Brewing success: The changing face of tea in India

Long Range Systems (LRS) is a US headquartered industry-leading technology solution provider that helps service-based businesses like hospitality, education, retail, healthcare, restaurant, and manufacturing segment provide a better customer experience. Akhil Bagga, CEO, LRS India when introduced the paging/buzzer system in India, he had a strong belief that this innovative product will change the way the hospitality industry works in India as nothing along these lines existed before. And, LRS India bagged its very first order just after its inception in India, it was October 2010 when they installed the guest paging system in one of the largest sweet shop chains in India. Further to which there was no looking back for them, they not only ventured into QSR but also installed their paging systems into corporate kitchens, outdoor resorts, luxury hotels, corporate board rooms, manufacturing plants, government agencies and much more. “LRS India now has a presence in more than 24 states across India and we feel fortunate to have worked with over 100+ brands & have successfully installed more than 10,000 paging systems to our happy & loyal customers. Some of our prestigious clients include Haldiram, Reliance Industries, Bikanervala, McDonalds, CII, P&G, Chaayos, Osho International, Westin Hotels, Cafe Coffee Day, Gopal Sweets & many more,” added Bagga. Excerpts from the interview:

How LRS product range is enhancing customer experience in Covid times.

LRS devices seek to restore the confidence of customers that eating out is now possible in a safer manner, our products were effectively used to cut down the rush at counters by 80% as now their esteemed customers could relax and enjoy with their families and only come to the counter when their order was ready for pick up.

Also Read: 5 Food & Technology Trends That Will be Big in 2019

Why LRS innovations will play a critical role in helping customer-facing businesses communicate better with their customer base in Covid and post Covid scenario?

During pre & post Covid times customers were and are looking to eat out with no/minimal human contact. LRS paging evices are sanitised & cleaned after each use and handed over to the next customer making sure the safety and hygiene is well maintained. This has helped customers gain confidence in their eating out experience and believing that the LRS paging system helps them to know when their order is ready and only then they need to go to the counter to pick up their order. 

How such technology is supporting restaurant businesses in these challenging times. What benefits are restaurants getting?

LRS paging systems not only gives the customers a comfortable dining experience but also helps the restaurant businesses to reduce their wastage by more than 70% as the customer is immediately notified as soon as their order is ready which means that they are served hot & delicious food increasing their customer satisfaction. Our system also helps navigating and finding the desired customer at his exact location without any delays. Another strong sustainable benefit of using our pagers is that the staff members are now having less human contact and enables them to swiftly manage their crowd and customer expectations.

We at LRS India are looking to expand our reach in TIER 1, 2 & 3 cities, as well as expand to areas where paging systems can be the new way to communicate, for this we are also looking at appointing resellers and dealers to make the business grow and spread across the country

Upcoming innovations and the new range of products

LRS India has launched its latest cloud-based tool connecting proprietary hardware, smartphones, and even third-party IoT devices to an interactive dashboard for enhancing operations for various industries. LRS Connect enables any business to quickly and easily deploy list management and task management for real-time operational efficiency and analysis of those tasks over time to further optimize and scale business processes. Some of the key features include an easy to use guest on-boarding module allowing customers to be added to the list, quoting an estimated wait time, and recording specific preferences and requests – all in a matter of seconds. Guests – and even staff - can also receive notifications on their mobile devices including countdown alerts, status and action alerts. Another new brand launch for LRS is VEN U which offers real time location services using bluetooth technology. Our VEN-U brand enables any business to engage, manage, and monitor guests, staff, and sites using RTLS (Real Time Locations System). Combined with in-depth data reporting, VEN-U provides instant insight and analysis for businesses to enhance guest engagement and maximise operational efficiency. Apart from all this, LRS constantly believes and adapts to market changes and launches new versions of its existing products as per market needs.

May Interest: How This Restaurant Chain Infuses Technology To Stay Ahead In The Industry

New trends in the area of customer experience in the restaurant business

Customers are now looking at private dining and contactless hospitality experiences and to enable this journey for the customers LRS has solutions at every step with our guest pagers, push for service systems, real-time location and table tracking devices.

Ramya Ragupathi had acute rhinitis, acute sinusitis while eating out and she was a regular intolerant to certain food ingredients and food products. It was in 2013 that she went to see a doctor after continuous dehydration and stress that led to hair fall. The doctor advised Ramya to leave wheat and dairy consumption and that’s how she noticed the change in her life. Excerpts from the interview:

How it all Began?

When I came back from UK, there weren’t much options in Singapore. I was baking since 15 years and that’s how I started working on wheat free, dairy free chocolate balls and baked a cake for a party and people were like it’s amazing and we have to sell it here. I never in my life imagined that I would be an entrepreneur.

How have you seen the growth?

In last three years we have become a food company to a food manufacturing company. I am enjoying it, learning a lot from it.

Tell us something about Oh! My Goodness.

Oh my Goodness is about serving people gluten free, dairy free and refined sugar free products. We use real food and products and we do not use any lab made ingredients.

Who is your target customer?

Demand is coming from people like me who have food allergies and are intolerants to certain ingredients. People have included this in their breakfast, lunch etc. We just don’t sell, we make people aware about food allergies and make them understand about what their body is talking and they need to understand this otherwise we will have entire generation suffering from food allergies.

What trend do you see capturing the world?

People are investing more on their health now. Earlier, they used to invest in white sugar but now they are putting in more money on brown sugars and refined sugar free products. I want to make affordable product that people should enjoy and not invest in low quality products and ingredients.

Tell us about your market presence.

In Singapore, we are on Ecommerce platforms, supermarkets, Grocers and also we have our own website wherein we are selling our products. We have pizza bases, cakes, cookies, breads and people can just enjoy food. So, whatever you eat, you should enjoy is our motto.

Tell us about your expansion plan to India and other countries.

I am looking at Indian market as the market has shifted a lot in the last two years. There is incredible demand for wheat, dairy free products. We are looking at India to sell our packet version partnering with supermarkets like Nature’s basket and the likes as setting up a kitchen at this point in time is little difficult for us.

We are also planning Dubai, Malaysia as we are also Halal certified. The conversation for Malaysia has already begun and we should be there soon. I am also planning open a new plant wherein we can manufacture these products in Singapore.

Recently Elanpro announced the launch of seven products at AAHAR, 2018 which included new launches like Flexi Drawer, Sushi Case, Pastry Case, Round Shape Pastry cabinet, Buffet Freezer, Counter Top Display Range and Counter Top Chiller SC 66. “The refrigeration industry is actively developing now and we are witnessing demand from different segments including end-use industries,” says Mr. Sanjay Jain, Director, Elanpro. Excerpts from the interview:

How long has been your company into this business?

We started this company in October 2009. We have almost completed nine years being into this company.

Take us through the journey of your brand.

Frankly speaking, I am not new to business and refrigeration. I have worked for refrigeration industry for long now. When we started this company, our main and only focus was to remain focused on refrigeration. We started with retail and horeca segment. We were in connections with Pepsi, Coke, Bisleri, and Amul. And on the other hand, we also were linked with chains like Easyday, Big Bazaar and more for retail format. The other area where our presence is very large is the Horeca segment. In horeca, there are about 3-4 segments which we are catering to. We have the mini bar which goes into the room followed by the other segment which is the kitchen. Cafes and bars are the other remaining segments for which we cater. Of all the segments, bar is the area where we are the market leaders at this particular time. In India, 70-80% bars are having small bit of Elanpro one way or the other. Maybe the unit could be supplied through Pepsi or Kingfisher, but Elanpro can be found in almost every bar located in India. You may not find our logos everywhere as many times they are given through companies like Pepsi and Coke but they are our product in reality. That is our dominance in the horeca segment. We started with a bang when we were working with Taj, ITC, Oberois, Subway, KFC and many more. Almost 80% of market share for draught beer is with us providing various companies with 100% equipments. Today we are working with all the leading brands across India which is marking a very large presence for us.

How are your experiences helping in taking your company forward?

Our focus has been to do more of brand awareness and creating a position where customers feel that we are a brand with a difference.  We have been providing more smiles on the face of chef and bartender. This is how I am trying to put my experiences come into play while catering to our customer hoping to take my company forward.

Tell us something about the distribution network.

Luckily we are supported very well by our channel partners having around 300 partners around the country. Right from Guwahati, Shillong, Agartala, Kanyakumari, Srinagar, Jammu etc, we are having dealers in almost every major class cities of India. We are still not that strong in North-East but we are penetrating it and are looking forward to get strong over there too.

What are the various challenges you face?

I will not say that we faced major challenges earlier between 2009 to 2015. The market has gone up and down for sure but that never came as a major challenge for us. We faced a little bit of challenge when there was a problem on the real estate sites where hotels and restaurants were not opening. Demonetization and GST were some other challenges we faced a bit but other than that the things were right at their place. But that is all past. Market is again going up and we are confident to do well despite challenges that can come across.

How the ever-changing food trends makes you work in a different way?

Food trends are something which keeps us on our toe. For coping with the changing market, we continuously upgrade our products range. We keep going to international exhibitions because that is what India is going to ultimately catch in the upcoming time. We believe in blending our utility with whatever is happening internationally. We customize the new things accordingly and then work on them so that our customer can get something which they are expecting.

What is your expansion activity?

There are two types of expansion plans which happen with us. One is geographical. So we are expanding deeper into North-East and sea type cities. The other is expanding my offering to my customers. So we are trying to provide our customers with other kind of products related to refrigeration. We even want to explore beyond the Indian boundary. Sri Lanka, Nepal, and Bhutan are some places where we are willing to expand.              

In last one year FSSAI is keeping busy in ensuring that the food safety is taken care of and people are getting wholesome food delivered at their doorstep. After bringing in street food vendors and online food players under food safety ambit, food safety body has drafted guidelines on operations of direct selling FBO’s.

“In order to ensure food safety, it is necessary to address all ways in which food is supplied to consumer, including sale of food by direct selling companies,” said the guidelines published on FSSAI website.

Although it is clear that any food supplied through direct selling should meet the requirements as food sold in shops, it is necessary to ensure that direct selling FBO should have mechanism to help the general public to address the issue to consume safe and wholesome food supplied by all FBOs.

The guidelines is issued to all kinds of business applicable to direct selling including the manufacturer, importer, distributor, storage, marketer, retailer and supplier of any food products.

Getting the licenses done

All direct selling FBOs need to take relevant FSSAI licenses, to be updated on a quarterly basis, along with details and identities of their agents and salesman by Central Licensing Authority. Though, the guidelines have given relaxation of not showing the network of agents on any food product manufactured/imported by the food business operators.

Also, all FBOs need to maintain proper records either manual or electronic of their business dealings. “Every direct selling entity shall maintain a register of direct sellers wherein relevant details of each enrolled direct seller shall be updated and maintained,” added the guidelines.

Handling the Consumer Complaints

Direct selling FBOs will be responsible for maintaining effective grievances redressal mechanism. They are responsible for the complaint arising of product by them or their agents. The guidelines also mentioned that all the problems arising shall be handled by the FBOs within seven days which shall consist of at least three officers of the FBOs.

From mid 2015, FSSAI is continuously been in news after bringing Nestle’s Maggi under soup and focusing on food safety by bringing in food business operators and street food vendors in an open discussion and framing policies. The food safety body has issued many guide lines in order to provide wholesome food to the end consumer. 

Tell us about the journey of Borges in India?

Borges India was set up as a 100 per cent subsidiary under the Borges International Group headquartered in Spain which today has a turnover of about Billion USD. Borges Group operates in over 100 countries spread across 5 continents. Started by the Pont family in 1896 the group enjoys a strong brand lineage. As the largest exporter of branded Olive Oil from Spain, it has distribution centers in US, France, Russia, Brazil and Australia among others. Borges India came into inception in the year 2009 and commenced commercial operation is 2010. In the six years of operation, Borges India has crossed 10 million Euros turnover and has turned profitable. Borges started with the launch of olive oil and today, has a portfolio of products ranging from olive oils to pastas, Pasta Sauces to Seed oils, Table olives to California Range of nuts.

As you believe in providing health and nutrition to Indians. How do you see the market for it?

Health and nutrition is a fast growing category in India today. With a sedentary lifestyle and the growth of lifestyle related ailments like diabetes, hyper tension, heart disorders, urban Indians have become cautious about their daily intake. Not only are they monitoring their daily intake but also, are on the lookout for healthier replacements. This trend can be seen across categories from beverages, snacks, grains to edible oils. Green Tea, mueslis, whole wheat grains, soya snacks and oats are some of the examples of the healthy products which have caught the attention of many. We realized that the Indian consumer was on a look out for olive oil which was not only healthy but also matched the taste & style of Indian cooking. That is when we launched our Extra Light Olive Oil, an olive oil which involved no chemical extraction and was ideal for all kinds of Indian cooking. Since then we have been known to be the pioneers of olive oil in India and till today command 80% share in the Extra Light category.

What are some of the products you are offering?

As a Mediterranean food specialist the company’s range of successful products spans across product categories which include Olive Oils, Pastas, Table Olives, Seed Oils California Range of Nuts, Pasta Sauces & Popcorns. We have recently launched California Pistachios, Almonds and in shell walnuts within our California nuts category and also, new variants in the stuffed olives category including the likes of Jalapeno, Lemon and Pepper stuffed Green Olives. With the same intent of introducing more healthy offerings, we plan to launch new products in multiple categories.

What is your view on the food policies and safety in India?

Under the Ministry of health & family welfare, the Food Safety and Standards authority of India (FSSAI) monitors the quality and safety of food products and over the years there have been many developments whether it has been with respect to introducing new rules for importing products, addressing the concerns of sub-standard items and simplifying the process by setting shelf-life norms and relaxing labelling guidelines. Going forward the adoption of international standards like Codex in multiple product categories will help bringing uniformity with the quality standards being adhered across the world.

Who is your target audience?

Since, we operate in multiple product categories, our target consumer differ from category to category. For pasta & pop corn it might be kids & young adults looking for snacking opportunities while for olive oil and nuts, it might be families or singles on the outlook for healthy products and replacements. But since all our products are imported, our target audience essentially is the SEC A & A+, male & female in the age-group of 24-60, educated and well-travelled, willing to try out new products.

What is your market presence (cities, retail tie-ups and networks)?

Currently, we are present in about 52 towns and cities across India. Our major chunk of business comes from modern trade approx. 65 per cent and rest of it from traditional trade, HORECA, CSD and online E-commerce platforms like Amazon, Snapdeal etc. We have our own sales force of about 150 odd people across India and distribution and logistics partners across all these towns and cities.

Going forward what is your expansion plan?

In the coming 4–5 years, Borges India plans to triple its turnover from 10 mn Euros to about 30 mn Euros. With many new categories being launched like California Range of Nuts- Almonds, Pistachios and walnuts and many others under the planning process, we are sure to bring out many new healthy offerings for our consumers. 

Over the years Indian food companies have been regularly innovating themselves, coming up with new and varied products, local and indigenous ingredients all contributing largely to the growth of food service market in India. With brands getting more organised, food companies today spell quality, practical and great tasting food, becoming a household name in India.

Today, the brands are known for their unique recipes, health oriented ingredients and state-of-the art quality controls and standards. Known for product innovations as well as offering customised and localised food products, these companies have an extensive product range including Indian gravies and curries, Tomato Ketchup, Sauces, Mayonnaise, Bread Spreads, Salad Dressings, Syrups and Dessert Toppings.

“Cremica is known for its product innovations and offering customised and localised food products. We are constantly trying to offer quality products to our consumers.” Increasing consumption of high value food products is resulting to a rapid expansion of the Indian economy which further results in changing lifestyles and aspirations.

Pushing the growth

Not only HORECA, but companies have also grown their retail side of the business which is continuously growing at the rate of 40 – 45 per cent annually and given the fact that the Cremica brand is today one of the most visible brands in the condiments business, our penetration and increase in retail sales is expected to be pre-nominal in the coming years.

According to the industry dynamics, the segment will continue in a very major way moving forward and this will lead to exponential growth in the food industry. With improved lifestyles, increasing urbanisation and disposable income in India that leads to a big increase in consumption of condiments and growth of the food services sector helps in familiarising customers about new types of products and is helping innovative companies like us to introduce new products in the market. The right brand mix for the market plays a very important role where Premium brands assure good and quicker realisation.

With an increase in awareness and education, consumers have become very selective in quality and taste of their food. They have become more demanding and hence the traditional offerings and approaches do not work to keep them loyal. Category enhancement and increasing shelf space for newer categories like Tombo ketchup, Opera crisps and Mayonnaise etc are going to increase average cart size of shoppers and these products offer better and healthier margins than traditional categories being sold from these formats. The spicy Tombo ketchup adds the perfect tangy experience. Also Opera crisps which are India’s first cottage style potato crisps prepared in olive oil for a healthy and a delightful experience. Our ready-to-eat packaged French Fries with ketchup cater to this very need of consumers bringing you one of the most satisfying snack experiences. Their epic flavour assures that each bite is as good as your favourite fast food treat. Our range of mayonnaise provides a burst of flavour with each bite and adds a creamy delight to all kinds of savoury dishes.

While coming up with new innovations the companies should also keep in mind the fact that something convenient and consistent will work wonders in the market.The condiments market in India is estimated to be about Rs.1000 crores today which is growing day by day. 

Coming from Nilgai family, what made you launch Cocofly?

COCOFLY is a continuation of the very same vision that has driven by us since day one. We are positive about the FMCG opportunities that India's rapidly changing consumer market offers to new entrants into the market. At Nilgai Foods we see ourselves building F&B brands for 21st century India, and COCOFLY is the latest attempt at achieving our vision. Our mission is to make premium food experiences more accessible to the wider Indian public, and we felt that a 100% natural coconut water with no added sugar and no preservatives is exactly what the Indian public is looking for right now.

How do you see the market for Cocofly and coconut water emerging in India?

The market is already estimated at 2600 crores, but this is the unorganised segment that consists of coconut vendors selling from push carts. We expect this market to grow considerably as packaged coconut water brings shelf life and portability benefits and therefore increases the footprint across the country where coconut water can be sold. We also expect packaged coconut water to eat into the fruit juices and nectars market as consumers switch to a healthier option of packaged drink. Over the next 5 years we think that the packaged coconut water market will grow to over 1000 crores from a starting point today at approximately 50 cr.

How are you marketing your product right to the customers?

Our launch in Delhi focused on our products USPs that makes COCOFLY stand out not only compared to other beverages but also when compared to competing coconut waters: we have highlights the fact that COCOFLY has no added sugar and no preservatives, which makes it the only truly guilt-free drink in the market. At Nilgai Foods we always look for ways to leverage technology to improve our effectiveness, so in addition to main stream ATL activities, we amplified the health message across social media and online publications.

You claim of having Cocofly 100 per cent natural. What is the shelf life of the product?

Without any preservatives we are able to achieve a 5 month shelf life for the product. Other coconut water brands can achieve a longer shelf life with the use of preservatives, but longevity is not the sole objective for us. We want to give our customers a beverage option that is genuinely free from anything negative. There can be no exceptions here. We are building a brand around honesty and integrity, and we want consumers to understand why are making these choices rather than giving them a shelf life that is commercially more viable but at the expense of their health.

From where did you source the coconuts?

We get our coconuts directly from farms in Tamil Nadu through a network of aggregation points. We try to package our drink as close to the source as possible, and we are always looking for ways to streamline and improve our supply chain.

Talking about packaging. How is the packaging for Cocofly done to deliver it fresh to customers?

We partnered with Tetra Pak during our development stage. Their state-of-the-art technology allows us to package the coconut water in the absence of any air so that their specialised heat treatment process kills any bacteria and packs the drink in 6 layers of protective packaging without the chance of contamination.

How are you selling Cocofly? Tell us about your presence in the market both in retail and HORECA?

We are in more than 3000 retail shops across the NCR including a few major supermarket chains such as Savemax, WH Smith and Religare Pharma. We have seen a huge amount of interest from both public and private sector institutions that are looking for healthier options but have only found drinks that contain lots of sugar. As a result it has been easy for us to activate HORECA accounts - we are in over 60 hospitals in the NCR, and sell to caterers, hotels and restaurants. We have recently started supplying COCOFLY to select army units, which we hope to build into a long term government supply contract. Cinema chains have also shown interest as they have seen a sharp decline in soft drink sales and need to look for healthier alternatives to give to their audience.

Going forward, what is the expansion plan?

Now that our launch in Delhi has beaten our expectations, we are looking at expanding into other cities especially in the north. We are looking at raising a round of funding that will go towards brand building and awareness. Over the next few years we want to be the market leader in coconut water and we hope that coconut water will rival the fruit juice market in size.

Also, when we talk about Nilgai as a whole what new is happening at Nilgai?

PICO, India's first hot sauce brand, is also expanding right now. We are expanding our range into great tasting 'daily essential' sauces that are a must-have feature of every pantry. In July we are introducing chutneys into the Mumbai market as a celebration of India's original hot sauce - the chutney. So far chutneys have been predominantly prepared at home but we are banking on the growing number of nuclear families and double income households who no longer have time to prepare simple everyday accompaniments from scratch. PICO's range of chutneys will liberate the woman of the house and give her more time to enjoy with her family. We are excited about this new phase in the PICO journey as it will open up a huge market that we previously left untapped with our original range of PICO hot sauces.

What made you leave behind your glamorous career and enter your fathers’ food business?

I wanted to be an Entrepreneur even before I could pronounce the word. As a child I’ve always wanted to make Zorabian Chicken the largest in India. I went to the US to do my MBA so that I could work on making my dream come true. Acting was a co incidence. I loved performing and being on stage ever since I was eight years old. However, I never thought of it as a career choice. After giving birth to my second child, I decided to build on my Father’s legacy of being Mumbai’s most premium quality chicken producer with passion and commitment. However, that doesn’t mean I’ve decided to entirely leave my acting career behind. In fact I just did a play - Dinner with Friends which is a Pulitzer Award Winning Play - directed by Feroz Khan. It all depends on the script and the amount of hours I need to put in because besides being an entrepreneur, I’m also a mother of two gorgeous kids who also need my attention.

You were the one who made Zorabian Chicken available at top retail outlets. What were the challenges faced?

With Zorabian being such a respected brand in the wholesale space in Mumbai, to start a retail brand and watch the brand go from Mumbai to Pan India has been a dream for both my father and me. Even though my father is respected in the poultry industry, the journey has been challenging and intense. I handled the distribution and all the infrastructural and marketing changes that came with going retail, like expanding delivery services.

Meanwhile it has been very challenging to grow a brand without compromising on the quality of the products as we maintain very high standards when it comes to quality but, what’s amazing is that we’ve managed to grow a brand pan India and also excelled at it. Standardisation of protocols was extremely challenging, but it made the process of expansion easier.

How is the company growing? What new can we see from your end in coming years?

The company is growing rapidly in the retail space. Our Vision and ability is helping us grow and be number one in quality and convenience as well. We want to be the most trusted brand when it comes to Health and Food Safety. We definitely have plans to expand our Ready to cook range. Since, we have a pan India presence, our next step will be to take our products International.

I also have plans to set up a chain of Zorabian QSRs that not only sell our products, but also create various recipes with our products to maximise on our culinary experience.

Setting up a processed food business is challenging in India. How are you managing the supply chain process?

We have our own distribution in Mumbai so everything is in our hands. We had to develop a partner network Pan India and work with them.

Your brand is known for its quality. What are some of the ways you always adhere to while coming up with best products?

At Zorabian - We pride ourselves on having highest quality and safety Standards. Our products enjoy a reputation of being safe and healthy owing to the fact that we do not use preservatives and antibiotics.Our objective is to provide quality chicken that is safe for customers. We have our own farm, which means we have complete control of our products, right from breeding to packaging. We also practice contract farming which keeps a check on the production process ensuring everything is as per our standards. We believe in an All Natural Diet because we do NOT use heavy Antibiotics and other preventives in our feed.

Talking about your retail presence. How does it look like (distribution channel, cities, stores present)?

We have a Pan India Footprint with a strong presence in Mumbai, Pune, Delhi, Bengaluru, Hyderabad, Goa, Gujarat, Bhopal and Chandigarh. Our retail products are available at all leading modern retail trade Institutions like Natures Basket, Food Hall, Gourmet West, Hypercity, Star Bazaar, Big Bazaar, Aditya More and Spars. We also take great pride in associating with prestigious and quality conscious and committed Institutions like Degustibus, Allied Catering, The obroma, InterContenintal, and HyperCity amongst a host of others.

These days there are many brands under the category you are operating. How do you overcome the growing competition?

Zorabians retail brand has been created on three strong pillars - Quality, Convenience and Reliability. We have our own farms which allow us to keep a check on the entire production process. We do not mix weight gainers in our feed, which also ensures zero contamination and it means that our chicken in less fatty. We are educating our customers on what sets us apart and what it is that we do differently and that has really helped us create a solid loyal following of customers.

How about entering e-Commerce space?

We are available on various leading platforms like Natures Basket, Big Basket, Frozone, Grofers to name a few. It offers consumers convenience of having products delivered at their doorstep and it has been working very well for us.

How have you priced your products taking in mind the target audience?

We provide high quality products at affordable prices. Why should good quality be unaffordable?

What was the idea behind starting Nature’s Hut?

I started Nature’s Hut in 2008. We are making our products from fresh ingredients and we don’t preserve the raw materials. We use chemical free raw materials. We supply the raw materials from Kandi forest area, the unit we have in Himachal belt.

What is the product range?

We have some exclusive products like fruit barfi. The concept is that the traditional sweet has khoya, sugar, ghee and oil and it all have adulteration and we are making sweets without all these ingredients. And, our barfi is made up of fruit pulp, almonds and brown sugar which have a shelf life of four months. Apart from that we have some natural anti-oxidants, unique teas from amla, crushes. We are organic certified. We have apple cidar vinegar, jamun cidar which is different from other cidar because we are making it from fruit juices and not extracts.

What is your market presence?

We are not commercial; instead we are selling products through our retail outlets. We have 25 outlets, 14 in Himachal, 4 in Uttrakhand and 6 in Rajasthan.

Who are your target customers?

We are targeting upper middle class crowd. We are not focusing on masses because our product is a high end product. We give small quantity with high quality. For ex: we make sweet lime pickle and if you taste that pickle you will find that it has many herbs and it solves every digestive problems. So, with people we are selling the finest products and that’s why the rates are not competitive. Our client is happy with the product and the reputation is very good.

Which are the places we can find you?

We are selling at tourist places only. We are not selling at plane areas. We will cover entire India tourist places. By 2020 we will open 250 outlets at these locations.

What is your expansion plan?

We are working on a strategy to cover tourist places first and we will cross 250 stores by the end of 2020 that time we will approach Hyper city, Big Bazaar and more in metro cities to provide us a space to open our brand. The rental is very high at these markets and that way it’s not possible to cover the ROI that we get presently.

We are also working on some good products. Gluten free products and good quality wine.

What is the average footfall at your outlets?

Foodtfall depends on area to area and season to season. This is a tourist season so we are getting around 80-100 footfall at a single outlet daily.

Do you have any franchise outlet? What is the average cost for a franchise outlet?

We are company owned outlets. It costs around Rs 15-20 lakh on an average to own our outlets.

Where is the manufacturing unit located? Which is the top selling product?

We are having two manufacturing unit- Talwara and Patiala. Barfi is the highest selling product. 

In conversation with Restaurant India, Jigar Mehta, Co-Founder, Honey Twigs talks about their venture and the need for the segment in Indian market.

What made you start this concept?
While growing up, I remember how much I loved honey. It was really something I felt more people should use in daily life and was quite passionate about it. The journey began when my partner Paras Fatnani and I did a survey in 2014 to understand how people were really using honey. This gave us some very interesting insights. We understood that while more people were keen to consume honey today than a few years back, they had a few concerns like it being messy, sticky and tough to travel with because the current forms of packaging available weren't convenient enough. We then looked at the trends and then spent over a year trying to formulate a solution with the superfood that is both an energy booster and a healthier alternative. Our solution was Honey Twigs, honey in single serves.

How is the category growing in the fast evolving food market?
Statistics show that the health food market and especially the honey category is growing rapidly. More and more people are turning to health foods; more people are joining the gym, running marathons, downloading fitness apps etc. A superfood like Honey is an easy win for them. And, we aim to change this from an ‘on-the-shelf product to on-the-go food.

What is your supply chain process?
We procure 100 per cent pure, antibiotic free honey that comes from Himachal and Punjab for the Multiflora and Muzzafarpur in Bihar for the Natural Litchi. We get lab tests with every batch to guarantee the quality, something that helps us deliver the best products to our customers.
We then pack the honey in our own packaging arm at our headquarters in New Delhi and then work with distributors currently focusing on Maharashtra, Delhi NCR and are in talks with a few others for certain markets in the south and east of India.

Where can we see your product at markets in India? Please share your market presence?
We have positioned ourselves in 3 key areas of business – Retail, Food Services and Gifting. We are currently in nearly 100 retail stores in Delhi and Mumbai predominantly and a few in the rest of the metros basis of the fact that we went into retail only last September. Some major stores customers can find us in are Foodhall (Pan India), Le Marche (Delhi NCR), Needs Gourmet in Gurgaon, Society Stores & Alpha Supermarket in Mumbai.

We are also in talks with Star Bazaar, Hypercity and Westside Gourmet.

In Online retail – we are on Amazon, Delightfoods.com, Namkeenwale, Askme.com and The Gourmet Box amongst many others.

Are you also supplying to restaurants and hotels?
Yes, we are closely working with many restaurants and hotels. We work with Sarovar Hotels, Café Lota, Le 15 Patisserie The Pantry, Sassy Spoon, Woodside Inn, Snackible, Chaipoint, Deli France, Holachef, Bagrrys on the Go, Ranjit’s Svaasa in Amritsar amongst others.

How many product categories are there within Honey Twigs and what’s your plan expanding the portfolio?
Currently, we have 2 natural variants available in Honey Twigs – Multiflora Honey and Natural Litchi Honey. And we have 4 SKU’s for retail (10-twig pack and 30-twig pack for each variant) and 2 in the food services segment (Single serves for each flavour)

Our plan is to introduce a few new flavours like Acacia as well as an organic range with Honey Twigs. Also we are simultaneously working on launching a few gourmet flavours like – Vanilla infused honey and Cinnamon infused honey in jars but that will be under a different brand within our business.

Talking about competitions, do you see any competitor in the market?
Competition can be defined in 2 ways for us – one is the traditional form in which many leading brands sell honey and the other is other convenient health foods that consumers have available. However, we feel that we have the first mover advantage and the new innovations that we are working on will help us propel to greater heights.

Going forward, what is your expansion plan ( city, number, retail partners, product line)?
Our goal is to be in 5000 stores across India in a year from now. We want to be available in all large modern trade stores and general stores as well as work with hotels, restaurants, cafes as well as other food services providers.

Product wise – we will be launching a lot of new flavours in Honey Twigs as well whole new range of other packaging forms and are also working on collaborations with other complementing products so the scalability can be achieved.

In terms of markets – we are focusing ourselves largely on India but we’ve had some interest from UAE and United Kingdom and are currently exploring the same.

We have seen that food business has become the new love of investors. What is your plan attracting them?
We want to create a real impactful business. We have had some interests from some early stage investors, however we wish to develop a good financially scalable product line that can be sustainable and then use the funds to innovate further and scale internationally.

By the end of the year, we should have some ideas on the way ahead on this front.

What are the unique innovative and R&D techniques that keeps you growing.
We are constantly trying to innovate and grow in terms of new flavours, varieties of honey and new innovative ways to bring the super food to our customers, keeping in mind the purity and the quality of honey. There are some exciting things that we are working on currently and should be able to get to our customers soon.

In the near future we also want to innovate in other healthy foods and super foods.

Tell us about your business in FMCG?

We are 100 per cent exporters poised to give quality. We have over 2000 FMCG products. We are trying to give the same quality in India that we are exporting to the international market. Our focus is on food because people today are more conscious about their health. What they are eating is adulterated or not. So, they know the quality, they know the pricing. We are trying to give value for money products.

What made you enter into the FMCG business?

There are lots of issues arriving in last few years. Some of the MNCs are having problems in quality products and we saw something negative in the quality. So, to cater to the quality we entered into the business. We work on the principle of quality.

What is the supply chain process?

We are basically running on three formats, general distribution- we have launched 100 plus products, for retail stores Marya Day is opening its own retail stores. Meanwhile, we also supply to restaurants and hotels into institutional sale.

How many outlets you are planning?

The first outlet is opening on 5^th of June. We are opening three stores in Bareilly, one each in Moradabad and Aligarh. So, we are opening first five on the same date. And, we are already targeting 100 outlets by end of 2016.

What is the contribution of food in your overall business?

We are getting around 72 per cent of business from food only.

What is your focused food category?

We are selling mustard oil- pure kacchi ghani, salt, iodine salt, noodles, snacks, spices amongst others and that will be our focus for this year.

Where is manufacturing unit located?

We have different plants around India- we are having plants at Bareilly wherein we are manufacturing bakery, confectionery, atta, snacks, and spices plant is in Noida. We have two metric tonne of spices production daily, we produce around 6000 litres juices per day, and we have around 150 litres of mustard oil and 300 kg of noodles production daily.

What is your view on FSSAI law?

FSSAI law is very apt. If government has set some standard manufacturers should follow it in order to deliver quality products.

How about your market presence? What is expansion plan going forward?

We are present in 19 states in India. We are exporting to Middle East, Africa, America and other global markets. We are targeting rest part of India, Africa.

When did you entered into the refrigeration business?

Elanpro started its journey in October 2011; we started small as a strategy that we will only work with our own brand because most of the company want to promote the global brands. We realised that in India if you really had to grow and want to become big you can’t promote multiple brands. And, when the global company enters India they take you for making the product big in the region and when the product becomes big they either appoint multiple companies or directly enter into the business.

How has Elanpro grown over the last five years?

We are today one of the fastest growing and among most of the profitable company. Elanpro is today a reliable product in the refrigeration industry. We are associated with something which has quality.

What are the different segments you are catering to?

We are only focusing on refrigeration. Our major focus relies on- HORECA, Retail, Life Science. On the HORECA and retail side we strongly focus on beverages, beer company, milk company, Pepsi company and now we are introducing a product from Italy that will be for frozen beverages and frozen carbonated beverages.

Which is your top revenue generating segment?

Retail gives larger revenue because customers like Pepsi, Coca Cola, beer companies who are placing themselves in retail. And, for us retail is a bigger market. Retail has the major growth. Almost 55 per cent revenue comes from retail, 35 per cent from HORECA and the rest from the life science.

Can you share some of the top hotel and restaurants where you are supplying Elanpro’s refrigeration?

We work with almost all the hotel chains. We work with Taj, ITC. We work with brands like Cafe Coffee Day and Travel Food Services (TFS). We work with The Beer Cafe. We also give equipment to people like Pepsi, Coca Cola, Kingfisher, Foster.

Which are your major countries in terms of importing the machines?

We have major imports coming from Italy, China, Turkey, Spain, USA, Latin American countries.

How about the competition in market?

There is no one single competition there are multiple competition. When I look at retail, I have competition from Voltas, Blue Star carrier, but they don’t have upright. If I look at HORECA segment we may have competition from Electrolux, Foster or other big companies which are there. But not many companies are present in bar refrigeration. They are into icing. We have segment vice competition and not a pan competition. In our entire segment we are a leading player.

What is the major challenge growing your business in India?

We are heavily affected by the change in exchange rate because that deteriorates our entire profit.

Do you have a target to focus on refrigeration or we can see you entering into other segments?

We need to focus on refrigeration. We are closing 40-45 per cent growth as compared to last year. We see refrigeration as a huge potential and India being the hot climate and most of our restaurant, dhaba and bars do not have proper refrigeration equipment. So, we see a huge potential in the Indian market.

What is your expansion plan?

Our expansion is going to be in two ways- we are going to penetrate more and more in B and C cities town. East is becoming a major area for us. We are entering northeast. And, on the product category we are getting more and more into HORECA segment product catering more to restaurants. 

Cargill is an international producer and marketer of food, agricultural, financial and industrial products and services. Cargill’s operations in India started in 1987. Its business comprises refined oils, food ingredients, wheat flour, grain and oilseeds, sugar, cotton, animal feed and trade and structured finance. With market leading consumer brands of edible oils such as NatureFresh, Gemini and Sweekar and Rath and Sunflower Vanaspati brands of hydrogenated fats, the group is also into packaged wheat flour under NatureFresh brand.

You have acquired five brands in Edible Oil and Vanaspati segment. What is the next segment you are looking at?

There is nothing about acquiring any particular segment, we decide to acquire brands according to our requirements, and if it is required, we make that happen. We are into food segment, edible oil floor space and soon will be launching corn milling plant in October in Karnataka.  And if there is something which comes as an opportunity, we will evaluate it and if something is fitting into our business plan and strategy, then we make a pitch for acquiring it.

You are offering a wide range of products. Which one is the most revenue generating?

The two areas in which we are ahead or in the front line with other people in the market are: Sunflower oil, Gemini Sunflower Oil and another is Vanaspathi Oil which is now much refined. The next line which we are pushing harder is, Lenardo Olive Oil, which is for a different category and section in the market. We are trying to make it affordable and also change consumer’s mindset that olive oil can be used for Indian cooking.

As you are opening the Karnataka Corn mill plant in October this year, so what are the services you are going to offer there?

The plant is really about processing Corn, to produce Glucose and Maltodextrin which are both ingredients for the food industry. These are the two products which are going to be produced there.

What are your views on the new import law passed by the government? Do you find it too stringent to follow?

The laws are not that much stringent as for the food industry. There have been cases of inconsistency and differences of opinion for specifications of the product that can be imported or not. So, maintaining harmony and adhering to the government laws for the specifications at origin and specifications at the destination is something that the law stipulates. 

What is the contribution of Cargill in the Indian food market? Can you share the numbers with us?

It’s largely in the edible oil. We supply edible oil to most of the big food companies and I think that as we get into the corn milling space we would be doing great. We are also managing the grain supply chain for a lot of food companies. So, we manage the corn supply chain, wheat supply chain for wheat and flour mills and we also work closely with the dairy and poultry industry through our animal feed and nutrition industry. So, we contribute largely to the Indian market through dairy, animal feeding, edible oil, meat and now, also with the corn processing plant.

We can’t share the numbers as these are very diverse fields and we are not playing for market share; just serving the right customers with the right products.

You are also supplying to the big restaurant chains and hotels. Can you name some of them?

We don’t want to name our clients as that impacts their privacy, but we serve all the big QSR chains, hotel chains, snack food manufacturers and biscuit manufacturers.  

Restaurant business majorly depends on suppliers. A supplier caters to restaurateurs, government laws and regulations and most importantly supplies ingredients used in food and beverage, product like seafood and also primary products with keeping the budget in mind.

Looking for sources like both supplier and restaurant is a tough task. On the same note, Anand Chauhan, Director, Gormetious Foods Pvt Ltd states, “Most of the ingredients used in our products are through online listing platform such as Indiamart, Tradeindia or a simple Google search. Most of the suppliers, vendors, traders and manufacturers now have online presence. We perform online searches and maintain a database of suppliers, vendors, manufacturers etc. We use CRM web-based software to populate and access the data”.

Efficient Approach

Restaurants depend on quality food service as that is the main operational need for a restaurant. The basic purpose for any restaurant should be to follow food safety and guarantee quality. Supplier offers a variety of products to the restaurants and customers to meet their needs and demand. They always try to provide fresh fruits and vegetables packed for restaurant operators with good quality, giving importance for longer shelf-life and better yield of the products.

“We usually look for our products through surveys in the market and market experience of the company in the past. Before launching the product officially, we introduce it at a smaller scale by distributing samples to our distributors and retails stores across the country”, pointed Maneet Pal Singh, Director–Operations, Wiser Foods.

Marketing Strategy

Today, online is the best way to locate anything, even manufacturing products. Also, attending industry events and exhibitions are some of the ways to find best suppliers and check their products and services.

“After distributing the samples to our distributors and other retail stores, we analyze whether the product is being accepted by customers. It is the difference in demand of the customers in various cities that decides the acceptance and supply of certain products.    It is very important to launch the product in the correct market to gain the confidence in eyes of the customers and for the overall growth of the brand” pointed Singh as a marketing strategy.

Similarly, Chauhan says, “We ensure our presence on various online platforms for maximum visibility to our clients. As a part of our marketing strategy, we also cover social media such as Facebook, Twitter and Instagram. This helps us to connect directly with our end customers and also be able to receive a direct feedback about our products and services. Social Media Marketing also plays a very good role in product marketing campaign and helps us perform the analysis such as consumption patterns, preferences, target market areas, target age groups. The ultimate goal is to be noticeable to your customers”.

Thus, without a supplier, it will really be difficult for restaurants to continue serving the best food to customers.