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“Chitale Group strives to maintain human-tech balance”
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Tuesday, 16 December, 2014, 08 : 00 AM [IST]
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fiogf49gjkf0d The Chitale Group has expanded its wings to include dairy, agro products, Indian sweets and instant mixes. With focus on innovation and technology, the Pune-based group has helped the growth of food processing sector in India.
In an interaction with Abhitash Singh, Girish Chitale, a partner in the group’s dairy business, shares details on his company’s achievements and growth. Excerpts:
The Chitale Group has diversified into various categories. Which sectors do you operate in?
We operate mainly in dairy, and are known for sweets such as barfis, pedas and ladoos. Besides these, we offer namkeen and bakarwadi.
Instant mixes, such as gulab jamun, idli, medu wada, dhokla and khaman, are also our forte.
We operate a mango pulp production unit, with a 6,000 tonne production capacity. One of the products we make there is shrikhand.
The group is a success story as far as the implementation of technology in agri, dairy and food processing sectors is concerned. Comment.
The Chitale Group is constantly seeking to improve technology. We always seek a balance between technology and human resources, which are also very useful for the growth and success of our company.
We utilise technology when we have to avoid human error. From the farmer to the consumer, we implement technology at every stage.
Besides using our in-house technology, we have tied up with an American company, which is a leader in genetics.
We continuously train dairy farmers about the new technology used on farms to increase the production and ensure efficiency.
Farmers learn about time management, efficiency and improve awareness on technology from our training programme.
By gaining information about the usage of technology, farmers were able to produce quality milk, which fetched them good prices.
If better technology is used, everything, from collection to dispatch, can be controlled.
Inform us in detail about the growth of the Chitale Group in recent times.
We have always been a leading player, and this is possible because of diversification. We pay a great deal of attention to technology, training farmers and starting our own genetic laboratory. We continuously launch products.
Bakarwadi, a popular snack, is in great demand, both in India and overseas. We have 20 stores in Pune, and five each in Kolhapur, Sangli and Mumbai.
We are looking at expansion in the coming three years, and would also enter the lassi, cheese and paneer markets.
Brief us about the group’s contribution to the growth of India’s food processing industry.
We have always contributed to the growth of the Indian food processing sector in a number of ways.
We have tied up with food processors, dairy players, mithai players, manufacturers and traders’ associations to upgrade and share suggestions about the policies and regulations in the food processing and agriculture sectors.
Ultimately, the consumer should be winner; it is he who should get fresh and hygienic food products.
We have built cooperatives with 5,000 retailers. I think there should be competition in the food processing and agriculture sectors with the demands of the consumers.
We always support the food processing initiatives of the government.
Tell us about the quality of your products, and how it is maintained.
One of the main things we focus on is consumers’ appreciation. Nowadays, the consumer is very demanding and quality-conscious, and we always work hard towards providing them quality offerings.
To deliver the best each time is our philosophy since Chitale Bandhu’s inception.
We use a combination of traditional and modern technology to maintain our products’ quality.
Has inflation had any effect on the Chitale Group?
Milk is an essential component of people’s diets. And for the last one year the price of milk has increased several times.
Considering that it is used for dairy items, it has an impact on the industry. To a certain extent, inflation, caused by the global recession and the increase in the milk prices, has affected our business, but not by a large margin.
We have had a tough time, but then problems should be seen as opportunities.
The prices of raw materials are fluctuating. How is your company coping with these ups and downs?
The rule is that if there is surplus supply, the product’s price falls, and if the demand exceeds the supply, the price rises.
But this situation can be managed by the farmers if they use science and technology. The government needs to take the initiative. If they do so, the situation can be managed by 80-100 per cent.
Milk is the only commodity which fetches the farmers the cost of the final product. If the milk is priced at Rs 48 in the market, the farmer would get Rs 35-36 (or 72 per cent).
No other agricultural product gives returns of 70-plus per cent to the farmers. The raw material costs are also increasing, but we don’t have any problems with that.
How do you stay ahead of the competition?
Consumers’ demands and ambitions are my competition. Consumers have faith in Chitale Bandhu, for whom ethics and principles are of utmost importance.
My competition is not with big brands like Amul and others, but consumers’ feedback is important to me. Ultimately, we should have retainership.
I always strive for the convenience of consumers, because it is they who would keep me ahead of the competition.
What is your take on the Food Safety and Standards Regulations (FSSR), 2011?
The Food Safety and Standards Regulations (FSSR) 2011 must fix the responsibility on supply chains. It is one of the best standards practised in India.
They have differentiated adulteration. There are two types of adulteration - one is harmful, and the other is not.
Milk adulteration is one of the biggest concerns in the country and FSSR, 2011, set by the Food Safety and Standards Authority of India (FSSAI), have been able to curb adulteration in the country.
The standards set by the food regulatory body would motivate and encourage the stakeholders to take initiative.
They are also training the stakeholders, traders, manufacturers and food business operators (FBO) to comply with the new standards, so it is good for the consumers as well as the stakeholders.
FSSAI is also taking a step towards harmonisation, after which the Indian standards would be on par with the international ones.
There would be a connection between Codex and FSSAI. Inputs on harmonisation would be a good step.
Let us know about your company’s achievements in the recent past.
Chitale Group has a great deal of respect for the environment. The Maharashtra Pollution Control Board (MPCB) recently honoured us with the Vasundhara Award for controlling pollution and taking care of environment.
We encourage every company to become aware of the environment. We shouldn’t just look at the company’s profitability, but must also fulfill our responsibility towards the environment.
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