FNB News - India Foodex to spur new growth opportunities for food processing units

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India Foodex to spur new growth opportunities for food processing units

Monday, 25 July, 2016, 08 : 00 AM [IST]

Nandita Vijay, Bengaluru

The annual India Foodex conjures up a positive environment for the Indian food processing sector especially those in Karnataka. The agri and food processing is considered to be a sunrise sector because of its large potential for growth and socio economic impact. This is where food entrepreneurs need to capitalize on the existing strengths of the country’s agrarian economy. The agro climatic zones, adoption of advanced technology to increase horticulture produce , qualified human resource are all favourbale to invest in food processing units across the country. Events like the 8th India Foodex 2016 which is an annual exposition will enable food entrepreneurs to bolster growth prospects.

The 3 day event which is being held in Bengaluru from August 26 to 28 at the Bangalore International Exhibition Centre (BIEC) on Tumkur Road in Bengaluru will provide a whiff of fresh air as large, medium and small companies will showcase their expertise in processed foods along with startups food enterprises that are also hoping to garner a fair share of opportunities.

The event which is an international exhibition on food processing, packaging machinery and allied industry is organized by Media Today Group is supported by the National Centre for Cold Chain Development, All India Food Processors Association, Food Processing and Packaging Machinery Association of India, Coffee Board and Spices Board will also have international focus with countries like Italy and Germany displaying their know-how in terms of automation and convenience.

According to the organizers, India is the world's second largest producer of food next to China but accounts for less than 1.5% of international food trade. The Indian food sector is ready for a rapid growth and has potential to become reliable outsourcing partner given its strength in primary food processing. Indian food brands are now rapidly increasingly finding prime shelf space in the retail chains across US and Europe. These include Mother’s Recipe by the Desai Group, MTR, ITC Foods and Maiyas to name a few.

A display of prowess in processing
Among the notable areas waiting to be tapped are canning, packaging, refrigeration for dairy, poultry, fisheries, meat, ready to eat products, cereals and grains, soft drinks consumer product groups like confectionery, chocolates, coco products, soya-based products, mineral water, high protein foods and nutraceuticals, apart from health food and health food supplements, a rapidly rising segment of the food processing industry.

“Foodex is an important event which helps us to showcase new products and stock keeping units ( SKUs). About our participation we need to know the cost, location, target audience and time date etc .If we participate we would like to showcase our range of snacks, beverages , bhel bar, rasam Xpress , ready-to-eat range etc , Rakesh Somayya, Associate Vice President international business and key accounts, Maiyas Beverages & Foods told F&B News.

In the case of MTR it has decided to not participate in the Foodex event. Similarly ITC Foods too is not likely to be present.

Considerable government focus
Union government has taken a leap to support the food industry. The country which is bestowed with multiple agro climatic zones that sustain a variety of horticulture produce of fruits vegetables, besides its capability in milk production, dairy processing, grain and meat produce is now looking to garner its next phase of growth. This is where the central government has permitted 100 percent Foreign Direct Investment in multi-brand retails.

“In the wake of the cent percent foreign direct investment, the need of the hour for the small food entrepreneur is to make his presence felt in the value chain, There is need to take advantage of these opportunities given by the government to ensure that they are part of the expanding market dynamics and not lost out with global entrants with the FDI coming in, JP Meena, additional secretary, Ministry for Food Processing, said during his recent visit to Bengaluru.

“Now FDI is expected to spur the front end operations with supply chain inputs. In the food retail sector The government is ensuring that 40 percent of the products could be sourced locally and this was an opportunity for our large, medium and small players to provide the required value-addition. For instance, in a bakery sector, wheat for these products are imported from Canada and Australia which should be stopped . The wheat growers should cultivate the imported versions and maximize their produce with the Indian bakery sector’s demand for the same. The Ministry’s future efforts are also to strengthen the forward and backward linkages so that farmers and small industries can optimize their revenue generation,” stated MoFP additional secretary Meena.

According to the Foodex organizers, that the government has also approved proposals for joint ventures, foreign collaboration, industrial licenses and 100% EOUs envisaging an investment of Rs. 19,100 crores (US$ 4.80 billion) during the same period. Out of this, foreign investment is over Rs. 9100 crores (US$ 2.2 billion).

Global established brands in food segment are readily available in India markets like American Garden, Unilever food products from USA, Agnesi Pasta from Italy, Dana regular & sugar free jam & butter cookies from Denmark, Kikkoman sauces from Japan, Olicoop Spanish Olives, Italian olive Oil, Ong's oriental food & sauces from Singapore/China, Beverages from UK, Chocolates & confectionery from Germany, Butter Toffees from Argentina, Salad dressings, Mayonnaise & Mustered Oil from Holland, Canned seafood & vegetables from Australia, sparkling grape juice from France, baby accessories from Taiwan, variety of mushrooms, Mexican food, Turkish delights, corn and Thai products and soon, list is endless.

Notable developments on the horizon :
Indian food processing sector needs cold chain units and common facilities to spur the manufacturing of value- added products , said Sagar Kurade, president, All India Food Processors Association and managing director, Suman Projects Consultants P. Ltd.

Indian culture nurtured the creation of specific food types that are unique to each region in the country. This is based on the soil conditions enabling cultivation of specific food crops which led to the preparation of exclusive regional recipes. There are some tastes that are ingrained in us and these are the true tastes of our tradition which are the flavors we all crave for. At Maiyas, these timeless recipes are created with ingredients that are sourced from the best. Our goal is to recreate the authentic traditional food, which is tasty, healthy using modern technology, said Dr. Sadananda Maiya, chairman, Maiyas Beverages and Foods .

The Ministry of Agriculture is aiming to double the production of all food crops through National Food Security Mission, NHM, HMNEHS & NHB and disseminating latest and modern practices of production and post harvest care. On the export front, APEDA is targeting agricultural and processed food exports in the range of Rs.4,000-5,000 crore (US$ 15 billion) in coming years, said the Foodex organizers.

The need of the hour in India is increased productivity of grains and building of an effective supply chain to ensure that what is produced in the farm reaches the consumer in good shape. Greater use of machinery have, therefore, become necessary in India, where plenty of produce is available for value addition and food processing, but have technical constraints in enhancing production and productivity because of inadequate exposure to high technology & inputs, coupled with advanced production practices, preservation, logistics and marketing. As a result, India is emerging as one of the hottest destinations not only for Food Processing and Packaging Machinery & Equipment imports from European and South East Asian Countries but also for Agro-Food products from international suppliers. In order to introduce latest technological innovations, this event is proved to be an ideal platform to launch your exclusive range of products and services among thousands of Food processors, Machinery suppliers, importers and exporters to throng this expo, said the organizers.

"India Foodex 2015" which, besides India, attracted participation from 30 countries and was an excellent expo and received tremendous support from all quarters. Encouraged by overwhelming response, we are organizing 8th Edition of 'India Foodex 2016' during 26-27-28 August 2016 at BIEC, Bangalore, India. By adding more values to it, concurrently, we are also organizing 7th edition of 'GrainTech India 2016', 6th edition of 'DairyTech India 2016', and 3rd edition of 'MeatTech Asia 2016' a new vertical concurrently to ensure better business for all, stated the organizers.

According to the organizers, the 3-day event will be beneficial to those in food processing machinery & equipments, food packaging machinery, material & equipments, Fresh, Processed and Beverage (Non Alcoholic) Food Products like Rice, (Basmati & Non Basmati), Spices, Pulses, Cereals, Grains, Namkeen, Corn, Flacks, Chips, Tea, Coffee, Ready to Eat Products, Noodles, Pasta, Wheat, Flour, Vermicelli, Maida, Sooji, Wafers, Corn, Pickles, Jams, Biscuits,Confectionary, Food Drinks, Ice Cream & other Dairy Products, Live Stock, Products, Bakery Products, Coco Products, Honey etc., Food Product Stockist/ Distributors/ Traders, Hotel & Kitchen Equipments, Grain Milling Technology, Dairy, Bakery Product & Technology, Agriculture & Technology, Poultry Equipments, Sea Food Products & Technology, Food Retailing Supplies, Bar code / Ink Coding Technology, Banks/ Agri Finance Companies, Quality Certification Agencies, Organic Food Products, Food Testing Lab & Equipments, Food Sector Infrastructure, Post Harvest Technology, Pack Houses/ Warehousing, Packaging Technology & Services, Grading & Sorting Machinery, Wrapping, Sealing & Lamination, Equipment, Elevator / Conveyors / Rotary Separators, Cold Chain Equipment for Perishable Produces, Cold room & Refrigeration Appliances, Perishable and food Cargo Handling, Refrigerated Van & Trucks / Body Builders, Pack House/ Warehousing / Surveyors, Digital Temperature Controller & Data Logger, Herbal foods products, Marketing & Export Services, Marine Products & Aquaculture, R & D Organisation, Post Harvest Technology and Researchers / Students, Professional consultants, Agricultural products traders / Wholesaler, Magazines/ Papers/ Books/ Directories/ CD etc. Restaurant & Hotel Owner/Sales Managers, Student & Scientists/Universities/Research, Institutions, Corporate Houses/ Food Malls Owners, National & International Retail Chain Owners/Managers, Fast Food Chain Owners/Sales Managers, Agri & Food Marketing Board/Chambers/Agriculture, Departments, Food Factory Owners/ Sales Managers, Grocery Shop Owners, International Delegates, Consulates & Diplomats and trade visitors.