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“We are looking for a turnover of 40% of our total sales”
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Monday, 09 June, 2014, 08 : 00 AM [IST]
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fiogf49gjkf0d  Goa-based Target Innovations is a leading manufacturer and exporter of metal detection and other product inspection systems. The company is known for its R&D activities, and strict adherence to quality parameters and delivery schedule. Rajesh K Gopinath,director, Target Innovations, in an email interview with F&B News shares details on metal detection and inspection market in India in general and his company in particular. Excerpts:
How big is the metal detection and inspection market with regard to food processing and packaging industry in India and at what rate is it growing?
As per a recent study, global sales of food processing and packaging machinery are expected to climb 7.3 per cent per year to $53.3 billion in 2016. The Asia-Pacific region will record the fastest demand gains, led by China, India, Indonesia and Thailand.
Food processing and pharmaceutical business are very much on demand in Indian markets and producers are rapidly increasing their production strength to meet the demand. The demand for processing and packaging machineries is also high. Hence the metal detection business is also growing drastically. Every year, our selling percentage is increased by at least 25% to Indian markets. As more and more food processing industries are coming up, we foresee a huge increase in this equipment in the future too.
How aware and particular is the Indian food processing industry when it comes to installing metal detection and inspection equipment when compared to Western countries?
Due to implementation of HACCP (Hazard Analysis and Critical Control Points) and other food safety certifications, today the Indian food processing and packaging industry is totally aware of the importance of metal detection and inspection systems and are selecting the best and the most sensitive metal detection systems from the world market so that they cannot compromise on quality and product safety issues. This had also boosted the foreign players to introduce into the Indian market to compete with local manufacturers.
In initial stages, the installation of metal detection system was just a fancy and an eyewash for the customers by manufacturers, but today, all food manufacturers know the importance well and various auditors made it strict that the food manufacturer used metal detector to its capacity and the calibration of the metal detectors were noted and done in due interval of production.
Most Indian food processing industries depend upon food processing equipment from abroad. Does this aspect hamper your growth in the Indian market?
Today, Indian products are competitive and are at par with machines from USA and Europe. We have the complete knowledge and know-how of the machines and can produce much better quality than before. Hence most Indian food processing industries depend currently on Indian machines as they are much cost-effective and can provide better and quick after sales services. Hence the intervention of foreign companies or joint ventures had hardly made any effects on Indian manufacturers.
Does demand for metal detection & inspection equipment vary according to the needs of the segment i.e., ice cream, dairy, biscuits, beverage, chocolate and so on? If yes, how do you meet this demand?
Yes, as far as metal detectors and inspection machines are concerned, the specifications and data vary according to the installation and products.
We are an expert in manufacturing custom-built metal detection solutions so as to meet the exact requirement of the end-users. This had given us the opportunity to work with many manufacturers in different food sectors with different product profiles. Our duty is to give the exact machine with most suitable sensitivity to the end-users with world-class quality and best after-sales supports.
Is price point an issue with regard to both organised and unorganised players belonging to the food processing industry installing metal detection & inspection equipment?
Yes, price is the major part the customer thinks when buying metal detectors. The very first challenge faced by the organised metal detection manufacturing industry in India is competition from the unorganised manufacturers.
There are various major players in India manufacturing metal detection system and product inspection systems for food processing industry and are located at various cities in India.
Also there are some unorganised players whose existence hampers the price value of the machine. Their intention is only to sell the machine and vanish from the market in very short time. There are companies which are operated with less than five persons and even are not qualified with sufficient technical back up or support or without a proper factory or assembling units. But some customers / buyers realise this only after purchase and end up in chasing the supplier for service supports or documentations or when the equipment fails to comply the audit requirements. As metal detection systems are vital equipment for HACCP, the wrong choice of machine and manufacturer can cause a huge loss in production and reputation of the food manufacturer and also a serious food safety issue. Hence the buyer needs to think and study thoroughly about the ability, past records, existing users / customers by the metal detector manufacturer prior to finalising the order.
Who are the major players in the market and what are their shares? What is your share?
We manufacture approximately 200 to 250 metal detection systems annually. Latest internal report indicates that we are one of the largest manufacturers of metal detection system in India and we are proud to be associated with many reputed food manufacturers, OEM suppliers, food consultants in India and abroad.
After the implementation of the Food Safety & Standards Act, 2006, food safety has become a major issue for the country, how has this benefited the metal detection & inspection industry?
Yes, after the implementation of Food Safety & Standards Act, the demand for the metal detection and product inspection systems had drastically increased.
The demand from various auditors and certification bodies has made the metal detection business rise. But simultaneously many international brands are putting up their activities in Indian market as the requirement is going to be huge in the future.
Is food safety now a key issue for the food processing industry in India compared to earlier times? Is the industry ready to spend more on this aspect?
Food safety has been definitely an issue with food manufacturers in past as well. But now a days, due to stringent Quality Control, CCP (Critical Control Point) regular checkings and process validation, the metal detection and inspection systems had become a vital role in the food manufacturing industries and our metal detectors had been tested and validated by many HACCP certification bodies at the customer places.
Choosing the best equipment with affordable price ration, had been a serious problem for the metal detection system buyers in India.
We hope in the coming times, the metal detection system shall be procured by looking at its technical specifications, manufacturer’s background, experiences and the list of customers already using the machines.
Are you into exports as well? If yes, to which countries?
We are major exporters of metal detectors from India and cater to more than 30 countries. Our products are exported to South America, Africa, the UAE and Far East countries like Vietnam, Singapore and Malaysia.
What kind of opportunity is foreseen in the future in the Indian market? Has the slowdown affected the growth of the market?
Yes, there was a slight slowdown in recent times, in the market growth in food industry. As we are catering to both food and pharma, it had not affected us, much in any ways.
Food processing and pharmaceutical business are very much on demand in Indian markets and producers are rapidly increasing their production strength to meet the demand. Hence the demand for processing and packaging machineries is also high.
Target Innovations has produced more than 1,000 machines since its inception in 2008. We export our machines to more than 30 countries. Because of the quality, performance and good after-sales services, we bag repeat orders from both local and overseas customers.
What kind of sales and turnover targets have you planned for the new fiscal?
As 30% of our total turnover is for exports, in coming years, we are looking forward to a good sales turnover and we are participating in many exhibitions worldwide like Interpack Germany; Interphex USA; Profood Srilanka; Indonesia and so on. We are also participating in many Indian exhibitions and are looking for a turnover increase of at least 40% of our total sales.
What kind of R&D are you working on right now? What new are you offering in the near future?
We have a dedicated R&D team which takes care of the technical and design upgrade of metal detection system to the latest in the industry and the demands.
We have recently developed metal detection system which can be suitable for inspection of metal contamination in metallised foils and aluminium packets. This products are now in much demand in Indian and foreign markets as mostly as per the food safety norms and standards, the metal detectors should be fixed at the maximum last stage of the process. Hence due to this machine, the customer can even scan the metal detector when it is being packed in the carton before dispatch thereby completely scanning the products after it is been packed.
Are any collaborations, joint ventures, new technology tie-ups happening in the near future?
Currently no, but we are constantly working on locally developing the X-ray technology for foreign object detection in packed products.
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