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Indian market tastes pretty sweet for Orana
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Saturday, 21 April, 2007, 08 : 00 AM [IST]
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a bit of Orana in almost all leading brands of juices or nectars. As million tongues tasted it sweet, Orana found Indian market too sweet. Now they are set to turn whey drinks too tasty. Niels Osterberg, director of the Denmark-based Orana A/S, talks to Joseph Alexander of his India experience and plans.
Leading Danish food processor Orana has an uncanny history of meddling with the tastes of the people around the globe for over 75 years. They did the same with Indian consumers too, by floating Orana India three years ago and trying to stir up our tastes. True, Indian market too tasted pretty sweet for them in a short span.
"We sell tastes across the globe and we found that Indian market is very tasty too,'' acknowledges Niels Osterberg, the Orana India chairman and director of the Denmark-based parent company, gleefully.
After reaching the tongues of millions through leading brands of beverage and dairy products in India, they are set for big plans including the launching of whey drinks, that is still a not-so-tasty stuff for the Indian manufacturers.
Orana has no final product, but a large number of leading brands, be it Activ or Real from Dabur or some small names, will have something from Orana. It can be the crucial formula, some foreign fruits or some tasty blends. Its clients across the globe include Carlsberg, Coca-Cola, Fonterra, Foremost, Arla and Nestle.
"We develop and sell tailor-made fruit-based raw materials or semi-manufactures for the beverage industry, dairies and other food producers. We source commodities from one country and supply them to food producers elsewhere in the world,'' says Osterberg, in an interview to Food and Beverage News.
"Indian market is very interesting and it has all the ingredients for a huge growth. The changing food habits, craze for westernised foods and sprouting of retail food joints give a huge potential,'' he explains why his company put focus on India ahead of China three years back.
Orana is involved in fruit processing, right now in the facilities of other firms in India. But has its own R&D centre at Gurgaon. Their product range includes fruit-based raw materials for fruit youghurt, milk drinks, whey drinks, ice cream, beverages like juices, nectars, juice drinks, ice tea, carbonated drinks, and bakery products like baking jam and pie filling. Most of the products are developed for a particular customer (food producer) as per their parameters. They also provide transfer of know-how, technical assistance and training.
Orana has over 50 products in the markets of South Asia and the clientele includes names like Dabur with whom they have been associated for over a decade.
"The Middle East market contributes about 35-40% of our global business, worth over $30 million (excluding the commodities). In another five years, we hope to see India and the South Asia market taking over the Middle East region,'' Osterberg said. "Going by the growth in India, we will set up our own manufacturing unit in a couple of years. Our philosophy is to build the market and then build the factory,'' he said.
"We are growing 100% annually and it will emerge as a Rs 100-crore subsidiary of the group in the next five years. The juice and nectar market is also growing 100% in the recent years,'' chipped in Praveen Dang, manager of Sales (South Asia).
"We are now focusing on around 50 small players in the market and they have the potential to emerge as big players. When we entered the Far-East 20 years ago, a customer bought just 1500 kg of fruit material from us. Now that same customer buys over 700 tonnes at one go. That is the growth we saw there and I foresee here in India too,'' Osterberg said.
Apart from their existing range of products, Orana is in talks with some potential customers for supplying whey drinks, which may come as a new generation cheaper and quality stuff in the market very soon.
"For most cheese or those in the dairy products manufacturing, whey is a waste product. But it can be utilised profitably. It can be successfully incorporated into fruit-based drinks with an excellent taste and body,'' he explains.
Whey can actually be consumed in fruit drinks without the consumer recognising the characteristic taste of whey. It has high nutritive value and is a low-fat product.
"We anticipated this development and have consequently put much effort in reducing and masking the characteristic whey taste with very good result. We have developed a series of fruit-based whey drinks with the content ranging from 10 to 65%. They can be marketed as energy drink, health drink, milk protein drink, low-fat drink or lactoserum drink,'' Osterberg said.
It has also developed some compounds of whey with apple, banana, blackcurrant, guava, kiwi, mango, lemon, etc. But still there is some stigma attached to the minds of men in marketing about selling whey products. But, people at Orana think firmly, that time is not too far for whey making an impact in the drinks market of India.
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