Changing tastes and lifestyles are leading to increased demand for packaged and branded food in India, according to a CII-AC Nielsen ORG-MARG report.
"Influenced by the changes in the consumer demand, supply-chain dynamics and marketing interventions, India is emerging as a major world market for retail sales of foods," says the CII-AC Nielsen ORG-MARG report released on Sunday.The report, "Foods and Beverages — Challenges and opportunities in the Indian Market", states that foods sales have contributed a staggering 72 per cent to incremental FMCG (fast moving consumer goods) value in 2004 as compared to 2000.Most of the incremental value "has come. From packaged basics like cooking oils, atta, rice and ghee — indicating an overall upswing in the commodity — to branding movement."

According to the CII report, the most significant change in the marketing environment in recent years has been the advent of modern for-mat stores (MFS). Though MFS accounts for only three per cent of FMCG sales, they have been increasing at a compound annual growth rate (CARG) of 15 per cent in the last five years. Even without major reforms, it is expected that the year 2010 will see a 10 per cent contribution by modern trade to all FMCG. In metros, this figure is expected to be 30 per cent.

The number of traditional retail stores is growing rapidly, and the trend is likely to continue for the next three years. By 2007, the number of stores is likely to be 7.8 mil-lion with bulk of the growth coming from grocers and street corner stores. The CII report points out that one of the biggest opportunities in food in the coming years are likely to be the "Quasi" or quick meal, because there is a greater openness to experimenting."Since the most important role of eating a full meal has already been broken, there is a need for a combination of convenience, hygiene, variety and value ... not all of which are readily available today," the report observes. (TANS)

Pizza Corner India Private Ltd, part of the Lebanese billionaire Fed Mouawad-owned Global Franchise Architects, is on a growth over-drive with plans firmed up for increasing its footprint abroad, registering its presence in North and Western India and taking its pizza outlets to Tier II-III towns in the hinterland of India.

And if that's not enough, after launching its second brand — Coffee World in India — GFA also wants to bring in speciality brands, New York Deli and Cream & Fudge Factory by early 2006.New York Deli is a start-up brand, which offers fresh soups, salads and sandwiches while Cream & Fudge Corporation offers premium ice cream.

Chief operating officer, GFA, said, "Over the years (since 1996), we have consolidated our presence in the South and now GFA is looking at a North India push. We will be launching Pizza Corners in New Delhi and Agra later this week." More stores in Tier II towns such as Hissar, Guntur, Rajahmundry, Vijayawada, Cooimbatore and Salem have have also been planned. They should be up

And running by April 2005, adds Mr. Dutta. GFA was formed with Mr. Mouawad as its chairman after the merger of two partners, GRI Investments and FM Investments. It has invested nearly $9 million in Pizza Corner India.On the company's target, Mr. Dutta said, "We are looking at 70 Pizza Corner outlets by April with an equal focus on the metros in the East and West, prime Among them being Mumbai and Kolkata." Targeting children, IT pros and the mall-multiplex culture, as its growth drivers, Pizza Corner is also confident of making money at the end of this financial year.

"In a business where returns on investment normally take one-and-half years to two years, GFA will be making profits next year," explained Mr. Dutta.

The automobile industry, which has been on a roll in the last five years, has set the pulse racing for the automotive component industry as well presenting it a rewarding opportunity as also a daunting tasks from cheaper competitors like China '"The rapid pace at which the 'industry is growing, it has all the potential to be the next big success story after IT.

In fact, we find that the component supplied by the Indian auto component manufacturers is similar to the Japanese quality," said Atsushi Toyoshima, managing director Toyota Kirloskar Motor. Toyota, which has a manufacturing facility near Bangalore, outsoucres the auto-component. Manufactured here to ASEAN.nations, he said. According to the Automotive Component Manufacturers Association of India, the component industry increased its revenues from $6.7 billion to $8.7 billion, a 30 per cent jump. Exports shot up from $1 billion in 2003-04 to $1.4 billion in 2004-05, ` a 40 per cent growth. The industry is expected to grow to $5 billion by 2010, ACMA said. Industry watchers say that global automobile industry, including Europe and the US, are sourcing component from India and China to cut costs making the industry to adopt best manufacturing practices and adhere to strict delivery schedules. The Indian auto component manufacturers serve major Original Equipment Manufacturers (OEMs) as Tier II and Tier III supplier. As of now, China is the~ "hest destination for auto component manufacturers.

In India, there are three major clusters for these manufacturers, Chennai, Pune and Gurgaon. Chennai itself has over 100 players in the auto-component market thereby giving its sobriquet of being the "Detroit of South Asia".

It supplies component to car manufacturers like Ford, Hyundai, General Motors, and Hondaµ "India's auto-motive component industry is emerging as a major player with India exporting engine and engine parts, electrical parts, suspension and braking parts among other. It is also poised to become a global base for heavy vehicle industry," said Anand Sundareshan, managing director, Schwing Stetter India, a German batching equipment manufacturing firm based in Tamil Nadu.