National
Tax
holiday leads to new processing plants
Keeping
in view the tax holiday announced in this year’s budget for the
food industry, Pepsi Foods has decided on setting up Frito Lay and Tropicana
factories at New Delhi.
Other big players like Dabur Foods and Rasna are also planning to make
the most of this tax holiday. In fact, Dabur Foods is already in the
process of setting up its new plant near Siliguri.
This tax relief is being seen as an opportunity for building up the
scale of businesses.
According to the tax holiday defined under section 80-IB of the Income
Tax Act, 100 per cent tax deduction is being offered for the next five
years and another 25 per cent deduction in the subsequent five years
to undertakings involved in the processing, preservation and packaging
of fruits and vegetables. The new provision will come into effect from
April 1, 2005 and will apply in relation to assessment year 2006-07.
The deduction will be available from the assessment year relevant to
the previous year in which the undertaking starts such business.
Mother Dairy expands
capacity at Gandhinagar
The
Gujarat Cooperative Milk Marketing Federation (GCMMF) is setting up
a powder plant with the capacity 100 tonnes per day. The plant with
a budget of Rs 58 crore will be set up alongside their existing Mother
Dairy plant in Gandhinagar.
GCMMF had purchased 25 acres of land adjoining its existing Mother Dairy
plant at a cost of Rs 3 crore. The plant will cater entirely to Amul’s
foray into the white and brown beverages segment under the Shakti label.
The sales of the brand are soon slated to touch 1,000 tonnes per month.
The Rs 200-crore Mother Dairy plant, set up in 1994 with a milk processing
capacity of 10 lakh litres per day (lpd), had grown to 18 lpd last year.
With an additional capacity of 10 lakh lpd, which is set to be ready
by the end of 2005, the plant would become the largest milk powder production
plant in Asia.
Cargill and Parakh Foods join hands
The Indian arm of the US agri-business giant Cargill
India has signed a memorandum of understanding with Parakh Foods in
a move to expand its edible oil business in the country. Parakh Foods,
owners of Gemini, is one of the fastest growing edible oil brands in
India.
A joint venture company is expected to be floated soon, with Cargill
and Parakh Foods sharing an equal stake. Once finalised, the joint venture
company will be the largest in the country’s edible oil business
with around 5,000 tonnes of refining capacity per day.
The Pune based Parakh Foods has two large refineries with an aggregate
refining capacity of 2,500 tonnes a day, including one at Kurkumbh in
Maharashtra. Cargill India’s portfolio includes various foods like
grains and edible oils. The company has established a refinery in Paradeep,
Orissa, which is yet to start commercially.
India already has a couple of successful joint ventures in the edible
oil sector including the Mundhra-based Adani- Wilmar combine. The highly
fragmented edible oil refining industry has in the last three years
witnessed an explosion of new refining capacities (units with 1,000
tonnes a day and above), mostly concentrated near port towns such as
Kakinada and Kandla. All these units are almost entirely dependent on
crude oil imports.
Givaudan aims at further augmenting profits
Givaudan, the Swiss flavour and fragrance major,
has reported a five-fold growth in its business in China and a two-fold
growth in India. The company intends tapping the potential in India
and augmenting growth to be in step with the business in China. Givaudan’s
operations in India have grown at an annual rate of 20 per cent since
its inception in 1994. In spite of this, its $10 million flavours and
fragrance plant in Jigani, on the outskirts of Bangalore, is still underutilised.
The Swiss firm imports about $20 million worth of raw materials and
IT services annually for its global operations from its Indian subsidiary.
Kelloggs launches cereals with innovative shapes
Kelloggs
India plans to launch a limited edition pack of cereals shaped like
a spider's web. This is being done to coincide with the promotion of
the American movie Spider-Man 2, which the company is sponsoring globally.
Kelloggs is bringing out theme-based food for the first time with the
launch of Kelloggs Chocos Spider-Man 2 Cereal, which will be enriched
with calcium.
The packs will be available in the market for only a few weeks.
“Kelloggs Chocos is built on the core equity of fun and adventure.
Our aim is to bring the Spider-Man adventure through Chocos to kids
across India. With a unique web-shaped Kelloggs Chocos, special toy-box
packaging and fun-filled giveaways, kids can experience the excitement
of being like the Spider-Man,” says K Venkatachalam, MD, Kelloggs
India.
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