IndiaNews. FOOD & FOOD INGREDIENT REVIEW June July 2006 CONTENTS

Transcription

1 FOOD & FOOD INGREDIENT REVIEW June July 2006 CONTENTS p.1 Editorial Food Industry Overview p.3 Economic growth to decelerate CII projects lower GDP growth of 8 per cent p.4 Situation not yet critical to threaten GDP projections India 4th most attractive investment destination India-Japan partnership p.5 Negative list, FDI may throw India-ASEAN FTA off track FTA stalemate derails plan for Malaysian pact Mega FTA with Mercosur, SA union on cards p.6 Nathula reopens for trade after 44 years China emerges as India's third biggest export destination p.7 India within striking distance of big bang trade pact with EU India Inc. disappointed by WTO Hanacobi plans Indian foray p.8 Indian food attracts foreign investors p.9 Big guns eye integrated terminal markets project Perishable exports from North-East get airfreight assistance ADAG to widen commodity trading reach p.10 Bharti plans big spend for agri-biz Avesthagen ties up with French seeds major Aquaculture p.11 EU emerges largest buyer of marine products p.12 India moves WTO to fight shrimp case Shrimp exporters offer cut to escape US dumping review p.13 US to call off duty review on 70 exporters Dairy, Meat & Poultry p.13 Fruits, nuts edge out plain vanilla p.14 Providing clean milk remains a challenge India to outpace global milk output growth p.15 Amul pushing ice creams Amul posts highest ever turnover Amul butter in a new pack p.16 Lassi becoming popular in TN Organic milk in Garden City Vadilal to set up new plant Himalya to get EU licence for cheese export p.17 Frozen bovine semen launched Milgram plans dairy valley p.18 Godrej launches ready-to-cook chicken ICAR develops bird flu vaccine Alcoholic Beverages p.18 Jim Beam's ready to cheer spirits here p.19 Molasses for cars only Whisky companies play by new rules p.20 UB group swallows French wine producer Mallya drops bid for Taittinger Mallya to invest in winery UB bids for Foster's beer units in India, Vietnam p.21 UB group sets up scotch unit in Scotland UB plans to toast wine market UB, RSG enter bilateral distribution pact p.22 UB brews a N-E beer story Value of UB Group's top brands p.23 UB to cut dependence on contract breweries Beer market grows 25per cent p.24 SABMiller looks to brew in TN SABMiller bottling pact with Kool Unilever's de Vaux joins SABMiller to head India unit p.25 Radico Khaitan forms JV with UK distillery Ayur plans alcohol-based drinks Champagne Indage to invest for seven wineries p.26 Singapore's APB to set up new brewery in India 'Sake' gaining popularity p.27 Maharashtra MoU with Italian winers Centre ready to withdraw CVD on imported wine p.28 Mohan Meakin chalks out strategy for IMFL biz Contents continued on next page IndiaNews is published every 2 months by: GIRACT 24 Pré Colomb, 1290 Versoix Geneva Switzerland Tel Fax info@giract.com

2 FOOD & FOOD INGREDIENT REVIEW June July 2006 CONTENTS (Continued) Non-alcoholic Beverages p.28 Mohan Meakin to expand food business p.29 Juice Zone to increase presence Cola goes well with PET Parent's keeping watch on Coke p.30 More trouble for Coca-Cola in Kerala Tea p.31 Tea exports decline Tea exports to Pakistan down India aims to triple tea exports to Pak May tea exports up 20 per cent p.32 Aussies to sip Indian tea Nilgiris tea estate for sale Hard days ahead for fake Darjeeling tea Darjeeling tea eyes local turf p.33 Starbucks looks for Indian tea Tata Tea plans Russia foray via joint venture Tata Tea in race to gulp Moroccan company Coffee p.34 Coffee output likely to hit four-year high Coffee crop to jump 10 per cent Sequoia invests in Café Coffee Day p.35 GI Cover for Monsooned Malabar Coffee exports drop in January-June p.36 Tata Coffee to buy US company Eight O'Clock coffee brand for Russia After Eight O'Clock, Tata Coffee times its US entry p.37 Tata Coffee tie up with Beeyu Fresh and Honest Café's plans Starbucks Coffee firms up India plans Food Service & Retailing p.37 Restaurant chain TGI Friday's plans expansion p.38 McDonald s plans south & east push Navis Capital acquires Nirula's p.39 Papa John sees growth in India VLCC opens health food chain Yo China chain in Punjab Kamat food joints at petrol pumps p.40 Reliance unveils retail initiative Fresh Plus from Reliance KFC to open nine outlets Reliance retail hub in Thailand p.41 Wal-Mart's India dream hits FDI wall Prozone to invest in malls Metro to spread wings in Bengal Food Service & Retailing (Contd.) p.42 Carrefour exploring India Marks & Spencer in Kolkata Shoppers' Stop plans F&B foray Inorbit Malls to invest Rs. 15 bio p.43 ITC has big plans for e-choupal Subhiksha expansion Snacks p.44 HLL puts Modern Food up for sale Venky's glucose biscuit nibbles at US markets p.45 Britannia gets a share of Daily Bread Britannia plans expansion Cookies India eyes overseas market p.46 Godrej buys Nutrine Cadbury seeks bigger bite of candy market p.47 Ceylon Biscuits drops Bakeman's bid SIL to venture into biscuits Cookie Man bakes its way to Gujarat p.48 Lotte to expand portfolio Culinary Items p.48 Horlicks for Junior Another Maggi variant from Nestle p.49 Wockhardt scoops up Dumex, adds Protinex, Farex to kitty p.50 Amul pizza goes rectangular Sugar p.50 Gearing for sugar glut next year Shree Renuka in pact with Brazil company p.51 Sugar import not a sweet idea Japan may import sugar and ethanol from India Centre removes duty on sugar imports Sugar skids as exports banned p.52 Sugar firms pact with oil cos for ethanol supply Ethanol programme likely to affect molasses availability p.53 Call to defer decision on ethanol-blended petrol p.54 Sugar foray by Reliance not ruled out RIL sweetening its sugar biz foray Pawar shoots down Reliance sugar factory plan p.55 Bajaj Hindusthan chief gainer from UP sugar policy Bajaj Hindusthan eyes Brazil Flavored sugar to hit market soon Contents continued on next page Vol GIRACT 2006

3 FOOD & FOOD INGREDIENT REVIEW June July 2006 CONTENTS (Continued) Oils p.56 Vanaspati imports from Sri Lanka through Nafed Notice to Sri Lanka on surge in vanaspati imports KS Oils to acquire two plants p.57 Bunge to make Dalda volume player Mustard oil in vanaspati Castor oil players pray for lower crop p.58 Castor exports set to surge as China, Brazil face poor crops Sesame seed exporters bag Korea order p.59 Malaysian firm eyes palm oil plantations in India Race on for Malaysian arm of Aditya Birla Group p.60 GM soya oil imports exempted from GEAC nod Changing base import price of edible oils p.61 Reliance plans to offer cooking oil Petfood p.61 Dog food firms bark up the right tree Food Additives p.62 Mentha futures on the boil Demand to make natural vanilla mandatory p.63 Indian salt beaten in China, Japan Tata Chemicals to acquire domestic salt companies Tapioca starch price surges on supply crunch Spices & Flavors p.64 Spices exports touch all-time high Commerce ministry bails chilly traders out of scam p.65 Dispute may hit cumin exports STCL setting up two processing plants p.66 Pepper exports gain steam, with US orders Pepper prices may top Rs. 100/kg Centre asks Sri Lanka to curb free flow of pepper p.67 Domestic Prices Of Major Spices Foodgrains p.68 Import of wheat from AWB, Agrico Wheat import norms at Codex level India to import wheat from Canada p.69 Farmer groups wary of imported wheat quality Wheat import duty cut opens up the field for global players Customs duty on wheat imports at 5 per cent Nafed import of pulses p.70 Pulses import at nil duty Grain output estimate lowered Foodgrains (Continued) p.71 ITC ties up for DNA-tested basmati India adopts Super as basmati rice p.72 Basmati export to cross 1 mio tons EU tightens basmati import norms Fruits & Vegetables p.72 Mango processors in a soup over high prices p.73 Japan to import mangoes Merino to enter RTE segment PepsiCo set to start citrus cultivation in Punjab p.74 New variety of potato finds few takers Low crop of Himachal apples Onion exports zoom Biotech p.75 Govt seeks clarifications over seeds of Bt brinjal p.76 Call to shelve move on Bt brinjal Farmers oppose Bt brinjal p.77 GM brinjal not harmful to environment, says Monsanto Indian biotech sector revenues surge 37 per cent Uttaranchal will not allow GM crops, says CM Labeling of GM products delayed p.78 Event-based approval for GM crops Major Food Companies p.79 HLL divests stake in Quest Intl HLL to make Mumbai the sole power center Unilever's R&D team to dish out new mix for mass market p.80 Dabur Foods aims Rs 5 bio topline ITC to invest Rs. 150 bio Dabur eyes abroad for acquisitions to boost up growth Promoters of Dabur pick up stake in Vishal Mega Mart p.81 Godrej eyeing acquisitions in China Related Publications p.28 IndiaNews p.29 Japanscan Vol GIRACT 2006

4 Food & Food Ingredients Review Editorial As Europe celebrates vacation time, it is time in India for another round of floods and disruptions. In the first half of July, Mumbai experienced bomb blasts in crowded trains that killed hundreds. It took less than 24 hours for the city to get back on its feet and forget the tragedy. We salute the spirit of the city, which did not allow the terrorists to intimidate it. Now, residents of Mumbai are struggling with another tragedy flooded streets and disrupted traffic. The monsoon started early this year, but slowed down soon after. This led to everyone from farmers to corporate houses getting worried. Fortunately, it has gathered momentum once again and, at the time of writing this, large parts of Western India are struggling with flash floods and TV news channels are showing pictures of people wading through flooded streets in one city or another. People across the country are blaming town planners and municipal corporations for poor management of rainwater drainage systems. It is not just the man on the street who is complaining about poor infrastructure. Economists are also complaining about the slow pace of infrastructure spending in India. They believe that this, combined with high crude oil prices, will lead to a slowing down in India s growth. Almost everyone seems to think that India will not be able to achieve 8-10 per cent growth that its leaders talk about. Having said that, no two economists can agree on what the future rate of growth will be. Estimates range from 5.9 per cent to 8 per cent. Lower projections of growth do not seem to deter foreign investors, particularly Private Equity, players, from picking up stakes in Indian food companies. Navis, Indivision, Rabo Bank just to name a few are investing in all sectors of food across India. Simultaneously, Indian food companies have continued to aggressively look for acquisitions at home and abroad. UB Group came close to acquiring world's sixth largest champagne company, Taittinger, but pulled back after French could not digest the idea of Indians owning a champagne company. UB has finally settled with Saumur-based Bouvet-Ladubay, a major French wine producer. UB has also set up a facility in Scotland for making bulk scotch whisky. Closer at home, UB is bidding for Foster s business in India and Vietnam. (Continued on next page) Vol GIRACT

5 Food & Food Ingredients Review Editorial UB Group s acquisition spree is matched well by other large Indian business houses. Tata Coffee has acquired Eight O'Clock Coffee (EOC) Company of the US. Godrej has acquired Nutrine. Bajaj Hindusthan has initiated the process for acquiring a sugar factory in Brazil. Indian sugar companies have never had it so good. Production is rising, but prices have remained steadily high on the back of the global shortage of sugar. High crude oil prices have forced the government to press for increased use of ethanol as a fuel. Five per cent blending with gasoline is being implemented across the country. This has prompted one of India s biggest business houses, Reliance, to consider setting up ethanol production units, which convert the complete sugarcane juice into ethanol, instead of using only molasses for this purpose. At the same time, there are reports about the government considering a ban on the use of molasses for producing potable alcohol. In other words, the government may reserve molasses for fuel applications only and ask liquor manufacturers to use grains. Another segment which is witnessing action due to the entry of giant Reliance is retail. Reliance is creating not just a chain of megastores, but it is also putting in place a massive infrastructure to feed the huge chain. The giant seems to be entering almost every sector of FMCG, creating its own brands rather than relying on established brands in the field. News about Reliance s interest in cooking oil, dairy, agri-commodities has already come in. This is bound to raise the eyebrows of many Indian food companies. Let us keep watching! Interesting to look also at the opposition that GM eggplant (Bt Brinjal) seems to be facing in India. This is the first GM crop being introduced in the country. Predictably, activists have risen up against the move. Brinjal or eggplant is a common vegetable in India. However, it cannot be processed or stored. Increased production of Brinjal will only lower its prices and will not open up any new markets. Moreover, in a country like India, where vegetables are always sold loose without any packing, one wonders how labeling concerns can be met. The country has still to decide its policy on labeling of GM foods. Almost the entire quantity of soya oil that India imports is GM soya oil. But, there is no such declaration on the packs. As India integrates with the rest of the world, the country will have to face up with such contentious issues that dominate the debate in developed countries. Before concluding, let us wish well to the new emerging bonhomie between India and China. The two countries recently opened a third road transit point. China has become India s third biggest export partner after the US and the UAE compared to being the 15th in We are particularly thrilled by these developments since we have a finger in both pies in India with IndiaNews and in China with ChinaNews. Vol GIRACT

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