Food
Retail Sector
Bananas
for Babies
Horlicks
to get a boost
Amul
Ice-cream in Delhi
The
Gujarat Co-operative Milk Marketing Federation has launched its ice
cream in Delhi, in competition with Kwality Walls and Mother Dairy for
the country’s largest ice cream market, a newsreport said. Delhi currently
accounts for around 18 per cent of the country’s estimated Rs 525 crore
organised ice cream market of 80.8 million litres. It also boasts of
a per capita annual ice cream consumption of 1.45 litres, as against
the national average of 0.25 litres. The Delhi market is currently dominated
by Hindustan Lever Ltd’s Kwality Walls and Mother Dairy, which is a
brand of Amul’s sister co-operative concern, National Dairy Development
Board (NDDB). By keeping the prices of Amul at the same level as Mother
Dairy and lesser than those of Kwality Walls, the company hopes to increase
the market-share of the co-operative sector in the Delhi market. The
Delhi ice cream market is expanding by 20 per cent each year and Amul
has entered this market to cater to this expanding market. Amul will
source its entire ice cream requirement (including for Delhi) from its
Gandhinagar plant. The company claims to have sent 1,000-odd deep freezers
to Delhi under its ‘Hamara Apna Deep Freezer’ (HADF) scheme. Also, retailers
are being encouraged to buy their own deep freezers with Amul negotiating
a discounted price on their behalf with companies like Blue Star, Voltas
and Carrier.
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FOOD
RETAIL SECTOR
Modern
food retail sector in India is estimated to grow ten fold to Rs 110
billion by 2006, as per a research conducted by Rabobank International.
This is based on a conservative estimate that 9.2 million households
with an average monthly income of Rs 9,000 will spend at least Rs 1,000
per month through modern retail. Food purchase and consumption habits
the world over are changing rapidly. With overall food spending stagnating
in the developed countries, food retailing and food services are vying
for the increasing share of the customer’s spend in developing countries.
The key food retail players have been growing largely through acquisitions.
The study also indicated that Indian food buying habits are also gradually
changing in response to the changing social environment. Domestic help
is hard to find and as consumers shop increasingly for themselves, they
appreciate a pleasant shopping environment. Convenience of shopping
with a wide choice of products is fuelling shoppers’ aspirations. The
change in the social situation has led to the acceptance of modern formats,
especially in southern India. Several formats such as the supermarket,
neighbourhood discounter and hypermarket have been introduced in the
south. These include Food World, Subhiksha, Nilgiris, Margin Free, Big
Bazaar and Giant, the report states. While India offers a compelling
food opportunity, several factors restrict entry of foreign retailers.
At 53 per cent of personal income, food spending is India is one of
the highest in the world.
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BANANAS
FOR BABIES
The
Vegetable and Fruit Promotion Council Kerala (VFPCK), which has been
appointed a nodal agency by the Common Fund for Commodities, has come
out with a project proposal for manufacturing value-added banana-based
products, a newsreport said. A project for developing banana-based value
added baby food has already been sent to CFC’s evaluation committee.
After the approval of the evaluation committee, the proposal would go
to the Central Committee of CFC. The multi-national project, which involves
apart from India, Indonesia, Papua New Guinea, Bangladesh, Sri Lanka,
Uganda and Zimbabwe project is expected to begin by the year-end. The
Vegetable and Fruit Promotion Council, Kerala had been appointed by
CFC as a nodal agency to evaluate the technical and economic feasibility
of producing various value-added banana-based products including juices,
baby food, chips, vaccines for e-coli and hepatitis, as well as the
utilisation of banana stem for various uses. VFPCK had already developed
a technology for manufacturing nutritious baby food using the nendran
variety of banana. The production of banana-based products would also
enhance the potential for more nendran cultivation in Kerala.
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HORLICKS
TO GET A BOOST
The
Rs 950-crore Glaxo-Smithkline Consumer Healthcare Ltd (GSKCH) is lining
marketing initiatives to bolster the share of Horlicks in the health
food drink market. At present the company is in the process of identifying
products for the Indian market from the global portfolio of the parent
company, the UK-based GlaxoSmithkline plc.
The
company recently inaugurated the Rs 252-crore plant for the production
of health food drink Horlicks in Khwera village, in Sonepat district
of Haryana. The plant will have an installed capacity of 26,100 tons
of Horlicks, in addition to the overall existing capacity of 60,000
mt a year.
Horlicks is the major growth driver, accounting for over three-fourth
of the turnover of the consumer healthcare entity. Early this year,
Horlicks repositioned itself as a ‘resistant-builder’ food drink, to
address concerns of stress and pollution-stricken urban population.
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