pasta products like noodles, macaroni, vermicelli etc
Factors affecting packaging
The type of food and its composition, moisture, fat, protein, flavour etc
Form and shape of the product – smooth, regular, irregular, with sharp edges etc.
Nature of the product – crisp, brittle, sticky etc.
major ingredients – oil based, fat rich,dry
Biological spoilage due to micro-organisms
Abiotic spoilage due to chemical reactions like oxidation, hydrolysis and enzymatic reactions.
like light, humidity and temperature.
Time to cook
Time to consume
Use of energy (heating, cooking etc)
Requirement of cooking skills
Variety in taste
Food safety & hygiene
Value parameters contd.
Shelf life - packaging
Taste and quality
Easy to carry
Last touch (mother/wife)
Value parameter mapping
Distribution chain for small retailer Consumer Source :Friend from HUL
Distribution chain for Big retailer Consumer Source :Friend from HUL
Process Buy Plant Buy Raw material Manufacture Supply Plant manufacturers Wholesalers
Manufacturing- corn curls
Equipments required Ref: Labh group of companies Flour mixer To mix corn meal with water to prepare the flour for Kurkure Rotary dry extruder To cook the corn meal and extrude the Kurkure from the die. The Rotary Die twists and curls the meal before extruding giving a uniform texture Automatic Frying Machine To fry the Kurkure in hot cooking oil. The uniform frying introduces the crunchy taste to the Kurkure Cooling Conveyor To cool the fried Kurkure and reduce the temperature before packing Automatic Seasoning System To add required seasoning to the fried and cooled Kurkure to give the different flavors to them Pouch Packing Machine To pack the Kurkure into attractive printed pouches with gas flushing
Equipments/Land Cost Equipments Description Qty Unit price cost Plant combo 500 kgs per 8 hr shift 1 1200000 1200000 Working table 1 5000 5000 weighing Machine To weigh raw material and finished products 2 10000 20000 Big containers to do any intermediate processing if required 1 2000 2000 Equipment cost 1227000 Facility Rent area 5000 sq ft(MIDC Turbhe) source: magic bricks 10000 Label & Packing material 750000
Raw material Raw material required Qty Required Per KG cost Wheat flour 30 Salt 10 Seasoning powder Edible oil 50 preservatives
Human resource Human resource requirement manager 1 Production/technical specialist 1 machine operators 3 labours/helpers 6
Food act - Generally
if the article sold by a vendor is not of the nature, substance or quality demanded by the purchaser and is to his prejudice, or is not of the nature, substance or quality which it purports or represented to be;
if the article contains any other substance which affects, or if the article is so processed as to affect, injuriously the nature, substance or quality thereof;
if any inferior or cheaper substance has been substituted wholly or in part for the article so as to affect injuriously the nature, substance or quality thereof;
if any constituent of the article has been wholly or in part abstracted so as to affect injuriously the nature, substance or quality thereof;
if the article had been prepared, packed or kept under insanitary conditions whereby it has become contaminated or injurious to health ;
if the article consists wholly or in part of any filthy, putrid, rotten, decomposed or diseased animal or vegetable substance or is insect-infested or is otherwise unfit for human Consumption;
India - Prevention of food adulteration act, 1954 of India
FDA – USA 1938
The Food Standards Act 1999 – UK
The EU integrated approach to food safety - European Food Safety Authority (EFSA)
Food Safety standards- ANZ
Packaged Food – Laws India
Food Safety and Standards Act , 2006
Prevention of Food Adulteration Act (PFA) 1954 and Rules
The Standards of Weights and Measures Act, 1976
Standards of Weights and Measures (Packaged Commodities) Rules, 1977
Meat Food Products Order, 1973 (MFPO).
NOC from fire angle from Fire Dept.
Approval of Building plan from industrial centre corporation / local administration.
Power Release Certificate
Consent to Establish under Environment Act
High grain foods
Automatic approval of foreign equity participation up to 51%
Income tax rebate of 100% of profit for five years and 25% of profits for the next years for packaging of foods
The National Policy aims to increase the level of food processing from 2% to 10% in 2010 and to 25% in 2025
The level of institutional credit to be provided by banks and financial institutions has been increased from US$ 17.41 billion during 2003-04 to about US$ 23.76 billion in 2005-06
Automatic approvals for foreign investment up to 100%, except in few cases, and also technology transfer
The government has decided to give a boost to research and development in this sector with its decision to set up the National Institute for Food Technology and Management in collaboration with Cornell University of the US.
Zero import duty on capital goods and raw material for 100 per cent export-oriented units. Custom duty on packaging machines reduced. Central excise duty on meat, poultry and fish reduced to 8%
Income tax rebate allowed (100% of profits for 5 years and 25% of profits for the next 5 years) for new industries in fruits and vegetables besides institutional and credit support.
Government - developing 30 mega food parks which would cover the entire food processing cycle 'from the farm gate to the retail outlet'.
Government would provide a grant of US$ 12.53 million for each one, private investment to the tune of US$ 75.21 million would be encouraged in these parks.
The first five such parks would be set up in Punjab, Maharashtra, Andhra Pradesh, Jharkhand and the North-East region in the first phases.
Osterwalder Business Models Customer Acquisition Wholesaler C&F Agent Retailer big small Tasteing joints
C & F agent
Raw Materials procurement, Manufacturing,
(Outsourcing), SG & A, Marketing, Advertising
Raw material suppliers
C& F agent
Procurement of raw material
Mixing of raw material
Checking the standards
Young and busy
New flavors, products, quality, attractive packaging
Old and choosy
Easy to digest, less spicy, natural flavor
Value for money, smaller packs
Preference of each segment
Long shelf life
Three product range based on segmentation
Old & Choosy
Food based on Atta, vegetable and cereals
Decent packaging that highlights nutrition values
Promotion near community stalls, temple
Young & busy
New flavors like Italian, cheesy..
Attractive and colorful packaging
Taste trails at the malls and meeting joints
Less price as compared to rivals
Participation – invite recipes
Promotions as healthy foods
Use of natural ingredients like vegetable
Packaging - focus on nutrition
Price is no longer a deciding factor for most of the consumers