Manufacturers are optimising their operations to improve efficiency and product safety.
BY TEAM MT
The increasing competition and demand from the market for newer products is driving players in the food and beverage (F&B) processing industry to come up with products with shorter life cycles. However, the fundamentals are basically unchanged – a need for healthy, safe product that meet the needs of consumers who are busy and increasingly short of time to prepare elaborate meals every day. New products are mainly variants satisfying these basic needs. To achieve this, food processors have to be flexible in their production processes and ensure safety in all that they produce as well as ensure their products are healthy. “The recent major problems highlighted in India are in a progressive direction for food safety and societal health. The standards have to be complied with as per local and international market requirements,” opined Viju Parameshwar, president & CEO, Kluber Lubrication India.
Seconding, A Tejani, MD, Gits Food Products commented, “The ongoing controversy about noodles illustrates the fundamental problem facing the food industry in India. First of all the fruits, vegetables etc. grown here are table and not processing varieties. Secondly, pollution of water sources like rivers, lakes, ponds and other water bodies with industrial effluents and indiscriminate use of pesticides lead to various contaminants entering the food chain. A holistic approach to encourage Good Agricultural Practices (GAP) and simultaneously Good Manufacturing Practices (GMP) supported by good logistics, cold chain and primary processing is required on a sustained basis to effect a genuine and lasting transformation.”
There is a need for standardisation of processes to minimise the turnaround time. Manufacturers should work closely with customers; understand their processes and challenges and thus help meet their demands. “We have increasingly seen that the F&B processing industry in India is catering to global requirements and standards. Earlier this industry catered to the domestic demand; however, now it has to meet local quality demands and is exporting to other countries as well. We at Alfa Laval have introduced Aseptic processing and packaging systems to handle such bulk exports where the producers can process fruit concentrates which can be stored without refrigeration for a period of six months, something similar to “Tetrapak” in one litre and smaller packages,” averred Lars Dithmer, MD, Alfa Laval.
To help manufacturers maintain standards, Klüber Lubrication develops lubricants that are specifically food grade and safe to use in food processing. They also have products that are halal and kosher certified for those plants that need these. “We are able to support the processors to achieve the flexibility and quick change of processes for new products, while remaining fully safe,” asserted Parameshwar.
In order to deliver measurable improvements in product safety, operational efficiency, plant sustainability users should optimise every aspect of their operation. Mukund Deshpande, head- key accounts management, Forbes Marshall suggests users to first optimise the design and then develop the right operating practices. “The diagnostic tools with gap analysis capabilities help users to correct the operating practices on an ongoing basis and ensure measurable improvements in efficiency, sustainability and safety.”
Mukund Vasudevan, vice-president and GM, India, Nalco averred that one should measure every aspect of the manufacturing step. “Choose the right equipment though it could mean a higher initial capex and look at right balance of commodity and specialty products to gain the most.”
Over 90% of food processing industries in India are tiny to small scale, established with minimum capital investment. As such, only basic machinery required for manufacturing the products is installed to start with. Depending on the success of the enterprise and vision of the entrepreneur it is possible that more modern and hi-tech automatic machines are brought in. Seconding, Tejani stated, “It must be remembered however, that such machinery generally has to be imported. The high cost, adverse exchange rate and customs duty are a big deterrent to import. The
Export Promotion Capital Goods Scheme, under which customs duty is exempted, is not helpful to small industries. Export obligations imposed on the industries are difficult to fulfill. The scheme needs to be revised in consultation with small industries.”
On asking Arabind Das, chief operating officer, Godrej Tyson Foods on whether technology intensive machinery in used in their factory, he mentioned, “At Godrej Tyson, our operations are vertically integrated and value added raw fresh chilled chicken as well as ready-to-cook products are processed through state-of-the-art processing plant with mechanical slaughter facility. However, food processing is an investment intensive business and hence the government should offer incentives to bring in technology for farms, food processing and cold chain logistics and storage infrastructure. A bigger aspect of cold chain is product safety and hence monitoring cold chain failure becomes essential. There are several technologies available in the world but they are not cost effective unless some interventions are created at the policy level.”
Chilling and freezing is best form of food preservation. It keeps the nutritional value intact to a large extent. However, a major challenge faced by the industry is distribution network and cold chain infrastructure. Government programmes and subsidies have tried many a times in different ways over decades to improve the investment in cold storages. Significant capacity has been created where the rest of the ecosystem is in place; for example, for the storage of onions and potatoes. There has been little impact on storage of fruit and other vegetables because other post harvesting systems are not in place. Further, large retailers sourcing directly from producers have been unprofitable so far and hence are not growing adequately and also not investing in anything
including cold stores.
“FDI in retail has not been allowed yet which could be another contributor. An emerging trend is however of online retail which has grown substantially in the last couple of years. These players are increasingly looking at warehousing and storage of perishable items. Therefore, profitability of investment will have a longer gestation period. Electricity consumption is a major factor in the operating expense of a cold storage. At, Klüber Lubrication, we help the cold storages in reducing their energy consumption with our lubricants which optimise the running of the refrigerating compressors. This would be our contribution to helping the economics of operation and hence encouraging investment,” said Parameshwar.
Although government initiatives in India’s cold chain infrastructure has been encouraging, it will be worthwhile for the industry to look at the opportunities to connect various production and consumption centres with temperature controlled rail and air transport infrastructure. Agreeing Das added, “Such transport infrastructure coupled with cold storage infrastructure near railway stations and airports will provide cost effective logistics. However, the big question is can this be part of an infrastructure development plan? Lastly, while we have given some incentives to build cold storage and logistical infrastructure, it’s time to incentivise mom and pop stores to have chillers and freezers to improve availability and consumption of chilled and frozen products.”
Tejani avowed that a master plan of cold chain requirement in the entire country should be prepared based on crop patterns, harvests, fruit production etc. so that the cold storages are established in the right places with right capacity which would be fully utilised. “This in turn would make the individual cold storage units commercially viable. Of course stable and uninterrupted power supply is vital as cold storages are very energy intensive. A study of best practices in advanced countries would be helpful in creating a sound master plan.”
Another challenge that the industry has to deal with is the huge skill gap. While already today India enjoys a position among the largest producers of fruits and vegetables in the world the entry of many big multinational F&B processing plants is definitely helping in increasing the visibility of this segment. “F&B should partner with educational institutes in developing an internship program for students. The OEMs manufacturing the equipment for F&B should conduct six months course for fresh graduates on processing technology and help them get placed in food factories. Some engineering firms involved in steam and control instrumentation successfully do this in India,” stated Deshpande.
Dithmer suggests initiatives that will contribute to further adding value in the sector – for example, by adoption of global technologies and best practices for F&B processing. “This could provide opportunities for developing the business, leading to job creation and generating attractiveness for talent to engage. From Alfa Laval we are prepared to support this development through engagement with the processing companies and share our technologies for state-of-the-art efficient and safe process equipment for cooling, heating, separation and fluid handling.
Parameshwar proposed that significant investment in rural primary school education followed by creation of alternative trade training in a dual style (practical training along with classroom training) as in Germany, for children after the age of 11 or 12 would be essential to create the basic pool of industrial labour. “Thereafter, specific skills for any industry can be provided through apprenticeship programmes,” he said.
While there are challenges increased living standards and growing urbanisation are driving the demand of process food and beverages continuously in India. “Flexibility in process change over; reliability of equipment and operating practices; multi commodity storage requirement and specific energy optimisation are some of other trends that would drive the industry further in the coming years,”
concluded Deshpande.