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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

HorlicksThe 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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