Global Giants Commit `68,000Cr Investment in India's Food Space
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Economy 11 The Economic Times, Mumbai, Saturday, 4 November 2017 Global Giants Commit `68,000cr Aditya Pittie, the Man Investment in India’s Food Space who Owns a Slice of Pepsico, Amazon, Britannia and Coca Cola among cos that signed 13 MoUs at World Food India Patanjali’s Success price-tags, amid growing perception that they Our Bureau Kala Vijayraghavan are more ‘natural’ and wholesome than compet- Doubling Farm Incomes Step Up Infra & Sagar Malviya ing products. New Delhi: Some of the largest com- Patanjali has a network of 10,000 franchise- panies in India and abroad, including Food majors sign 13 MoUs for India’s food investments at World Food India event based stores. It also sells products to nearly a PepsiCo, Amazon and Britannia, have VIEW and beverage million kirana stores through hundreds of dis- committed investments of $10.24 bil- Major investments n u ti n tributors. lion, or about `68,000 crore, in the Indi- co s mp o i t d t t i l in th n t Pittie has proved his ability to take on the an processed foods space. `13,000 cr: PepsiCo’s s expec e o r p e e ex challenge given by Ramdev, said Acharya ITC, Coca-Cola, Cargill, Patanjali and investment for setting up food seven years. The fast growth likely Balkrishna. “He did take time initially but has Yes Bank, too, were among companies & beverage plant in the food economy suggests huge soon contributed significantly that gives us the that signed 13 MoUs at the World Food confidence to hand over additional responsi- `11,000 cr: Coca-Cola’s potential for food processing and India event here on Friday. These investments will help bilities. He is a hard worker, earnest and under- While beverages and snacks firm investment for juice bottling and allied sectors. The way ahead is to us realise the goal of doubling stands what Patanjali stands for.” PepsiCo committed an investment of fruit processing plants ati nali ta and l vi , and But it wasn’t easy for Patanjali, which then was farmers’ incomes as well as r o se xes e es `13,300 crore for setting up a food and a word-of-mouth brand with hardly any advertis- `10,000 cr each: generating massive employment in ramp up infrastructure like quality beverage plant, Coca-Cola said it will I I ing. Also, modern retailers operate on a discount invest `11,000 crore in juice bottling in- nvestments by TC on mfg & the food processing sector power, modern logistics and reli- format where pretty much every product is sold logistics facilities and Patanjali on frastructure and fruit processing HARSIMRAT KAUR BADAL, Union abl t an t h nti valu below the MRP. However, Patanjali has a zero- food processing plants minister for food processing industries e r spor . T e e re e plants and equipment. chain needs proactive policy discount philosophy across its distribution chan- nels. When Pittie approached his first customer, FMCG and hotels company ITC and ay- att nti n, a t t u v urvedic products maker Patanjali said e o so s o s ep p o er- Reliance Retail, he went in for the meeting carry- they will be investing `10,000 crore each huge opportunities in post-harvest entire population of the US and increa- sight, shore up quality standards ing a box of Patanjali products himself, despite in the sector. Ecommerce giant Amazon management, processing and storage, sing rate of urbanisation,”Sourry said. and boost innovation. his company having 1,100 employees. also committed investments in the food cold chain and refrigerated transpor- Pieter Boone, CEO at Metro Cash and Reliance Retail CEO Damodar Mall took the retail business, while Janani Foods, tation, and organic and fortified foods. Carry, said the recent policy decisions bet and put the products on shelves. “You or me Metro, Cargill, Britannia, Hershey’s, Nestle chairman Paul Bulckecongra- to improve ease of doing business, the current 10% to 30% can increase the can’t decide what will sell. Let consumers decide Blue Star India, SharafGroup of the tulated the PM on India climbing 30 pla- strong encouragement to FDI, demone- GDP by as much as five-fold,” he said. for us,” Mall told Pittie. UAE and Yes Bank committed invest- ces in the World Bank ranking on ease tisation and GST make India a viable Acharya Balkrishna, MD at Patanjali, Fortunately for him, it worked as consumers ments across food processing projects, of doing business. “This is relevant, place to invest. “Metro is convinced of said Baba Ramdev’s company would set lapped up the products which had price tags manufacturing, exports and financing. impressive and will encourage invest- India’s p otential. We are excited to j oin, up food processing units in six different Mumbai: When Baba Ramdev met Aditya Pittie lower than rivals but unlike other products, had “These investments will help us reali- ments in India,” he said. Amanda Sour- explore opportunities to empower In- locations in the country “for products four years ago, the glaring contrast in their ap- zero promotions or offers on them. “Our strategy se the goal of doubling farmers’ inco- ry, global president of food at Unilever, dia’s food economy and we are thrilled ranging from biscuits to herb extrac- pearance was striking. One, a bearded baba in to sell Patanjali under one bay and location paid mes a s well a s g enerating massive emp- said: “India has been at the forefront of to be part of this journey,” he said. tion”. Coca-Cola president T Krishna- a saffron robe with rustic mannerism and the off. There were consumers of Patanjali who got loyment in the food processing sector,” economic growth for the last few years “India’s consumption market is projec- kumar said the beverages giant’s in- other, a suave 30-year-old entrepreneur from to experience the entire range in one location Union food processing industries mi- and ranks itself in the top 10 in GDP ted to triple to $4 trillion by 2025 with the vestments “will help catalyse the count- King’s College London. But together, they have as opposed to different categories. To me these nister Harsimrat Kaur Badal said. terms,” she said. “The opportunity of bulk of expenditure going into food pro- ry’s fruit processing industry by crea- now helped create a business empire selling two innovations are not only unique but also un- Earlier, inaugurating the three-day food in India is huge with a population ducts,” ITC CEO Sanjiv Puri said. “Im- ting demand through new products, two dozen mainstream FMCG products — from precedented in modern retail,” event, Prime Minister Narendra Modi of 1.3 billion people, emerging middle provement in agricultural yields and in- generating new opportunities for far- toothpastes, shampoos and other personal care How a Baba Pittie said. invited investors, saying there were class, a youth segment larger than the crease in the level of processing from mers, local suppliers and retailers”. products to modern convenience foods such as and a Suave In India, Ayurvedic brands cornflakes and instant noodles. Young have outgrown overall con- While Patanjali Ayurved had a meteoric rise Entrepreneur sumer products market by three to a Rs 10,500 crore company now from barely created a times in household penetration Rs1000 crore in 2013, its sole modern trade dis- business and over ten times in volume tributor, the Pittie Group, saw its revenues surge empire growth. But it seems the orange- PM Meets CEOs, Urges Deeper India Engagement to nearly Rs1,200 crore from scratch. robed Baba had a halo effect, not “My father had known Swamiji and Acharyaji just on the entire category but also his partners. Modi for the government’s liberal poli- Future Group CEO Kishore Biyani, (Patanjali CEO Acharya Balkrishna) for almost Anand Mahindra partnered Pittie and Kishore Biyani says cies on foreign investment as well as who was at the meeting, said industry eight to nine years. When I proposed a structure brought him on board to reposition EPIC, the GST, which has made operations and leaders discussed the huge potential to build a supply-chain network with a single- niche infotainment channel that had investors foreign investors bullish transportation easier, and the World for food processing in India, which had window service to Patanjali for the entire organ- like Mukesh Ambani but is now owned jointly Bank’s recognition of how India has ta- prompted companies to commit in- ised channel, Swamiji merely took three to four by Mahindra and Pittie. Pittie is the managing n tunity in ndia ken a quantum leap in making busi- vestment. “There was a huge appetite o oppor I A minutes to agree,” said Pittie, CEO of the Pittie director of the channel with a minority stake. ness environment significantly easier, (from foreign investors)... (they) talked JH Group that started in 1991, and has business in- “When I first met Aditya, I didn’t even know officials and company executives said. A of huge opportunity and market here. terests in real estate, spiritual channel Shubh Tv about his involvement with the Patanjali Our Bureau CEOs of Amway, Danfoss, GalxoS- In the room, all CEOs put together had and also owns a majority stake in frozen yog ur t FMCG business. I only knew that his family mithKline, Ise Foods, Kikkoman, Lulu RENDR an M-cap of $2 trillion.” chain Yogurtbay. His father, Krishnakumar had been running some TV channels. I was New Delhi: Prime Minister Narendra Group, McCain, OSI Group, Mondelez AM The PM said the observations of CE- Pittie, has been a follower of Baba Ramdev.