The Kerala government and CFTRI have signed an MoU to strengthen food safety initiatives through collaboration. CFTRI will boost the Food Safety Wing’s expertise in analysis and research. Rs. 56 crore has been allocated for lab upgrades. FSSAI has proposed new quality standards for dairy products relating to microbiological requirements. Several food companies like ITC, Nestle and Amul have launched consumer engagement campaigns to rebuild trust following safety crackdowns. Jamie Oliver's company will open a pizza outlet and Italian restaurant in India. ITC plans to launch a range of dairy products starting with ghee by the end of the quarter.

1. © Gyan Research and Analytics Pvt. Ltd., 2015 1
Policy News
 Kerala and CFTRI to intensify food safety drive
The Kerala government and the Central Food Technological Research Institute (CFTRI) have announced a
Memorandum of Understanding (MoU) to strengthen food safety initiatives. CFTRI is one of the 40
national research laboratories established under the guidance of the Council of Scientific and Industrial
Research (CSIR). The collaboration will boost the Food Safety Wing’s expertise in food safety analysis and
research. A fund of INR 56 crore has been allocated for the upgradation of the laboratories and other
technical facilities. A proposal to appoint 13 technical experts comprising of microbiologists and chemical
analyst is also under consideration.
 FSSAI issues quality norms
Food Safety and Standards Authority of India (FSSAI) has proposed quality standard norms for various
dairy products, including ice-cream, flavoured milk, yoghurt, among others. These norms relate to
microbiological requirements such as coliform count, aerobic plate count, staph aureus (Coagulase
positive), faecal streptococci and yeast and mold count. The proposal will also amend the existing norms
for milk, ghee, paneer, butter and other diary and meat products. The quality norms will come into effect
60 days after publication of the official gazette.
Industry News
 ITC, Nestle, Amul and other food companies hit consumer-connect button
Several food companies such as ITC, Nestle, Mother Dairy and Amul have started consumer engagement
exercises to win back trust after the crackdown over safety issues. Nestle, the worst hit, has launched
videos in which bachelors profess their love for Maggi, while food and cigarette major ITC has created
short films focusing on the safety of its Sunfeast Yippee noodles. Mother Dairy has come up with a social
media ad campaign showing its consumers on a plant visit and Amul is running mainstream ads that
highlight regular quality checks on their products. The companies have alerted teams involved in
procurement, processing and distribution to be extra careful. Call centres have also been trained to
handle consumer complaints promptly.
 Jamie Oliver's to launch in India
English celebrity chef’s namesake company Jamie Oliver will open a pizza outlet - Jamie’s Pizzeria - and
Italian restaurant - Jamie’s Italian - in India. For the first time, the pizzeria will have an independent
identity as a standalone restaurant. The two brands will be launched in the National Capital Region, but at
two different locations. The restaurants will not have any special dish for the Indian market, but will bring
dishes from their restaurants abroad. Both brands are being promoted by a joint venture between
Carnation Hospitality of Delhi and International Market Management (IMM) of London. The company
may consider expansion after getting first hand response from customers.
Food Processing News
August 29, 2015 – September 4, 2015

2.  ITC to enter dairy market with ghee
ITC intends to launch its range of dairy products, starting with ghee, by the end of this quarter. The
company has plans to roll out its dairy business in the next few years with butter, packaged milk, cheese
and chocolates, following ghee. Toward this end, it will set up milk processing units across the country,
apart from the existing one in Munger, Bihar. While the exact investment in the dairy business was
undisclosed, the company confirmed investments of INR 25,000 crore in foods in the next few years.
 Anil Group is restructuring
Ahmedabad-headquartered food and agri company Anil Group announced that it has undertaken
restructuring initiatives. The over INR 1,200 crore turnover company claimed that restructuring will have
greater value creation for the group's shareholders. Anil Ltd will become the main holding company and
other unlisted and group companies will be brought under its fold. The group believes that the proposed
realignment, to be completed by the end of this fiscal, will bring synergies between similar businesses
and put them on an accelerated growth path.
 Kamani Oil gets FDA licence
Kamani Oil Industries has become the first Indian edible oil firm to secure a Food and Drug Administration
(FDA) license for the manufacture of pharmaceutical grade oils and fats. The certification will reassure
customers about the reliability of their manufacturing process and their conformity with the rigorous FDA
regulations. The company’s Khopoli plant near Mumbai has a production capacity of 100 tonne per
month and meets the guidelines of Schedule M of Drugs and Cosmetics Act, 1940. The company can now
domestically produce oil and fat which were previously imported and is expecting. Currently, the overall
market size of pharmaceutical grade oils and fats is about 1,500 tonne a year.
Investment News
 Maggi fiasco drags down packaged food industry
The Maggi noodles controversy brought down the entire packaged foods industry by 9 percent in the
June quarter, as customers drastically reduced purchases. Ready-to-cook foods including oats, noodles
and soups all declined 9 percent as compared to a 5 percent growth in the year-ago period. The
beverages segment also fell 4 percent on seasonality, while the overall food segment's growth slowed to
4 percent from 9 percent in the previous year. A combination of issues such as food safety concerns,
early and erratic rains and cut back on consumer discretionary spending, among others hit revenues of
the packaged food sector.
 Lite Bite and HMSHost form JV
Lite Bite Foods and HMSHost have formed a joint venture (JV), Lite Bite Foods HMSHost, to develop
outlets at travel destinations across India. At an estimated investment of INR 100 crore in the next three
to four years, the JV will open outlets at highways, railway stations and airports across the country. With
51 percent stake, HMSHost will bring in suitable global brands to develop the operations side, while Lite
Bite Foods, with 49 percent stake, will look after business development. The JV is aiming at securing
revenues of around INR 500 crore in next four to five years.
© Gyan Research and Analytics Pvt. Ltd., 2015 2
Food Processing News
August 29, 2015 – September 4, 2015

3. © Gyan Research and Analytics Pvt. Ltd., 2015 3
Food Processing News
August 29, 2015 – September 4, 2015
Weekly Snapshot
Source: Directorate General of Commercial Intelligenceand Statistics
India Export Statistics of 2015-16 (April - May)
Product Quantity (MT) INR Lacs
Basmati Rice 779,529.24 464,680.4
Buffalo Meat 183,484.47 365,797.22
Non Basmati Rice 1,048,676.59 248,514.01
Guargum 61,803.89 74,350.8
Groundnuts 89,003.8 67,494.79
Cereal Preparations 54,746.13 53,768.26
Fresh Onions 235,943.84 44,479.75
Miscellaneous Preparations 60,122.22 41,983.79
Other Processed Fruits & Vegetables 45,108.85 38,940.35
Alcoholic Beverages 38,078.18 33,040.05
Dried & Preserved Vegetables 11,984.53 32,026.97
Pulses 47,129.92 25,763.72
Other Fresh Vegetables 69,775.03 24,404.02
Other Fresh Fruits 38,391.64 23,127.08
Milled Products 81,445.11 20,488.43
Jaggery & Confectionery 45,603.88 19,467.48
Fresh Mangoes 17,929.76 18,435.07
Cocoa Products 5,010.7 17,612.28
Wheat 111,574.67 17,513.28
Maize 122,994.04 17,460.68
Natural Honey 8,497.7 16,698.29
Other Cereals 86,976.63 15,647.84
Sheep/Goat Meat 3,923.02 14,728.55
Fresh Grapes 13,837.57 14,656.03
Dairy Products 5,791.1 12,302.08
Cucumber and Gherkins (Prepared & Preserved) 25,117.69 12,067.14
Poultry Products 95,453.4 10,333.78
Floriculture 3,490.85 7,732.07
Mango Pulp 12,050.22 7,369.04
Fruits & Vegetables Seeds 1,497.93 5,073.2
Walnuts 376.69 2,075.01
Albumin (Eggs & Milk) 253.46 1,822.29
Casein 405.33 1,772.46
Animal Casings 27.87 235.07
Processed Meat 70.54 190.29
Other Meat 0.16 0.12
Total 3,406,106.65 1,772,051.69

4. © Gyan Research and Analytics Pvt. Ltd., 2015 4
Food Processing News, August 29, 2015 – September 4, 2015
Market Entry
Strategies
Market/
Marketing
Research
Pre-Feasibility,
Feasibility & TEV
Studies
Equity
Research
& Valuation
Economic
Intelligence
Our Business Practices
Business
Research
Central Delivery
Centre
BD-9, Sector-1,
Salt Lake City
Kolkata - 700 064,
India
Phone: +91-33-
40060084
Corporate Office
LG 37-38, Ansal
Fortune Arcade,
Sector - 18,
Noida - 201 301
Delhi NCR, India
Phone: +91-120-
2511945
E-mail: reports@gyananalytics.com
Website: www.gyananalytics.com
Branch Office -
Mumbai
Branch Office
- Bangalore
Branch Office
- Hyderabad