Category — Food Processing

60 Global Food Brands to Set Up Outlets in India

More than 60 global food and beverage brands, including  U.S.-based Planet Hollywood and pizza chain Little Caesar’s, Singapore-based Sarpino’s Pizzeria, Finland’s Hesburger, and Dubai-based Ice Cream Lab are planning to enter India, investing an estimated $1 billion and opening as many as 5,000 outlets over the next five years.

These brands are seeking local partners to take advantage of the $60 billion food services market in India, according to FranGlobal, the overseas arm of Franchise India Holdings Ltd.

“Planet Hollywood and the connection with Bollywood is a marriage made in heaven. The symmetry and compatibility between the two is very strong. We are delighted to have the opportunity to introduce our brands in this huge, exciting and dynamic marketplace,” Alex Garland, managing director for Europe, Middle East and Asia at Planet Hollywood, said.

A Burger

LiveMint reports that according to a joint report published by the National Restaurants Association of India and consulting firm Technopak Advisors the food services market in India is projected to reach $74 billion (Rs4.98 trillion) by 2021. The market is growing at an annual average rate of 10%.

November 7, 2017   No Comments

Indian and Foreign Companies commit to $11 billion in Food Sector

Speaking at World Food India 2017 in New Delhi,  India’s Finance Minister Arun Jaitley said, “Food processing is going to be one of the principal industries of India in the future. The farm to kitchen chain is going to change in India, like elsewhere, with increased agricultural production, better storage facilities, more food processing and changing consumer food preference.” Jaitley holds one of the most powerful posts in Prime Minister Modi’s cabinet and is considered part of his trusted inner circle.

Food processing

Food processing

The three-day food fair ended with 50 memoranda of understanding  signed and an investment commitment of $19 billion of which $11.25 billion will be from the private sector.  For example, PepsiCo signed an MoU worth $2 billion  to set up a food and beverage plant, Coca Cola will invest $1.7 billion in juice bottling and fruit processing plants and equipment, while Indian companies ITC and Patanjali committed an investment of  $1.54 billion each in this sector. Amazon signed an MoU in the food retail sector.

The Indian food market was worth $193 billion in 2016 and is expected to cross $540 billion in 2020, reports India Retailing. The sector has been growing at the rate of 12 percent annually.

Food Processing Minister Harsimrat Kaur Badal said, “100 percent foreign direct investment is   allowed in this sector through the “automatic” route and we have seen inflows increase 40 percent over the last year.” The industry enjoys many fiscal incentives, including preferential credit under priority sector lending, she added.

 

 

November 7, 2017   No Comments

Cargill to Invest Additional $240 Million in India

Minnesota-based Cargill said it will invest $240 million in India over the next five years in its business of edible oil, cocoa and chocolates, starches and sweeteners, and animal nutrition. This announcement was made at the World Food India Conference held in Delhi in early November by Cargill Asia Pacific CEO  Peter Van Deursen, at a MoU signing ceremony in the presence of Harsimrat Kaur Badal, India’s minister for Food Processing.

Cargill Logo

Van Deursen said, “India is an important market for us and this increased investment demonstrates our commitment to the country and the development of its agriculture and food processing industry,” reports BusinessLine.

The company employs more than 3,500 employees in India. Last year, Cargill inaugurated its first wet corn milling plant in India, set up with an investment of $100 million. The company also inaugurated a new dairy feed mill in Bathinda, Punjab, and its largest business services center in Bangalore.

November 7, 2017   No Comments

India is Fastest Growing Market for Hershey

For Pennsylvania-headquartered The Hershey Company, India has emerged as the fastest growing market in Q3 when Hershey India recorded a strong double digit constant currency net sales growth of 16 percent, overtaking Brazil and Mexico, and exceeding the company’s plans.

The Times of India reports that outside of North America, India is one of only four focus markets for Hersheys, the other 3 being China, Brazil and Mexic0. CFO Patricia A. Little said, “Our transition of the India portfolio is enabling a higher margin business, and we are on track to expand gross margins here by 1,000 basis points in 2017.”

Hershey's Chocolates

“We anticipate an investment of about $50 million during the next five years as we focus on growing and expanding our presence in India. India is one of our key International focus markets and we are investing to build this important business,” chairman and managing director, Hershey India, Praveen Jakate said. “This is enabling adjustments in the local marketplace that should result in a sustainable operating model,” he added.

 

 

 

November 3, 2017   No Comments

Seafood Park Launched in Odisha, India

The Industrial Infrastructure Development Corporation of the state of Odisha in India, set up a 152-acre “Seafood Park” where food processing companies can locate their factories. The $21 million park has been approved under the Mega Food parks project of the Federal ministry of food processing industries.

The project will have 41 processing units which will provide plug and play infrastructure and access to common facilities such as prepping and post-processing areas, ice plants, polythene and packaging units as well as a research and development facility. The Seafood Park can process 90,000 million tons of seafood per year.

fishing net

Falcon Marine Exports Ltd, Magnum Seafoods Ltd, Utkal Exports and Coastal Corporation Ltd. are some of the companies that have invested in operating units in the Park. The government of Odisha has set up a target of  $3 billion in seafood exports annually in the next five years — a substantial increase from the current $390.5 million.

October 30, 2017   No Comments