Gyan Research weekly newsletter on Food processing sector giving policy news, industry, investments news and weekly snapshot

1. © Gyan Research and Analytics Pvt. Ltd., 2015 1
Policy News
 USFDA declares Maggi safe
The United States Food and Drugs Administration (USFDA) has found the lead level in Maggi acceptable
for US consumers, although a ban continues in India. Health supervisors in the UK, Singapore, Canada,
Australia and Vietnam have also found Maggi safe for human consumption. The Indian government filed
a case for unfair trade practices in April 2015, false labeling and misleading advertisements against the
company and is seeking INR 640 crore in recompense.
 ICDS faults eight states in food procurement
The Integrated Child Development Services (ICDS) has 'alleged' that there were irregularities in the
procurement of Supplement Nutrition Food sponsored by the central government by eight states -
Odisha, Madhya Pradesh, Assam, UP, Maharashtra, Jharkhand, Gujarat and Haryana. The Women and
Child Development Ministry has issued an advisory to all states and Union Territories (UTs) to firmly
follow e-procurement procedure under ICDS scheme to ensure transparency and efficiency. This will help
in the monitoring of the quality and hygiene of the food being supplied.
Industry News
 FDA finds detergent, frozen fat in Mother Dairy milk
The Food and Drugs Administration (FDA) department found traces of detergent and frozen fat in Mother
Dairy’s "full cream" and "toned" milk samples after a re-test of milk samples collected in Ghaziabad was
conducted in a Kolkata based laboratory. Mother Diary had objected to the initial test results by the
State Laboratory at Meerut which had found the quality of milk sub-standard and containing "low fat”.
 Carl's Junior to target young audience and not kids
American burger chain Carl's Junior plans to target young, hungry audiences demanding high quality and
sophisticated food, unlike their rivals such as McDonald's that is aimed at kids. Hence, Carl’s Junior will
not focus on pricing. The company aims to open five restaurants in a cluster approach, first in Delhi,
followed by Punjab and Rajasthan. The approach will help them to reach economies of scale by
minimizing supervision cost, recruitment and branding before moving on to other regions of the country.
 Nestle’s half-yearly sales miss expectations
Nestle recorded a slightly worse-than-expected half-yearly sales, hurt by the ban on Maggi noodles in
India. The company’s reported sales fell by 0.3 percent to USD 43.87 billion up to June as against 0.1
percent dip expected by the analysts. Net profit declined by 2.5 percent to USD 4.63 billion as against the
poll average estimate of 2.3 percent rise to USD 4.85 billion.
Food Processing News
August 8, 2015 – August 14, 2015

2.  Nestle evaluating innovation options
Nestle is assessing several other innovation choices in the space that Maggi noodles had occupied. The
company believes it has strong R&D capabilities in food technology, which can drive other innovation and
renovation options.
 Jubilant Food Works post 4.6 percent growth
Jubilant Food Works, the quick service chain and operator of Domino's Pizza and Dunkin' Donuts outlets,
posted a 4.6 percent year-on-year surge in same-store sales in the April-June quarter. The reported year-
on-year net profit rose 6 percent for the quarter and stood at INR 29.5 crore. This indicated a recovery in
its business from a year ago.
Investment News
 Wagh Bakri to purchase 10 tea gardens in Assam
Wagh Bakhri, a Gujarat-based tea group, plans to buy up to 10 tea gardens in Assam and will provide INR
250 crore to fund the acquisitions. The company also aims to have a revenue growth of 10 percent to 15
percent per annum. Wagh Bakhri has a dominating market share of 65 percent in the Gujarat packet tea
market and a presence in the western and northern parts of the country.
 Food processing units in Tiruvuru, Mylavaram soon
Tiruvuru and Mylavaram Assembly will witness a burst of investors activities to set up food processing
units. An INR 20 crore unit has been proposed, which is likely to offer employment to 400 local people. A
mango pulp processing unit, a joint venture between a US-based company and a local firm, is planned in
an area of 10 acres near Gollamandala village. Bamboo investors are also being encouraged to set up
their units.
© Gyan Research and Analytics Pvt. Ltd., 2015 2
Food Processing News
August 8, 2015 – August 14, 2015
Weekly Snapshot
Exports of Processed Food and Related Products
Financial Year Exports (USD billion)
FY2011 9.3
CAGR 23.3 percent
FY2012 17.3
FY2013 21.7
FY2014 22
FY2015 21.5
Source: Agricultural and Processed Food Products Export Development Authority

3. © Gyan Research and Analytics Pvt. Ltd., 2015 3
Food Processing News, August 8, 2015 - August 14, 2015
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