ to take on the world. The two have also agreed to make efforts to take the bilateral trade from present USD 13.6 billion to USD 20 billion or higher by 2008 and to USD 30 billion or higher by 2010. A joint task force has been set up to look into the creation of a regional trading arrangement, which could lead to a free trade agreement. The Elephant and the Dragon are coming close and joining hands to create a gigantic market unlike any that the world has seen before. This huge market is bound to lead to the emergence of giant-sized companies, who will be able to take on the biggest in the Western world with relative ease. We had reported in the previous issue about the UB Group taking over Shaw Wallace. After the acquisition, the UB Group has become the second-largest liquor group in the world. It is reported that the group is planning to acquire a Scotch whisky brand, in addition, of course, to many small domestic companies. Two months back, we had said, “UB is bound to become a global giant whose aspirations may not remain confined to Indian shores.” The words are proving to be prophetic. India and China have complimentary strengths in various areas. A company that can build on advantages offered by both countries is bound to grow faster than others who either remain confined to one of the two or find both markets too complex. On the sidelines of growing India-China amity is the news that two companies, both specializing in Chinese restaurants, are planning to open 100 outlets each in India. Tea is said to have come to India from China, but now India is sending tea to China. Indian exports of tea to China have increased by 200 per cent. Tea is the cup that cheers. But soon it may be the pill that cheers. Indian scientists have developed a tea pill. Made from extracts of tea leaves, it can be chewed or sipped and has the same effect as a cup of tea.

(Continued on next page)

IndiaNews

FOOD & FOOD INGREDIENT REVIEW February / March 2005

CONTENTS

Editorial Food Industry Overview p.2 CII opposes FTA with Sri Lanka

US opposes limited FTA with India Indo-Thai FTA makes India Inc worried

p.3 Phase II of Indo-Thai FTA talks hit ROO bump PTA with MERCOSUR

p.4 GDP growth to touch 6.9 per cent in 2004-05 p.5 Economic Survey highlights

Farm growth pulls up GDP Share markets zoom up Traders plan 72-hour strike against VAT

p.6 Electronic spot trading bourse launched Project for organic market development launched Indian companies wilt under new regime in Nepal EPO revokes neem patent rights

p.7 Organic farming under fire

Aquaculture p.7 US trade body invites comments on tsunami impact

Seafood exports may dip p.8 EU emerges largest Indian seafood buyer

Shrimp fry from Bangladesh

Dairy, Meat & Poultry p.9 Software to track from farm to fork p.10 Poultry population growth p.11 Casein exports reach record high

Amul exports to touch Rs. 1.25 billion p.12 Amul aims to treble milk exports

Kolkata to set up meat processing unit

Alcoholic Beverages p.12 Million-case target for Smirnoff

UB’s Gold Riband to touch million-mark p.13 Chhabria family seeks exit from SWC

Mallya to make open offer for 25 per cent of SWC p.14 Komal Wazir may launch counter offer

UB in talks to buy a brewery unit Newbridge-Vangal combine drops out of SWC race Frontline brands pay off for Shaw Wallace

p.15 Shaw Wallace goes to UB War over Herbertsons ends

p.16 Bagga family seals deal with Khodays Shaw Wallace seeks to expand breweries’ capacity Hedges & Butler Scotch launched

p.17 Budget hikes excise on molasses

Non-alcoholic Beverages p.17 Soya Treat

Godrej to focus on fruit nectar, juice market p.18 Cigarette major plans beverage vending fray

Balan Foods plans healthy drinks PepsiCo unveils two more flavors

p.19 Coke pins hope on mango No kids in Coke, Pepsi ads Pepsi to bet on health products

Tea p.19 Tea futures by UPASI & MCX p.20 Tea production in South India declines

Tea exports up a tad Tea production down, imports up in 2004

p.21 Budget brings cheer for tea Beeyu to produce speciality, organic teas ‘Mizo Tea’ from Mizoram

p.22 Nilgiri tea producers to create their own brand Nilgiri tea festival

p.23 Race for Tata Tea estates Tata Tea transfers tea estates to workers

Coffee p.23 Socially accountable Tata Coffee p.24 Robusta prices up 62 per cent in 10 days

Coffee export cess removed Coffee exports down on dip in production Coffee futures launched

p.25 Tata Coffee plans new variants Barista lines up expansion plans 300 more Café Coffee Day outlets





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Vol. 2-05 © GIRACT 2005

IndiaNews

FOOD & FOOD INGREDIENT REVIEW February / March 2005


Food Service & Retailing p.25 Nirula’s restaurants at petrol stations p.26 Pizza Corner parent to bring in sandwich, ice cream

chains McDonald’s to launch low-fat menu

p.27 Organized retail to cross Rs. one trillion by 2010 Mall-mania is fine, but where’s the buyer? Piramyd launches grocery chain

p.28 Tatas in talks to buy out RPG’s Foodworld Inflight catering biz catches up

Snacks p.29 Cremica to bake in Himachal

UNIBIC plant at Bangalore Frito-Lay’s new plant in Bengal

Culinary Items p.30 Sun Fruits develops new stevia strains

Safeguard duty on tapioca starch p.31 Mount Shivalik to enter ready-to-eat meals

Sugar, almost Nutramen Healthcare eyes exports market Lupin arm foray into bee keeping

p.32 ITC’s fruit, spice conserves Drink toffee Sunfeast Pasta Treat from ITC

Sugar p.32 Southern mills lead in sugar imports p.33 Sugar import limit raised, but may not rise as high

Sugar output expected to rebound Raw sugar import at USD 244/t

p.34 Dwarikesh Sugar to expand UP to privatize sick sugar mills Molasses duty to cost mills dear

Oils p.34 Lower estimate of soya crop p.35 Carotenoid norms relaxed for crude palm oil import

Customs relief for palm oil imports p.36 Excise duty on refined oils, vanaspati goes

Tariff value for crude soya oil cut and raised p.37 Edible oil mills face pressure from duty-free zones

Rabi oilseed outlook p.38 Adani Wilmar refinery started

Adani Wilmar takes war to hydrogenated fat p.39 Castor seed production seen rising

Godrej lines up palm plans p.40 India sees potential in Pakistan

Spices & Flavors p.40 Cured vanilla production estimates

India a major supplier of chilli products p.41 AVT marigold unit in China

Marigold cultivation may rise p.42 AVT McCormick embarks on backward integration

Stringent checking for Sudan 1 p.43 Indian food sector looks West to tickle taste buds

Contract farming of culinary herbs p.44 Domestic Prices

Foodgrains p.45 Unseasonal rainfall, hailstorm may impact crops

Winter rains boost wheat p.46 Wheat exports may halve

Australian Wheat Board gets nod for subsidiary Rice exports projected at 2.8 million tons

p.47 Import of pulses to increase New pigeon pea hybrid to double output

p.48 New pearl millet hybrid Rice biotech park United Riceland to expand capacity

Fruits & Vegetables p.48 Rain destroys potato seed crop in Punjab p.49 Harsh Himachal winter may spell record fruit

Agmark grapes to EU Lab for Agmark testing of fruits and vegetables

p.50 Indian farmers adopting European norms Bt cabbage developed

p.51 Potato & onion production outlook bright Potato production may fall in UP Cashew exports may top Rs. 25 billion Coconut palms withstood tsunami

Biotech p.52 India, the new biotech hub

Pact with Punjab for biotech park Specific traits developed in groundnut, etc. Gujarat setting up biotech fund

Major Food Companies p.53 HLL to reduce processed foods sourcing

HLL to be renamed Unilever India soon Banga elevated as global foods head of Unilever

p.54 Nestle 2004 profit lower Dabur to export fruit pulp to Europe


Vol. 2-05 © GIRACT 2005 30


Culinary Items Sauces, Jams, Noodles, Syrups, Pickles, Health & Miscellaneous Foods

Sun Fruits develops new stevia

strains Pune–based Sun Fruits Ltd. has staked its claim to be the first Indian company to have developed successfully new varieties of Stevia rebaudiana with varying glucosidal concentrations and suitable for different climatic conditions in the country.

Stevia rebaudiana is today a major source of high potency sweetener for the growing natural food market in many parts of the world. The herb currently accounts for as much as 40 per cent of sweetener market in Japan, Korea and Malaysia. The new varieties developed by Sun are: • SRB 123 with a total glucosidal content of

9-12 per cent, suitable for the Deccan plateau where it can be harvested five to six times in a year;

• SRB 512 with a total glucosidal content of 9-12 per cent, suitable for the northern plains where it can be harvested four times a year; and

• SRB 128, a unique variety with a very high total glucosidal content of 21 per cent, suitable for both the southern and northern region of the country.

According to Mr. Shivraj Bhosle, Managing Director, Sun Fruits, the leaves of Stevia rebaudiana are 30 times sweeter than sugar – with no calories – and pure extract of the herb is 300 times sweeter than sugar. “One acre of Stevia rebaudiana cultivation produces sweetener equivalent to 36 acres of sugarcane.” (HBL 24 Feb)

Safeguard duty on tapioca starch Safeguard duty has been recommended on imports of tapioca starch for three years to protect the domestic industry against hurting imports.

In a notification dated 16 February, the Director-General (Safeguards) has recommended 33 per cent safeguard duty on tapioca starch imports in the first year on ad valorem basis, 23 per cent in the second, and 13 per cent in the third year. This would be in addition to the existing 30 per cent customs duty.

Safeguard investigation was initiated in July 2004 on imports of starch, cassava / tapioca based sago and modified starches. This followed a representation to the Finance Ministry by farmers and farmers’ associations of Tamil Nadu and Tamil Nadu Sago and Starch Manufacturers’ Welfare Association, Salem. They had represented that imported starch cost less than the domestic product, which affected the local producers.

Imports of tapioca starch touched 11,100 tons in 2003-04 from 428 tons in 2001-02. Estimates for 2004-05 based on the first quarter indicate that tapioca starch imports could touch 16,500 tons. The major sources are Thailand, which accounts for about 66 per cent, and Vietnam, which supplies about 33 per cent.

Domestic production dropped to 62,703 tons in 2003-04 from 90,806 tons in 2001-02. In a representation to the ministry, domestic producers said the livelihood of over 700 tapioca starch and sago manufacturers, of whom 448 units based in Tamil Nadu, was under threat. (HBL 3 Mar)

IndiaNews

FOOD & FOOD INGREDIENT REVIEW December 2004 / January 2005

CONTENTS

Editorial

Food Industry Overview p.2 The Indian Food Industry – Crouching Tiger p.4 Canada wants a pact with India

FTA with Chile on the way South Korea recognizes Indian certification

p.5 Rules of origin issue sorted out for Asia Pacific trade pact All FTAs to go beyond trade US food industry targeting India

p.6 Draft food processing policy Feedback on draft food law sought Anuga 2005 aims at India

p.7 Food processing policy in UP Wagh Bakri plans food foray Collaboration norms liberalized

p.8 India changes law to implement product patents Rallis to sell animal feeds biz Uttaranchal takes organic route

p.9 Asia business environment

Aquaculture p.10 Tsunami waves hit seafood exporters too

Tsunami may impact fish trade p.11 Tsunami impact on marine sector brief

Shrimps, prawn availability unlikely to be affected India set for big leap in mussel production

p.12 US confirms dumping levy on Indian shrimps Tsunami may ease way for exports to US

p.13 Bengal exports hit as middlemen play tricks with prawns Indians prefer inland fish

Dairy, Meat & Poultry p.14 Farmers prefer buffaloes over cows

Full cream buffalo milk brand p.15 Dairy unit near Jaipur

Milk plant in Srinagar Karnataka Milk Fed to export to Singapore

p.16 Joint venture with US company for livestock breeding APEDA stamp for meat exports mandatory Good potential for egg exports to Gulf

Alcoholic Beverages (Contd.) p.17 Vangal leads group to bid for Shaw Wallace liquor

business Jumbo lets Mallya bid for SWC liquor biz

p.18 Komal Chhabria in fray for family liquor biz UB emerges top bidder – probably Manu’s mother throws a spanner in SWC sale

p.19 UB chief buys Roy’s stake in TDV Fruity flavors UB to buy Karnataka Breweries Radico eyes Rs. 10 billion

p.20 UB offer for stake in Herbertsons Scottish & Newcastle picks up 37.5 per cent in UBL

p.21 Cobra plans brewery in AP Cobra to brew in India from Jan Bootleggers account for 40 per cent scotch

p.22 Moet Hennessy to expand consumer base with vodka Winemaking nations lobby India for lower duties

Non-alcoholic Beverages p.22 India Post to courier Mecca holy water p.23 Kerala firm unveils bottled coconut water

Soft drink from betel leaf p.24 More court action for colas

Cola bottles have to carry contents





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Vol. 1-05 © GIRACT 2005

IndiaNews



Tea p.24 Frostbite harms South Indian tea p.25 New profile of tea exports

ITA wants Tea Board to certify origin p.26 Tea imports rise to record heights

Tea Board orders e-auction Volumes, prices rise at South Indian auctions Tea production up in Kenya, Sri Lanka

p.27 Tea output lower Government talking to Libya about sub-standard tea Tea imports from Vietnam spurt post Libyan episode Protection for Darjeeling tea Darjeeling agri-export zone

p.28 Aroma therapy for Tetley Speciality tea auction at Nilgiris

p.29 Beeyu plans tea factory acquisition in Sri Lanka Kangra tea to be patented

Coffee p.30 Coffee Board cuts output estimates, but still better

than last year Coffee prices on up trend Coffee exports down in Apr-Oct Fraser & Neave canned cold coffee

p.31 New retail initiative by Tata Coffee Fresh coffee powder Tatas sell Barista stake Café Coffee Day plans Europe, Mid-East foray

Food Service & Retailing p.32 Trinethra acquires Fabmall

Only 77 malls under construction p.33 Demand may not aid retail growth

High rents push food chains out of malls Taneja plans 14 malls by 2007 Retail market to grow: Assocham Cyprus group in cash & carry mode

p.34 ICICI Ventures hikes stake in Subhiksha Godrej rolls out agri-stores JV partner a Giant problem for RPG FoodWorld to focus on South

Food Service & Retailing (Contd.) p.35 Hypermarket / Megastore plans

Yo! China plans more restaurants McDonald’s plan more outlets

p.36 S. Africa’s retail major plans shop Pizza Corner plans overseas foray Kabab Factory expanding Gillette India promoters to foray into food biz

p.37 Domino’s eyes maiden profit

Snacks p.37 Nestle India CMD

Nuts about peanuts Lotte-DS venture to produce gums

p.38 HLL regrets Modern bite HLL to exit biscuits

p.39 Nutrine to expand product range Merisant attracted to mint & chocolate market

p.40 Input costs worry Cadbury Cookie plans go sour

Culinary Items p.40 Homoeopathic health tonic

Ready-to-eat foods from Brindavan p.41 Herbal sweetener in Uttaranchal

Health spread Stevia rebaudianais sweetener Nature’s Bounty in India

p.42 Breakfast from Godrej Foods Health, food supplement companies eye India Dabur launches soup

p.43 New Products


Vol. 1-05 © GIRACT 2005

IndiaNews



Sugar p.43 Raw sugar imports to suffer

ISEC buys raw sugar p.44 Sucden gets nod for sugar trading

Sugar turns hot but cools soon White sugar imports ruled out

p.45 Jaggery may hit sugar output UP sugarcane price

p.46 Jaggery prices encouraging Scrap monthly release system – Panel

p.47 EU plans for sugar import reform No to sugar branding Pakistan to import sugar but not from India Balrampur Chini plans expansion

Oils p.48 Cargill JV with two companies

Bunge inching towards JV with Ruchi Icrisat working on fortified groundnuts

p.49 Solae launches Soy Day Asia strikes deals for Argentine soyameal amid India vacuum Solae to outsource from India Pakistan and Bangladesh emerging markets for soyameal

p.50 Cottonseed oil at 10-year low Refined soyabean oil imports spurt Coconut oil prices soar

p.51 Excise duty on interesterified oil

Spices & Flavours p.52 Good year ahead for Indian vanilla

Plans to check vanilla quality p.53 Vanilla growers set processing unit

Duty-free pepper imports suspended from all countries except Lanka FTAs threaten pepper trade Global pepper production pegged lower

p.54 Kerala Government support for pepper Pepper prices slide Albert David ties up with Ajinomoto Higher subsidy for cardamom exports Cardamom exports rise

p.55 Soaring domestic prices hit turmeric exports Tamarind prices may go up Chilly exports heat up

p.56 Cumin seed area drops Spices at the doorsteps Spices exports top target

p.57 Estimated export of spices from India during April-December 2004


Foodgrains p.59 Corn exports to SE Asia likely

Maize price rise hits starch units Pillsbury launches Punjabi atta

p.60 Par-boiled rice exports rise Basmati futures trading Iran loves Indian non-basmati Non-basmati rice exports dip Satnam rice mill in London

p.61 Rabi turnaround raises foodgrain output hopes

Fruits & Vegetables p.61 Safer fruits and vegetables p.62 Rajasthan vegetables for Dubai

Indian grapes for China Coconut cultivation in Assam Snow cheers Himachal apple growers

p.63 Exports of cashew rise Pineapple in Kerala

Biotech p.63 Gufic to roll out biotech products

Biotech R&D lab gets US patents p.64 Indian Scientists working on 21 GM crops

Associated Publications p.65 ChinaNews

Vol. 1-05 © GIRACT 2005 20


Alcoholic Beverages

UB offer for stake in

Herbertsons UB group Chairman, Mr. Vijay Mallya, has offered Rs. 1.31 billion to buyout the 49 per cent stake owned by Mr. Kishore Chhabria in Herbertsons Ltd, the country’s third largest spirits company.

UB filed an application before the Supreme Court on Tuesday divulging the figure and said it was hopeful of presenting the consent terms by the next date of hearing on December 8.

However, UB’s efforts for a joint application to the apex court along with Mr. Chhabria, did not materialize, as the latter is reportedly yet to give a final nod to the deal that could put an end to the 10-year-old ownership dispute between the two liquor czars. Chhabria camp has remained tight-lipped on the development indicating that several finer details of the transaction were still unresolved.

As part of the deal, Mr. Chhabria would walk out of Herbertsons with BDA Ltd, a subsidiary company, which owns the popular whisky brand Officers’ Choice. However, there is no clarity on the issue of losses incurred by BDA, which is carried on the books of Herbertsons. (HBL 1Dec)

Scottish & Newcastle picks up 37.5 per cent in UBL United Breweries Ltd (UBL) on Sunday said that it had signed an agreement with UK-based beer major Scottish & Newcastle (S&N) Plc where S&N would pick up a 37.5 per cent stake in UBL. The total size of the deal, which includes an open offer and issue of preference shares, works out to Rs. 9.40 billion. Following the agreement between the two parties, S&N will receive 17.5 per cent of UBL’s equity by way of a preferential allotment for a sum of Rs. 2.17 billion at Rs. 575 a share.

“S&N would also invest around Rs. 2.47 billion in UBL by way of non-convertible redeemable preference shares with a coupon rate of 3 per cent,” UBL chairman Mallya said. Following this, S&N will make an open offer to acquire up to 20 per cent of the equity of UBL at Rs. 575 a share, Mr. Mallya said. (FE 20 Dec) Post-open offer, S&N will hold 37.5 per cent in UBL whereas Mr. Mallya’s stake will come down from 51 per cent to 37.5 per cent. If the foreign company fails to get 20 per cent shares through the public offer, the company will issue warrants enabling it to shore up its stake at 37.5 per cent, Mr. Mallya said. (HBL 20 Dec)

Vol. 1-05 © GIRACT 2005 39


Snacks Snacks, Biscuits, Confectionery, Chocolates

Nutrine to expand product

range Nutrine Confectionery Co. Pvt. Ltd, the market leader in sugar-boiled confectionery plans to expand its product range to deposit candies. Slated for launch in the next couple of months, the company plans to introduce around four to five brands under this new candy range. It is currently installing a new process line at a cost of Rs. 100-120 million at its facility at Chittoor in Andhra Pradesh.

Meanwhile Nutrine is also adding another 600 tons per month capacity at its factory. It now has a capacity to produce approximately 2,000 tons of confectionery a year.

Mr. Vikram Reddy, Managing Director said that Nutrine has outpaced the market’s sluggish growth of five per cent and has grown by around ten per cent. While it finished fiscal 2004 with a sales turnover of Rs. 1.8 billion, it projects a turnover of Rs. two billion for the current fiscal. Nutrine’s Maha-Lacto brand itself is a Rs. one billion brand, he pointed out.

(Continued on next column)

Nutrine to expand (Continued) In sugar-boiled confectionery, Nutrine commands an approximately 28 per cent market share. The organized market for confectionery, chocolates and gums is Rs. 16 billion, while the sugar-boiled confectionery is Rs. 7.5 billion in which Nutrine leads. Almost 80 per cent of this market comprises products at the 50-paise price point. (HBL 11 Dec)

Merisant attracted to mint & chocolate market Merisant, essentially a table sweetener maker, plans to enter the sugar-free confectionery market in the country.

Though Merisant’s interest in confectionery, dominated by global giants such as Cadbury, Nestle, Perfetti and Wrigley, comes as surprise, the move is obviously driven by growth concerns. Despite years of familiarity, tabletop sweetener remains a small category with a size of Rs. 500 million. Of this 60 per cent is controlled by Zydus Cadila’s Sugar Free.

Having introduced its chocolates recently in the Middle East under the ‘Equal’ umbrella, Merisant India is now exploring the possibility of introducing mints, chocolates and other products in India. (ET 28 Dec)

indianews october november 2005 - · pdf filep.21 cryogenic technology for ice cream ......

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