Analyzing The Future of Food industry

By Dr. Ashok Kumar Tyagi- Haldiram Snacks Pvt Ltd , New Delhi

On the 2nd day of 2nd edition of World Mithai and Namkeen Convention 2019, in Brilliant Convention Centre, Indore on 9th – 10th January 2019, Dr. Ashok Kumar Tyagi-  Haldiram Snacks Pvt Ltd , New Delhi gave a very informative presentation of inside knowledge of food industry.

Holding very high regards for Pawan Kumar Agarwal, CEO, FSSAI, Dr.Tyagi appreciated remarkable tasks done by FSSAI within a span of last 3 years which has never been done before. Dr.Tyagi admiringly admitted that Pawan Kumar never allows doing anything wrong or any untoward approach that is illegal by anyone.

Being from Haldiram, Dr.Tyagi gave a lot of weight on the issue of used edible oil and its processing. According to health standard, Total Polar Compounds (TPC) of cooking oil when it reaches 25% should be discarded totally. The visual indication can be judged when the oil loses its original colour by turning dark yellow and emanates rancid odour. This used oil is no longer good for frying in fact it often leads to cardio vascular diseases, cancer, diabetes and other serious stomach related problems.

Sometimes this oil is purchased by soap manufacturers for make soaps and under-grade detergent products. Also it is purchased by small-time shopkeepers where it comes back into human consumption by lower strata. FSSAI is of the notion that there is no guaranty as to who purchases this oil. Often it is repacked and brought back into circulation system which jeopardizes the trust of consumers.

Taking used oil to the safer level, Bio-diesel is the best solution converting it into fuel. Used oil undergoes a refine procedure to make bio-fuel. In a productive discussion with FSSAI and Government of India, initially the price set to buy the used oil was Rs.20 per litre. But in later meetings with Bio-Diesel Association of India it was settled to Rs.40 per litre. This price is now controlled by Government of India and FSSAI. This reused oil would be purchased by the bio-diesel manufacturers for processing and collected from the selected collection centres.

With a better price settlement, a list of all the namkeen, snacks and sweets manufacturers should given to the bio-diesel manufacturers and BDAI to contact them at periodical intervals for collection of oil. This price and services will encourage the food industry manufacturers to give away the used oil willingly as they are getting better remuneration for it. With regular practice all the activities of selling-purchasing of oil will fall into place. Here lie greater responsibilities with manufacturers of food industry to give healthier products to the consumers and making the country to eat healthy.

Not siding any player in food industry, Dr.Tyagi said that disposal of oil should be done legally such that manufacturers should sell their oil to FSSAI authorities and other government appointed agencies only and by following this practice we create a healthy India.

Further to his presentation on the growth and future on the food industry, Dr.Tyagi gave a digital presentation on the contribution of the total FMCG sectors.

According to his analyses, 50% growth comes from food sector which shows the growth rate of 13.5 per cent, 39% from non-food sector increasing by 11 per cent , 6% comes from On The Counter (OTC) sales like eno etc…growing at 11.7 per cent per annum.

Studying the above data which is very authentic, a healthy growth of FMCG food sector with a great potential can be easily seen.

Speaking with reference to the zonal contribution of the country:

The North India contributes 35% to the food industry showing a growth rate of 16% which is the highest in India, The West zone’s output is 24% again which is increasing at 11% per annum, the South gives us 24% increasing at 15% and The East contributes 24% growing at 11% per annum.

India’s growth can mainly be judged by dividing it into urban and rural category also. 64% contribution of FMCG food sector comes from urban areas, 33% from metro cities and 15% from class I towns. From rural areas the contribution is 16-36% and it is here that the future growth of food industry comes from. To implement strategies tactfully in rural market the output will increment multi-folds along with the growth of rural areas.

The data clearly indicates the rural growth will be better than urban in near future so maximum focus should be aimed at rural market.

Speaking again about the contribution of the states made to FMCG sector:

13% comes from Maharashtra, 10% from Uttar Pradesh, 8% from Tamil Nadu, 7% from Andhra Pradesh, 6% from Gujarat, 5% from Delhi and 55 Rajasthan.

If we consider the food basket : Biscuit production is growing at 10.6% volume followed by salty snacks which is 20% (traditional & western snacks), edible oil at 13.7%, spices at 14%, non-refined oil at 16.3%, packed tea 11.6% and pure ghee at 18%.

A big question is how can we escalate the food industry considering hygiene, food safety and quality of the product?

As of today, the quality of a product has been changed both locally and globally. The manufacturers have to go beyond the expectations of the consumers i.e. they have to work on customer delight. To a customer, quality means where he pays for quality and cost of the product, delivery and service of the production and if the quality is excellent and the first copy is 80% above FSSAI norms it’s a win-win situation for the manufacturers and consumer at large. The mantra to win the customer and the market lies in the combination of the above ingredients of success.

Golden rule of the food preparation is:-

Following food safety management system in a precise way as assigned by the FSSAI, Haldiram is following all the GMP, GFP as well as HACPP.

Seven principles of HACPP are:-

Coming to hygiene part: hygiene of the factory, hygiene of the workers, machineries, location, establishment over and above them are the utensils used while preparation should be meted out with 100% cleanliness. Warehouse & waste management should be as per the laws and regulations. Last but not least pest control should not be forgotten. Waste management is an important service to the nation. Collection of wrappers and packets by the big players is a good gesture to keep cities clean. These packets and wrappers are useful in road construction and waste oil is recycled into bio-diesel and the work has been started in many places. Controlling pests and other rodents and eliminating them from the system pest control should be carried out at regular intervals. Pest control management holds a prime importance in food industry.

To discuss the last topic is marketing of the product. Marketing is the art of creating a market for the manufactured product; ascertain a value and delivering it to the consumer. It is R & D dept’s job to create a product as per the tastebuds of consumers. Factors like customer orientation, quality assurance, unique pricing according to the proportion of the product. Branding is another major step of product outlook enhancement to justify what the manufacturer is giving that others don’t.

Focus on promotion is also equally important. Whether doing it by digital marketing or daily commercials, working globally we have to incorporate the latest technology in sales and marketing. A daily sales feasibility report giving operational information should be maintained by shopkeepers, distributors and other sales agencies. All the activities pertaining to sales have to be reported on daily basis to show the successful working of food chain.

On the conclusion of his dialogue, Dr.Tyagi addressing the crowd with goodness of Haldiram said that Haldiram has more than 400 products and 9000 employees in both Delhi and Nagpur. Haldiram supplies its products to more than 80 countries. Haldiram products are the most preferred foods outside India. It has been a market leader with around 30% of contribution from traditional snacks and 20% from salty snacks. With 100% automation, Haldiram is the first company of its kind. 100 per cent automation means hands-free manufacturing which is a great achievement. Haldiram is the first Indian snacks manufacturing unit having latest innovation to pack street food with a very hygiene and controlled environment. His motto was “Eat Healthy and Live Healthy”.

 

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