20-12-2012, 01:10 PM
INDIAN SNACKS INDUSTRY
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NATURE OF THE FOOD INDUSTRY
It’s hard to know what you’re eating these days. No matter if you read labels or not, do you really know what’s in your food? A lot of people take comfort in the words “All Natural”, but should they?
So what does it mean when food is labeled “natural”? According to the FDA “from a food science perspective, it is difficult to define a food product that is ‘natural’ because the food has probably been processed and is no longer the product of the earth. That said, [the] FDA has not developed a definition for use of the term natural or its derivatives. However, the agency has not objected to the use of the term if the food does not contain added color, artificial flavors, or synthetic substances.”
Food companies are some of the savviest trend spotters around. They literally spend Hundreds of MILLIONS of dollars tracking and following trends. In fact, in some cases, they even help create the trends. Why? It’s all in hopes of selling more and more food. But when simple foods and short ingredient lists became the latest trend, did Big Food run scared? No—they did just the opposite. Like a chameleon, they quickly adapted and turned the trend to their advantage.
Does that mean our food is really simpler? In some cases, yes. But more often than not, Big Food has merely hijacked this trend and lean washed the truth so it can sell more food. Don’t believe me? Let’s take a look at a real life example to see Big Food hard at work.
With the ease and convenience of spread ability, three natural ingredients, and a tagline like “where simple goodness begins,” Land O’ Lakes spreadable butter sounds downright perfect, right? The sad truth is that while simple and natural ingredients can give the appearance of purity and goodness, you have to look deeper.
INDIAN SNACKS INDUSTRY
Snacks are a part of Consumer Convenience/ Packaged Foods segment. Snack is described as a Small quantity of food eaten between meals or in place of a meal. Snack food generally comprises bakery products, ready-to-eat mixes, chips, namkeen and other light processed foods According to the ministry of food processing, the snack food industry is worth Rs100 billion in value and over 4, 00,000 tones in terms of volume. Though very large and diverse, the snacks industry is dominated by the unorganized sector According to an Apeda survey almost 1,000 snack items and 300 types of savories are sold across India.
The branded snacks are sold at least 25% higher than the unbranded products Savory snacks have been a part of Indian food habit, since almost ages. Though there is no particular time for snacks, normally they are consumed at teatime. The variety is almost mind-boggling with specialties from all regions, which have gained national acceptance industry. while the branded segment is growing around 25% per annum to stand at Rs 5,000-Rs 5,500 crores, due to various reasons like Multiplex culture, snacking at home while watching TV, pub sand bars (where they are served free). AC Nielsen's retail audit shows that the large sales volumes are due to a marked preference for ethnic foods, regional bias towards indigenous snacks and good value-for-money perception. Of course the branded segments much smaller at Rs 2,200 crores, which is what makes it so attractive to food Companies that are looking at bigger shares and in the branded snacks market, to get down to basics, Frito Lay commands a share of 45%, followed by Haldiram’s at 27% and ITC at 16%.
NESTLE
Nestle has its presence in India for around nine decades, making it one of the oldest company in India. Nestlé India is a subsidiary of Nestlé SA of Switzerland.
The company has its headquarters at Gurgaon near Delhi and has seven factories spread all over India. It started its journey in India in 1912 by entering into the dairy business.
Nestlé India, one the biggest players in FMCG segment, has a presence in milk & nutrition, beverages, prepared dishes & cooking aids & chocolate & confectionery segments.
Nestle has created brands like Nestlé Milkmaid, Nestlé Every day, Maggi Noodles, Maggi Soups, Polo, Kit Kat, Nescafe & many more.
As per the market-wise position Nestlé India stands first in instant noodles & ketchups, second in healthy soups, No.1 in instant coffee, & No.2 in overall chocolate category.
Nestle India continuously focuses on understanding changing lifestyles in India. This helps it to foresee needs in product offerings. The company innovates new product & renovates existing one providing high quality, safe food products at affordable prices.
BRITANNIA
Britannia, one of the India’s biggest brands of the country, has a market share of 33%. A more-than-a-century old Britannia has launched big brands in FMCG Segment.
The company is expanding its customer base by launching new products and renovating existing ones. Britannia s brands now have greater availability in rural markets and pervasive presence in modern trade.
It launched various brands in biscuits, bread, cake & rusk business. It has launched brands like Tiger, Britannia 50:50, Good Day, Britannia Treat, Marie & many more.
KWALITY DAIRY
Kwality Dairy (India) (KDIL) India’s premier dairy foods company, focuses on building leadership positions in branded and added value markets across the dairy sector. KDIL specializes in the storage of milk and related products.
KDIL is ideally situated in the city of Faridabad, in the state of Haryana in Northern India. With a distance of around an hour’s drive from Delhi, KDIL operates from six and half acres of complex. Located in a milk rich belt of India, the company follows a well-formulated and comprehensive strategy for the procurement of milk on a daily basis.
It has the most ultra modern State of the Art Dairy Machinery and has incorporated the latest technology to provide its customers the best in India and abroad .To ensure the best quality KDIL has procured dairy design and key equipment from Alfa Laval India Ltd (Tetra Pack Group) with design back up from APV An hydro Pasilac AS Denmark.
The plant has a capacity of processing 4, 50,000 liters of milk per day and with its ongoing expansion programmed is soon going to be increased by another 4,00,000 liters per day. The plant has a ghee capacity of 1000 Mt per month. The people at KDIL are clearly focused on quality, efficiency and continual improvement. Each function has been designed with
our customers' interests in mind. By improving our own processes, services and products we transfer advantages to the people who use our products.
It has supplied its goods and won appreciation from renowned companies like Nestle India Ltd, Hindustan Lever and Mother Dairy, Vadilal Industries Ltd and Smith Kline Beecham to name a few. The company also exports its products to various countries. With quality, integrity and technology being the hallmark of its growth the company is today perfectly poised to face all challenges and obstacles and strive for greater success in the years to come.Their business philosophy is simple: Serve the needs of the customer by providing them Kwality products
PARLE AGRO
Hatsun Agro Product Limited operates in the dairy sector in India. It produces and sells milk, milk products, ice creams, beverages, and dairy ingredients. The company offers milk under Arokya, Hatsun Santosa, and Hatsun Komatha brands. Its milk products include cooking butter, cow ghee, butter milk, curd, and paneer, which it offers under Hatsun brand name. The company also provides various flavors of ice creams under Arun brand name. Hatsun Agros beverage products include milk, badam milk, tea.
HERITAGE FOODS
The Heritage Group, founded in 1992 by Nara Chandra Babu Naidu, is one of the fastest growing Private Sector Enterprises in India, with three-business divisions viz., Dairy, Retail and Agri under its flagship company Heritage Foods (India) Limited (HFIL), one infrastructure subsidiary - Heritage Infra Developers Limited and other associate companies viz., Heritage Finlease Limited, Heritage International Limited and Heritage Agro Merine Private Limited. The annual turnover of Heritage Foods crossed Rs 347 crore in 2006-07.
Presently, Heritage’s milk products have market presence in Andhra Pradesh, Karnataka, Kerala, Tamil Nadu and Maharashtra and its retail stores across Bangalore, Chennai and Hyderabad. Integrated agri operations are in Chittoor and Medak Districts and these are backbone to retail operations.
In the year 1994, HFIL floated a public issue to raise resources, which was oversubscribed 54 times and its shares are listed under B1 Category on BSE and NSE. Heritage Foods has its headquarters in Hyderabad, Andhra Pradesh, India.
KOHINOOR FOODS
Kohinoor Foods is engaged in manufacturing basmati rice, ready-to-eat products, cook-in sauces, cooking pastes, spices, seasonings and frozen foods.
Incorporated in 1989, currently the Rs 650 crore Delhi-based company has a distribution presence of more than 2 lakh retail outlets, 100 super distributors and 600 stockists.
Kohinoor Foods has many firsts to its credits such as being the first company to introduce one and five kg packs in the rice category; to advertise rice in the Indian market and automated packaging machines and color Z series Sortex machines to the country.
The company has received certificate from Guinness Book of World Records for making World's Largest Biryani.
The company has its presence in major retail chains like Wal-Mart, Reliance, Big Bazaar, Spencer's, Shubhiksha, Hyper city, More, ASDA in the UK, Costco in Canada, Coles & Woolworths in Australia, Whole Foods in the US and many more.
PARLE G
Parle-G or Parle Glucose biscuits, manufactured by Parle Products Pvt Ltd, are one of the most popular biscuits in India. Parle-G is one of the oldest brand names as well as the largest selling brand of biscuits in India. For decades, the product was instantly recognized by its iconic white and yellow wax paper wrapper with the depiction of a young girl on the front. Counterfeit companies have attempted to recreate and sell lower quality products of similar names with virtually identical package design. The company's slogan G means Genius . The name, "Parle-G", is derived from the name of these urban rail station, Vile Parle which in turn is based on village Parle in olden days (there is also area called Irle nearby where the Parle Agro production factory is based).This popular biscuit is primarily eaten as a tea-time snack. Parle-G is the largest selling biscuit in the world. It has a 70% market share in India in the glucose biscuit category followed by Britannia, Tiger (17-18%) and ITC's Sunfeast (8-9%). The brand is estimated to be worth over Rs 2,000 crore (Rs 20 billion), and contributes more than 50 per cent of the company's turnover (Parle Products is an unlisted company and its executives are not comfortable disclosing exact numbers). Last fiscal, Parle had sales of Rs 3,500 crore (Rs 35 billion). It also is popular across the world and is starting to sell in Western Europe.
PRODUCTS RANGE OF THE COMPANY INCLUDES:
Full Cream milk, Toned Milk ,Double Toned Milk, Cow Milk, UHT Milk (Tetra pack),Cow Ghee, Buffalo Ghee ,Cooking Butter, Fresh Cream, Skim Milk Powder,Curd (Cup & Pouch), Flavoured Milk in Bottles & Tetra packs, Butter Milk, Lassi,Paneer, Doodhpeda, Ice Cream, Bread Cookies.