NBFC to exclusively fund food processing sector ‘by year-end’

Source: The Hindu Business Line, Jul 15, 2018

Kolkata: Food Processing Industries Minister Harsimrat Kaur Badal on Friday said a non-banking finance company (NBFC), to exclusively cater to the needs of the food processing sector, will be operational by the year-end.

The NBFC, which is likely to be named Agro-Processing Financial Institution, would entail an investment of about ₹2,000 crore. The government will pick up 20-per cent entity and invest a seed fund of close to ₹400 crore. The remaining will come from the private sector. “The RFP (Request for Proposal) is likely to be floated by the end of this month. There is a lot of interest from the private sector not just nationally but globally (to invest in the entity). We hope the NBFC would be operational by end of this year,” she told newspersons on the sidelines of an interactive session organised by the Indian Chamber of Commerce here on Friday.

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Tata plans to merge food and beverage businesses

download (8).jpgSource: LiveMint.com, Jul 03, 2018

Mumbai: Tata Group, India’s biggest conglomerate, is evaluating a proposal to integrate its food and beverage businesses into a single company, people with knowledge of the matter said.

The Mumbai-headquartered group is considering separating the salt and branded lentils businesses of Tata Chemicals Ltd. and folding them into Tata Global Beverages Ltd., according to the people who asked not to be named because the information is private. It’s also weighing merging Tata Coffee Ltd., which owns coffee plantations and tea gardens, with the beverages company, and entering dairy, they said.

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Zomato to serve 25 more cities in India with business expansion

Source: Business Standard, Jun 27, 2018

New Delhi: Food ordering app Zomato on Wednesday said it has launched its restaurant reviews and ratings platform across 25 new cities in India, taking the number to 63 cities.

Newly launched cities are Thiruvananthapuram, Vijayawada, Raipur, Madurai, Jodhpur, Thrissur, Ajmer, Manali, Alappuzha, Gorakhpur, Ooty, Kota, Manipal, Dharamshala, Jammu, Haridwar, Jalandhar, Rishikesh, Mussoorie, Udupi, Cuttack, Shimla, Palghat, Pushkar and Srinagar.

“India continues to be our highest priority market and we will continue to expand and build further depth within the country. We are doing everything to take Zomato to more cities – to enable the growth of the restaurant industry and help our audience make better food choices,” said Oytun Calapover, Global Head – Listings Business, Zomato.

Zomato launched its online ordering and food delivery services in May 2015. Globally, Zomato is present in 24 countries and serves more than 50 million users every month.

Food retail firms need to maintain separate books of accounts, inventories

Source: The Economic Times, Jun 25, 2018

Food retail firms having foreign investments will have to maintain separate books of accounts and inventories in warehouses, the government has clarified.

Currently, the government permits 100 per cent foreign direct investment (FDI) in the food processing sector, under approval route.

As per norms, a foreign company can open a wholly-owned subsidiary in India to retail food products produced and or manufactured in the country by way of opening stores or online.

It is clarified by the Department of Industrial Policy and Promotion (DIPP) that “business of food product retail trading is required to be kept distinct and separate from other businesses, if any, of the investee company by way of maintenance of separate books of accounts and records (including sales records), separate bank accounts, and separate invoicing”. Read the rest of this entry »

Yogi govt clears decks for Patanjali’s Food Park after pull-out threat

download (1)Source: Business Standard, Jun 20, 2018

Lucknow: The Uttar Pradesh (UP) government approved on Tuesday a proposal for the Patanjali Group of Baba Ramdev to set up a food processing park at Greater Noida.

The state Cabinet allowed a transfer of land between two of Patanjali’s subsidiaries for this. The estimated investment is a little over Rs 20 billion. The proposed facility would be entitled to various incentives under central and state policies.

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India’s online food aggregators are taking lessons from China

Source: ETRetail.com, Apr 13, 2018

India’s resurgent food-technology sector is having no respite even after its massive cleanup last year that helped it draw investors back in and garner massive amounts of capital.

Much of this was pocketed by leading food aggregators Zomato and Swiggy even as the country’s largest ride-hailing platform Ola drove into the sector with an acquisition lifeline to Foodpanda.

With the rules for the food-delivery business now cast in stone, the all-important metric for aggregators to achieve remains order volumes.

And as food-delivery startups try every trick in the book to increase the number of orders, the strategy that has emerged front and centre for them is the cloudkitchen model.

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Ramdev’s Patanjali expanding in mega food parks biz, bags biggest contract

download (4)Source: Business Standard, Apr 12, 2018

Ramdev’s Patanjali group is – slowly, but surely – expanding its footprint in the processed food sector across India, suggests information obtained by Business Standard under the Right to Information (RTI) Act.

On January 15, 2018, the Modi government gave an in-principle approval to Patanjali Food & Herbal Park Noida Private Limited for setting up a Mega Food Park in Gautam Buddh Nagar (Noida). The cost of the envisaged Noida project is Rs 2.6 billion – the highest for any individual mega food park developer over the past decade. According to the information provided by the Union Ministry of Food Processing, Patanjali Food & Herbal Park in Noida is “in the process of meeting the conditions for final approval”. It is the only contract for mega food parks given this year by the Modi government.

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