Category — Food Processing

India’s Pepper Exports to U.S. Command Higher Price

With sellers of pepper demanding higher prices, India’s pepper market traded at a higher rate this month. Prices of imported Vietnam pepper and exchange-released pepper have also increased, market sources told Business Line.

Pepper

Indian export prices were at $8,400 a ton cf for Europe, and $8,650 a ton cf for U.S.A.

June 11, 2017   No Comments

Metro Cash & Carry is Well Established in India

Headquartered in Dusseldorf, Germany, Metro Cash and Carry launched its business-to-business wholesale concept in India in 2003. The company is a one-stop solution for business customers such as mom and pop grocery stores, small retailers, hotels, restaurants and caterers, and offices.

Sanjay Kumar, journalist for IndiaRetailing, spoke to managing director and CEO of Metro Cash & Carry India, Arvind Mediratta regarding many aspects of the company’s functions in India.

Metro Cash and Carry MD and CEO Arvind Mediratta

Arvind Mediratta

Excerpts from the interview:

 On the opportunities and challenges of doing business in India

Mediratta: The Indian market is extensive and diverse. This provides us with both opportunities and challenges. In India, what works in the north will not work in the south because of the penetration of regional and local brands. We have to localize according to the market.

On expanding the company’s footprint

Mediratta: Since the organized wholesale market in India is growing at an even higher rate than modern retail, there is no dearth of opportunities in the country. Recently, we revamped our India operations and split it into North-East and South-West, to sharpen our regional focus. We will continue with our focus on these markets while also keeping an eye on emerging markets in Tier II and III cities. A cluster approach to markets is the best way to grow the business.

On customizing solutions and services to serve the diverse needs of specific regions

Mediratta: We have a simple strategy to suit diverse needs – we listen to our customers. Goods are sourced locally and are tailor-made to meet the specific demands of the region. We are constantly engaged in customer interaction to ensure that we understand the pulse of the market and provide products and services accordingly.

On the potential for growth of big box retailers like Metro in India

Mediratta: India has been growing at the fastest pace in its economic history. The growth potential has increased manifold. The Government’s decision to allow 100 per cent FDI in food retail is a welcome step. The infrastructure and supply chain is improving and the Internet has demolished the aspiration lag between big and small cities. The Indian retail and wholesale market offers great potential and bright prospects for international and domestic players.

On Metro’s retail ecosystem

Mediratta: Metro Cash & Carry is the country’s first HACCP-certified wholesale retailer. We ensure that all our 23 stores’ in-store activities, as also procedures involving sourcing, supply chain, stocking, and point of sale comply with the highest standards of cleanliness and hygiene. All our suppliers are given systematic training on meeting customer requirements in terms of food quality, safety and traceability.

Fair prices and guaranteed and transparent payments are credited directly into a farmer’s account in less than a day. Metro regularly conducts Trader Support and Partnership programs. We share best practices with small grocers in planogramming, assortment planning, store layout and inventory planning to improve their profitability.

On the next big change that is coming in retail

Mediratta: Whether online or offline, buying and selling cannot afford to remain mono-channel any longer. Only those players can envision a long and rewarding future who are able to fold into the Omnichannel approach.

I foresee a huge proliferation in the number of categories and sub-categories with customers becoming more and more experimental.
a) Health & Wellness: Organic food, health supplements, fitness equipment, apparel and personal care products
b) Experience: Media, travel, entertainment, home, gaming, sports and luxury categories
c) Staying Connected: Highly integrated smart homes, smart kitchens, telecom, transportation and IT products
d) A Fair World: Socially, environmentally, and ethically fair products such as cage-free eggs and vegan products

On the difference between 0perations in India vis-a-vis the rest of the world

Mediratta: The Indian market is very different from the other countries where Metro operates in. To compete in a fiercely competitive market with a high real estate cost and a Maximum Retail Price regime requires one to be very nimble and cost efficient. We learned our lessons in the Indian market very early and started adapting ourselves to suit the customer needs.

June 10, 2017   No Comments

Mexico’s Grupo Bimbo Enters India

Mexican company Grupo Bimbo, the world’s biggest baked goods manufacturer acquired a 65 percent stake in Jaipur, Rajasthan-based Ready Roti for an undisclosed amount. The move is a sign of Bimbo’s interest in emerging markets.

Ready Roti manufactures many kinds of breads, buns, pizza bases, as also rotis or Indian bread under the brand name Harvest Gold.

A packet of Ready Roti

Just-Food reports that Ready Roti has four plants and more than 500 workers, and that its annual sales are about $48 million.

 

May 30, 2017   No Comments

UberEats launches in Mumbai

San Francisco-based Uber launched its initial UberEats service in Mumbai, and by the end of this year the company plans to expand this service to six cities in India. The country’s online population is tipped to reach 450 million-465 million people by June 2017, according to a report co-authored by the Internet and Mobile Association of India, bringing with it the potential to connect people to taxis, cars, food and more.

“Mumbai is home to a booming food industry with a vibrant food culture offering both global and local cuisines. The introduction of UberEats in India, with Mumbai as the first city, is a major step in our global expansion and showcases our commitment to the region,” Bhavik Rathod, Head of UberEats India, said.

Uber Eats Food Service

TechCrunch says: Uber has thrown more focus on Eats lately, beyond its ongoing global expansion. Recent updates added tailored recommendations, customizable drop-off directions for drivers and new filtering options, while it also introduced a restaurant management service that helps restaurant partners get actionable insight through data.

 

 

May 15, 2017   No Comments

India’s Shrimp Industry Shows Steady Growth

India’s export of shrimp was 382,959 tons in Calendar Year 2015, up 9.8 percent from the previous year
India’s cultured shrimp production in the year ending March 2015 was about 426,500 tons, up 30 percent from the previous year (Figure 1). From  2005  to 2015, shrimp production has grown at a compound annual growth rate of 13 percent.
Fig 1. Cultured Shrimp Production Rising

Fig 1. Cultured Shrimp Production Rising

The introduction of white leg shrimp (Litopenaeus Vannamei, or Vannamei) in 2009 spurred growth in shrimp production during the last few years and displaced sales of the other major shrimp species such as the tiger shrimp (Penaeus Monodon) which was found to be susceptible to disease. In FY 2015, the production of the white leg shrimp (Vannamei species) rose to  353,000 tons, which was 81 percent of the total shrimp production in India. This species is preferred since it has a fast growth rate, is disease resistant, needs lower feed requirements, and exhibits a higher survival rate.  In 2015, the area under shrimp production in brackish water aquaculture was 121,600 hectares, which was up from 102,500 hectares in 2010. Industry sources indicate that shrimp production accounts for 25 percent of the brackish water aquaculture.
Accounting for 65 percent of the total shrimp produced in India, the state of Andhra Pradesh is India’s largest cultured shrimp producer. This is followed by West Bengal, Tamil Nadu & Puducherry (earlier known as Pondicherry), Gujarat, and Odisha. Tiger shrimp (Penaeus Monodon) are farmed in the states of West Bengal, Odisha and Kerala, while the Vannamei species is preferred in the states of Andhra Pradesh, Gujarat, Tamil Nadu and Odisha.
Although most of India’s shrimp production is exported, its broodstock is imported. According to industry sources, India imports 98 percent of total broodstock specific-pathogen-free (SPF) Vannamei broodstock from U.S.A., and in Calendar Year 2015 import of broodstock from the U.S. reached $10.8 million  In addition to broodstock, Artemia Cysts, which are used as live feed during the larvae raising operations in shrimp hatcheries, are imported as well. In CY 2015, 97 percent of India’s Artemia Cysts worth $15.44 million were imported from the United States, says a GAIN report.

May 15, 2017   No Comments