A new food laboratory - the first of its kind - is about to set up in business in India, and will be launched at International Foodtec India, (Hyderabad, 1-4 February 2003)
Craft (Centre for Research and Applied Food Technology) will be located within the Biotech Park in Chennai, India, and is being set up at a cost of Rs 48million.
The investment includes a grant of Rs10m from the Ministry of Food Processing, government of India, recognising government backing for a venture that is seen as vital in supporting India's burgeoning food industry. Chennai was chosen because it is a major hub for export/import for the Southern region of India.
The South Indian states are also the top destinations for investments in food processing. Craft has been established with the support of the UK laboratory, Reading Scientific Services (RSSL).
RSSL will provide ongoing analytical assistance to Craft, enabling the company to offer a wide range of services that have proven value in the food industry.
Aruna Rangachar, director of Craft and also a major investor, says, "Craft has set its sights high and is conscious of the needs of its customers.
For this reason, we needed an international partner with in-depth knowledge of the food business, excellent credibility, a strong orientation towards customer service, good business efficiencies, and a strong desire to develop a presence in the Indian market through partnership.
Facilitated by the Trade UK Partners, British Trade Commission, we visited UK in February 2002 and toured the facilities of Central Science Lab, the Campden and Chorleywood and Leatherhead Food RA's and RSSL.
We found RSSL most suitable for Craft's requirements as a strategic and technical partner." Craft is being set up in association with the support of Confederation of Indian Food Trade and Industry (CIFTI), the apex body representing the interests of the food sector in India.
Craft will provide technical services covering testing and analyses, contract research, new product development, sensory evaluation, consultancy and training to the food industry in India and abroad, and aims to be the leading centre of its kind with target revenues of Rs 150 million in the first five years.
Currently, there are no private sector laboratories offering similar range of services exclusively for the food sector in India.
The government owned Central Food Technology Research Institute (CFTRI), a premier teaching institute with excellent facilities is more geared to achieving social objectives and govt.
research.
According to Ms Rangachar, "This is the ideal time for Craft to be born because it will meet the needs of the Indian food industry during a transitionary phase.
Indian food habits are changing.
The country is moving from a high consumption of subsistence foods towards a more varied diet.
Currently, the Indian food industry is primarily composed of the SME sector (fondly called 'emerging corporates' because of their growth rates).
The Indian consumer still has leanings towards their own traditional foods and the SMEs have targeted these customers at regional levels, but are starting to expand.
Quality and stability issues are crucial for improving product reach cross-country and therein lies Craft's crucial role in offering testing and applied research services.
It's also the case that globally, the standards that apply to the food industry are changing, with the demands on quality becoming more stringent.
To compete effectively in international markets, India will need to have effective products, world class manufacturing processes and practices, and consistent quality through rigorous testing, and Craft will assist the industry to reach the required standards."
