FOOD AND FOOD PROCESSING INDUSTRY

It is challenging to find an inclusive way to cover all aspects of food production and sale. The
UK Food Standards Agency describes it thus:

"...the whole food industry from farming and food production, packaging and
distribution, to retail and catering."

The Economic Research Service of the USDA uses the term food system to describe the same
thing:

"The Food system is a complex network of farmers and the industries that link to them.
Those links include makers of farm equipment and chemicals as well as firms that provide
services to agribusinesses, such as providers of transportation and financial services. The
system also includes the food marketing industries that link farms to consumers, and
which include food and fiber processors, wholesalers, retailers, and foodservice
establishments."
The term food industries covers a series of industrial activities directed at the processing,
conversion, preparation, preservation and packaging of foodstuffs. The food industry
today has become highly diversified, with manufacturing ranging from small, traditional,
family-run activities that are highly labor intensive, to large, capital-intensive and highly
mechanized industrial processes. Many food industries depend almost entirely on local
agriculture or fishing

Food processing includes the methods and techniques used to transform raw ingredients into
food for human consumption. Food processing takes clean, harvested or slaughtered and
butchered components and uses them to produce marketable food products. There are several
different ways in which food can be produced.

One-off production: This method is used when customers make an order for something to be
made to their own specifications, for example a wedding cake. The making of one-off products
could take days depending on how intricate the design is.

Batch production: This method is used when the size of the market for a product is not clear, and
where there is a range within a product line. A certain number of the same goods will be
produced to make up a batch or run, for example a bakery may bake a limited number
of cupcakes. This method involves estimating consumer demand.
Mass production: This method is used when there is a mass market for a large number of
identical products, for example chocolate bars, ready meals and canned food. The product
passes from one stage of production to another along a production line.

Just-in-time (JIT) (production): This method of production is mainly used in restaurants. All
components of the product are available in-house and the customer chooses what they want in
the product. It is then prepared in a kitchen, or in front of the buyer as in sandwich
delicatessens, pizzerias, and sushi bars

The food industry has a large influence on consumerism. Organizations, such as The American
Academy of Family Physicians (AAFP), have been criticized for accepting monetary donations
from companies within the food industry, such as Coca-Cola. These donations have been
criticized for creating a conflict of interest and favoring an interest such as financial gains
 INDIAN ICE CREAM INDUSTRY

Ice-cream is typically regarded as a seasonal product, with demand peaking during the summer
months. Winter witnesses a sharp decline in consumption and resultant dip in sales and profits.
However, with the marketplace teeming with a host of innovative frozen variants, which
consumers are enjoying even in the cold months, there is a surge in winter sales.

Indias current ice-cream market is worth Rs 3,000 cr, including the unorganised sector. The
branded market has a host of homegrown and international players, namely, Top n Town, Amul,
Kwality Walls, Mother Dairy, Vadilal, Cream Bell, Baskin-Robbins, etc, amongst the the prominent
ones. Whilst Hagen-Dazs, Baskin-Robbins, London Dairy, New Zealand Naturals, and Hokey
Pokey cater to the high-end market, the likes of Amul, Vadilal, Cream Bell and Mother Dairy are
available at wide-ranging price points. Lately, the imported concepts such as frozen yogurt and
gelatos are gaining popularity. The more recognisable Fro-Yo brands are Cocoberry, Red Mango,
and Yogurberry, while Amore, Gelato Vinto and Gelato Italiano are popular gelato brands, and
primarily belong to the super premium to premium segments.

However, per capita consumption of ice-cream in India is quite low. R S Sodhi, Managing
Director, GCMMF (Amul), informs, We are still at the level of 400 ml of per capita consumption
of ice-cream per year compared to the global average of 2,300 ml. Unlike the West, Indians enjoy
a range of other sweet options such as the traditional mithai, but the icecream is slowly
increasing its share of the Indian palate.

Subhashis Basu, Business HeadDairy Products, Mother Dairy Fruit & Vegetable, says,
Internationally, ice-cream is treated as a habitual intake. In India, the category is more
aspirational, impulsive and treated as a relief in the scorching summer months, so it offers
immense business potential that is yet to be tapped.

Evolved markets are on a different footing. Frozen desserts category is still a long way from
becoming a part of diet/food plan of locals. The scenario is gradually changing wherein other
than tier 1, 2 and 3 markets are also moving up the consumption ladder, observes Nitin Arora,
CEO of Cream Bell.
Increasing urbanisation, rising incomes, consumer awareness, improved cold supply chain,
growing deep freezer penetration, and growth of modern format retail facilities are giving a fillip
to the countrys frozen desserts business, which is highly capital intensive.

Ice-cream is one of the fastest growing food categories in India. Notably, the business is seasonal
in nature with April to June being the peak season and November to January the lean months.
Sales slacken during the monsoons also.

In recent years, consumption of ice-cream and other frozen novelties in winters has been on the
rise. A mix of factors is responsible for lessening the seasonal impact and contributing to the
overall growth of the countrys ice-cream industry such as changing consumer perception,
capturing regional variations, diverse consumer segments, favourable retail location, product
range and innovation, festivities, and marketing and promotions.

Currently growing at 12-15 percent annually, the future prospects of Indias ice-cream market
seem promising for manufacturers, suppliers and retailers. A number of regional players have
also started expanding. The entry of new players will further intensify the struggle to get a bigger
market share.
 TOP N TOWN : A COMPANY OVERVIEW: RAMANI INDUSTRIES

TOP N TOWN has been serving ice creams with smiles for almost forty glorious years now. TOP
N TOWNs history dates back to a humble beginning by Late Shri Balchand Kukreja in 1970. The
reins of the business were taken over by his grandsons in the form of RAMANI INDUSTRIES.

They revolutionised the ice cream wonderland by encompassing the whole ice cream eating
experience and opened up to 600 parlors that has made the brand a love for all in almost every
household. At present it has a robust distribution network that spans close to 20000 retail stores
with its strong presence in 8 States. Including Madhya Pradesh, Chattisgarh, Maharashtra,
Gujarat, Telangana, Andhra Pradesh, Odisha, Rajasthan etc.

TOP N TOWN is all set to become the national player in the ice cream industry by 2020, with the
path breaking innovations and strategic associations. Keeping in mind their commitment to
provide quality products.

Acknowledging health concerns of its customers, Top N Town also pioneered the production of
low fat and sugar free ice cream in Central India. To supply fresh products across all states, the
Company has plants at Bhopal and Durg (Chhattisgarh) with a combined production capacity of
1,00,000 litres a day.

Keeping with the times and changing tastes of customers, Top N Town, as an ice cream brand
has come a long way. Fast moving ahead with its path-breaking innovations, strategic roadmap
and fruitful partnerships, Top N Town is all set to become India's most loved ice cream brand, a
delicious treat that will be savoured by people of all age groups.

The Mission and values of the company include:

To deliver the ultimate ice cream experience to our customers by:

Staying true to our commitment of providing best-in-class ice creams & desserts made
from healthy and premium ingredients

Delivering our prompt services, world-class decor, and a selection wide enough to meet
each individuals need
 Constantly delighting our customers to ensure that they keep coming back for more

o To be a great place to work where people are inspired to be the best they can be, by
encouraging creativity and innovation.

o To be a true leader in thought and action and ensure that all stakeholders in our business;
whether large or small; cherish and value the relationship.

Values

o Live Quality

o Passion for Excellence

o Encourage Innovation & Creativity

o Fairness & Integrity

o Adherence to Regulatory Environment

 QUALITY TESTING

At Top N Town, they give maximum significance to the quality of their products and have got
certifications from Quality Management System ISO 9001 : ISO 22000 and Food Safety
Management System by IQNet and Quality Austria.

Its done by ensuring check on raw materials as well as production lots.

 ECONOMICS

As an industry, food industries have been growing in popularity and have been elevated to the
levels of other processing industries. The production industries have been the backbone of Indian
economy and being a part of the Small and Medium Enterprise, it is also ranked among the best
in the industry. The company boasts an annual turnover of nearly 230Cr.
 (a) Proportions of the key cost elements namely raw material, labor, utilities, andfuel
(b) .(b) Productivity of labor.(c) Turnover of inventory, receivables, and fixed assets.(d) Control
over prices of outputs & inputs.(e) Behavior of prices of inputs & outputs in response
to inflationary pressures.(f) Gross profit, operating profit, and net profit margins.(g) Return
on assets, earning power, and return on equity.

The raw materials for the industry as mentioned earlier are sourced from outside. The Plant has
sophisticated and automated equipments that are of highest quality, most of them are imported
to make the level of automation really high and quality at par with the firms performance
standards.

A good investment has been made in the plant construction, the storage equipments,
refrigeration units and others. The plant also has an attached on field Quality testing and
Microbiology Dept. The equipments present there are also robust enough to aid in Research
and Development of new flavours and are constantly worked upon to bring out the best in the
market brand value.

The industry has a branched organizational structure, with the Production Dept, Maintenance &
Safety Dept, Quality control Dept, Human Resource Dept, Purchase Dept.

Efficient and qualified staff man the industry and have been working tirelessly in enhancing the
business opportunities as well as establishing a healthy work culture as a learning environment
for all.