AUGUST - 2021

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AUGUST - 2021 Food Drink & Innovations

52 sustainability

KHS Group publishes its fourth voluntary
sustainability report

containers, this is a significant figure, states
Acker.

Broad spectrum of expansion and
modernization measures

Furthermore, important aspects such as
ergonomics, product safety and durability
are highlighted by the report. KHS’ broad
spectrum of expansion and modernization
measures newly devised and developed
further in the relevant period is also show-
cased. The aim is to create products that are
extremely flexible and thus future-proof. In
this respect, digital services in particular are
of increasing importance.

The new KHS sustainability report guidelines. It’s thus all the more important In the field of packaging design the
has been published under the title that we make the same high demand of Dortmund company also illustrates its many
of Global responsibility – acting re- ourselves and issue statements and key successes in relation to consumer protection,
liably and with foresight. In it the systems figures that can be compared to others,” health and environmental friendliness. To-
supplier presents its activities and results Acker believes. gether with the ALPLA Group, for example,
for 2019 and 2020 regarding strategy and KHS has manufactured a returnable 1.0-liter
product responsibility, corporate envir- KHS helps customers implement their PET bottle that thanks to its low weight
onmental protection and social issues. climate goals of 55 grams and high recyclate content
Furthermore, KHS outlines its position on of up to 35% has a positive impact on its
future challenges and measures in the con- KHS’ strategic fields of activity have thus overall ecobalance. This system is primarily
text of protection of the climate, digitaliza- been dealt with in greater detail and further aimed at mineral water bottling plants but
tion and demographic change. key figures identified. In four separate is equally suitable for every other beverage
chapters on strategy and governance, segment.
“Lots of consumers expect it and more product responsibility, operational ecology
and more customers and stakeholders are and social activities the company’s eco- Consistent savings in energy and resources
demanding it: the protection of the climate nomic, social and ecological approaches to The issues KHS is helping its customers
is an issue that’s also continuously growing management key to standardized reports with are reflected in the company’s own
in importance for us, too,” says Kai Acker, are presented. Here, one of the questions corporate activities. Among various other
CEO of the KHS Group. “We explore all addressed is how the beverage industry can actions, the publication outlines the com-
possible ways and means of cutting emis- be given even stronger, more specific sup- pany’s in-house measures and targets as an
sions and saving on resources in the course port in the implementation of its respective important contribution to the protection of
of our own value creation process and that climate goals in the future. the environment. The KHS production sites
of our customers.” The Dortmund company in Germany, for instance, have been using
has published a sustainability report on a “Our lines and packaging systems are a certified green electricity from renew-
voluntary basis every two years since 2015. major component in the customer’s value able sources since 2016. This enabled the
The entire content is structured based on chain,” Acker emphasizes. The report lists systems supplier to save a total of 10,868
GRI standards, the sustainable development numerous new and further developments metric tons of CO2 emissions in 2019 and
goals of the United Nations and legal re- designed to save on resources; in this way, 2020. “We aim to continue our efforts in
porting obligations pursuant to CSR-RUG, KHS machines considerably help to reduce this respect. As a global company we focus
among others. the carbon footprint. One example of this is on these issues, for example in Brazil and
the InnoPET Blomax Series V stretch blow the USA,” Acker explains. For the first time
“The majority of the industry operates on molder that cuts energy consumption by the sustainability report contains a section
a global scale and provides information up to 40% and by making effective use of dedicated to the company’s production sites
on its achievements as regards sustainab- materials also saves up to 10% in PET, thus outside Germany. KHS India, to name one
ility according to recognized international conserving valuable resources. In view example, already runs a number of extens-
of the growing trend towards ever lighter ive sustainability programs. These include
countless initiatives that specifically help to
make the company more sustainable above
and beyond the issues of recycling, con-
serving energy and the circular economy.

Food Drink & Innovations AUGUST - 2021 www.fooddrinkinnovations.com

sustainability 53

Hilton India teams up with Wakao Foods to bring
Innovations in Sustainable Food Concepts

Inspired by the growing appetite among With the joint vision of placing jackfruit the humble jackfruit, which is considered
consumers for sustainable and naturally as a sustainably sourced plant-based meat a superfood but needs to be more relevant
available alternatives to animal-based substitute, the collaboration between Hilton across the cuisine culture of the country.”
meat, Hilton India, in partnership with and Wakao Foods aims at supporting local
Wakao Foods, has put up a sustainable producers and products, as well as bringing “It is a great honor to be associated with an
food showcase for guests. The exciting plant-based alternatives prominently to the international brand like the Hilton, so early
food festival - ‘The Wakao Fest,’ aims at food and beverage scene in India. A sus- in our life cycle. These kinds of platforms
offering an unforgettable dining experience tainable crop, sourced locally, which does and collaborations give brands and start-
through an exquisite menu with jackfruit not need irrigation, pesticides/herbicides, ups like ours a fillip to take our efforts to
as the core ingredient. The innovative food Jackfruit can be intergrown with other crops more people and educate the consumer
menu will be available across dining out- to create a regenerative ecosystem. as well. The collaboration brings Hilton’s
lets at Hilton properties in the country. culinary expertise to one of our most loved
Sairaj Dhond, Founder & CEO Wakao indigenous products - Jackfruit,” he added.
Commenting on the association, Prashant Foods said, “As the world looks at more
Kulkarni, Director F&B, India-Hilton said, plant-based alternatives, which are healthier The artisanal menu at The Wakao Fest
“At Hilton F&B, we wanted to keep innov- and more sustainable options, there is a has been curated by the culinary experts
ation, sustainability, and deliciousness at the growing interest in meatless meals off at Hilton to offer multiple cuisines and
front and center of the creative process, and late. The versatile and indigenously grown gourmet delights comprising starters, main
we challenged our Chefs to take Jackfruit, jackfruit is bursting onto the scene and course and desserts, by leveraging the
the humblest of ingredients, and come up finding itself being used more often. The versatility and richly layered flavours and
with a menu which will excite and intrigue pop-up therefore explores the versatility of textures of the Jackfruit. Guests can sample
the palate. With Wakao we have been able dishes like Faux Pao, The Wakao Krapow,
to do just that. Wakao is an expression that Parmesan Polenta, and “Bar of Bliss” and
perfectly captures the flavourful twist of our much more during this festival across the
dishes as well as the guests’ reaction when FnB outlets at @SAIPE at Hilton Goa, Cori-
they dine at any of our Hilton outlets.” ander Kitchen at Conrad Pune, The Amber
Kitchen at DoubleTree by Hilton Jaipur
“The shift towards plant-based alternatives Amer,Terazzo at Hilton Shillim Estate
is the most dominant trend of 2021 triggered Retreat & Spa to name a few. The festival
by the growing consciousness about mindful will be celebrated from August to Novem-
and healthy eating. The Wakao Fest ex- ber 2021 across Delhi NCR, Mumbai, Pune,
plores unique dishes that are sustainable to Ahmedabad, Goa, Bangalore, Chennai,
serve and bring guest delight,” he added. Lucknow, Agra, Jaipur and Trivandrum.

Mondi & Unilever serve up Aluminium-free Paper-based Packaging

Unilever, together with Mondi, a with paper content of 85% and an ultra-thin fore scaling up. This collaborative method
global leader in packaging and functional plastic layer that seals the goes to the heart of Mondi’s EcoSolutions
paper, have developed a new high packaging, and provides barrier protection customer-centric approach of working
barrier paper-based packaging material for the food. Mondi and Unilever’s R&D closely with its customers to ensure that the
for Unilever’s Colman’s dry Meal Maker teams identified this layer as the minimum best possible and most sustainable product
and Sauces range by reducing plastic, acceptable protection needed to ensure a is created while meeting the customer’s
increasing paper content, and consequently long shelf life while maintaining high qual- requirements, as well as that of its end user
ensuring recyclability in the existing UK ity and reducing food waste. Mondi and and the environment.
paper waste stream. Unilever closely collaborated throughout
the entire development process, including Unilever focuses on the principle of a circu-
By replacing the previous unrecyclable mastering the challenge of limited access lar economy and the importance of creating
multi-material laminate with recyclable to production facilities during the Covid-19 value within it. Two of their key targets are
paper packaging, Mondi supports Unilever pandemic. Starting with a proof of concept, to transform the entire packaging portfolio
in its sustainability targets. The aluminium, followed by extensive line trials at both into technically recyclable, reusable or bio-
as well as all unnecessary plastic layers Mondi and Unilever’s R&D pilot plants degradable solutions as well as to halve the
of the previous material, were eliminated. provided the flexibility to quickly prototype amount of plastic used by 2025, which this
This resulted in a new packaging solution and test the unique packaging material be- new packaging solution addresses.

www.fooddrinkinnovations.com AUGUST - 2021 Food Drink & Innovations

54 SAFETY/HYGIENE & REGULATIONS

SAFETY / HYGIENE
/REGULATIONS/
Government
Policies

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SAFETY/HYGIENE & REGULATIONS 55

FSSAI notified Amended norms for
besan, maize starch, yellow pea
powder, types of peppers

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The FSSAI has notified the third pea powder under the regulations related
amendment regulations related to to breakfast cereals. The description says
food products standards and food that yellow pea powder means the product
additives that include standards for besan, obtained by grinding dehusked yellow pea
maize starch, yellow pea powder, along (Pisumsativum L.) and shall not contain
with white and green pepper. any added colouring matter or any other
foreign ingredient.
The regulations have been called, Food
Safety and Standards (Food Products The yellow pea powder should conform to
Standards and Food Additives) Third the standards prescribed by the regulations
Amendment Regulations, 2021. Under including not more than 12% moisture,
these regulations, standards were updated 22% protein, 0.3% acid insoluble ash,
under the ‘cereals and cereal products’ 0.18% alcoholic acidity and 100 mg/kg
category. uric acid.

According to the amended rules, besan Besides, the regulations also updated the GET OUR
means the product obtained by grinding standards for black pepper or kali mirch MEDIA
dehusked bengal gram (Cicerarietinum). under salt, spices, condiments and related
It shall not contain any added colouring products. INFORMATION
matter. The product shall be free from KIT- 2021
abnormal flavours, odours, living insects, Under this product category, the FSSAI
filth (impurities of animal origins, includ- made differentiation among black pepper,
ing dead insects) and conform with the white pepper and green pepper. Black and
prescribed standards including moisture green pepper shall have a diameter of min-
not more than 12% by mass, not more than imum 2.0 mm, while white pepper shall
0.3% ash insoluble in dilute hydrochloric have a diameter of minimum 1.8mm and
acid, not more than 0.18% alcoholic acidity these peppers can be of whole, cracked or
(as H2SO4) with 90 per cent alcohol powder form. These peppers need to con-
by mass, not less than 20.0% protein form to the updated standards prescribed in
(Nx6.25), % by mass (on dry basis) and not the regulations.
more than 100mg/kg uric acid.
Also, the product covered under these
Similarly, the standards of maize starch standards shall be labelled in accordance
were defined under the amendment with the Food Safety and Standards (La-
regulations. According to the amended belling and Display) Regulations, 2020. In
regulations, the starch content should not addition, the forms of the product shall also
be less than 98% on a dry basis having pH- be mentioned on the label. The name of
value from 4.5-7. Further, the amendment the product shall be ?black pepper (pepper
regulations include standards for yellow corn), white pepper or green pepper.

www.fooddrinkinnovations.com AUGUST - 2021 Food Drink & Innovations

56 SAFETY/HYGIENE & REGULATIONS

APEDA to boost unique agricultural produce
from Ladakh

use of chemicals in the farming, during
the interactions with Ladakh officials,
Apeda has urged non-use of chemicals and
fertilizers at the earliest and introduction
of traceability systems to help in brand-
ing Ladakhi products. “The focus of this
collaborations is to ensure that Ladakh
achieves the goal of becoming an organic
region by 2025,” commerce ministry said.

In a bid to boost exports of agricultural tion of the traceability system, capa- Officials of Ladakh under the Mission Or-
produce from Ladakh and enhance city-building of farmers and value addition ganic Development Initiative have formed
farmers’ incomes, the Agricultural and of products,” commerce ministry said in a an organic study group for the drafting
Processed Food Products Export Develop- statement. of ‘organic’ certification documents and
ment Authority, or Apeda, has decided to implementation of certification process in
promote and brand organic items from the Apeda would provide technical assistance phases. The technological interventions
region. for building the capacity of stakeholder introduced by DIHAR to the Ladakh ad-
including entrepreneurs, officials, farm- ministration is helping farmers grow leafy
The initiative will be executed in associ- ers, branding and marketing of Ladakhi vegetables at -25 degrees.
ation with officials of the Union territory as products and making Ladakh an ‘organic’
well as the Defence Institute of High-Alti- region. Apeda would provide special “Apeda would be continuously working
tude Research (DIHAR) “Following a assistance for branding and promotion of with officials from agriculture and horti-
series of interactions held recently at Ladakhi products, especially sea buckthorn culture departments of Leh and Ladakh
Ladakh, identified areas of work include which is rich in Vitamin C, omega and districts, Sher-e-Kashmir University of
enhancement of production of fruits with other essential nutrients. Agricultural Sciences and Technology of
medicinal values including sea buckthorn, Jammu, DIHAR, and entrepreneurs for
apricot and organic produce and introduc- Emphasizing the need for minimal or zero comprehensive development of agriculture
in Ladakh,” the commerce ministry said.

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SAFETY/HYGIENE & REGULATIONS 57

FSSAI mulling using next-gen technology tools to
ensure food safety, quality

Food safety regulator FSSAI said it is added. With regard to recycled-PET and second major thrust area of FSSAI, Singhal
exploring the possibility of using next recycled plastics for food products, Singhal said, is to strengthen the food safety eco-
generation technological tools like said FSSAI has promulgated regulations to system at the state level. FSSAI has started
blockchain and machine learning to ensure allow alternate packaging materials. providing technical and financial assistance
food safety and quality. to states and union territories by creation
“However, the authority is also aware of of infrastructure and testing equipment for
Such tools assume importance as the current the limitations. These materials are not mobilising resources to carry out manual
pandemic situation has negatively affected available in volumes that are desired by the special camps inspections, awareness drives
many aspects of routine regulatory inspec- industry,” he said, and urged the industry, etc, he said.
tions, monitoring and surveillance at both academia and research bodies to explore
the domestic level and border points, Food ways of making these materials available in FSSAI has signed memorandums of
Safety and Standards Authority of India sufficient volumes at reasonable prices. understanding with states. Last year, MoUs
(FSSAI) CEO Arun Singhal said. These reg- For FSSAI, Singhal said the major thrust were signed with 23 states, and a substantial
ulatory inspections are essential for ensuring areas are simplification of the regulatory re- amount of funds were released to states.
food safety and quality for people, he added. gime, IT platforms, and registering as many That process is continuing this year as well,
food businesses as possible. Currently in he added. The third major trust area is to
Addressing a virtual event organised by India, close to 5 million food businesses are strengthen the food testing capabilities in the
industry chamber CII, Singhal urged the registered and this outreach must continue, country. As of now, there are about 252 food
industry and researchers to come up with he said. testing laboratories notified by FSSAI and
simple tools or interventions which regu- all of them are accredited by the National
lators can use. For instance, a technique to “Many are small businesses, where some Accreditation Board for Testing and Calib-
detect the ratio of materials in a blend, a tool intervention is required in terms of capacity ration Laboratories (NABL), he said. In the
to prevent food fraud, real-time safety mon- building. So that is a major thrust area. And past three years, FSSAI has released about
itoring through affordable and rapid testing, in this direction we’’re already ensured Rs 300 crore to various state food testing
among others, he said. the food safety training and certification laboratories for strengthening, purchasing
program,” he said. equipment, and setting up microbiological
“FSSAI is exploring the possibilities of us- testing facilities.
ing technological tools like blockchain, ma- FSSAI has already trained about 500,000
chine learning, etc in obtaining traceability food safety supervisors in various food “Microbiological infections are very import-
information,” Singhal said. Next generation businesses. In addition, during the pan- ant. So we are planning to strengthen the
tools like genome sequencing and innova- demic, about 2.6 lakh persons were trained microbiological testing facilities in labs,”
tions in chemical and molecular analysis can on safe food and hygiene practices required he added.
be very useful in the area of food authen- for COVID-19, he added. That apart,
ticity and integrity, he pointed out. Also, the FSSAI is gradually moving towards
Internet of Things (IoT) has taken a big periodic risk-based inspections, third-party
leap forward and can be used for mounting audits, focus checks and interventions to
production and processing operations, he ensure safety and quality of products. The

Government finalising India Digital Ecosystem of Agriculture

Government is in the process of been floated for comments from the technologies to contribute effectively
finalising ‘India Digital Eco- general public not only through depart- in creating a better Ecosystem for
system of Agriculture (IDEA)’ ment’s website but also through emails Agriculture in India. This Ecosystem
which will lay down a framework for especially to subject matter specialists, shall help the Government in effective
Agristack. This Ecosystem shall help Agro-Industry, Farmers, Farmer Produ- planning towards increasing the income
the Government in effective planning cer Organisations (FPOs). of farmers in particular and improving
towards increasing the income of the efficiency of the Agriculture sector
farmers in particular and improving the The IDEA would help in laying down as a whole. As a first step in this direc-
efficiency of the Agriculture sector as the architecture for the Agri-stack in tion Government has already initiated
a whole. Accordingly, a Task Force has the country and that would serve as a building federated farmers’ database
been constituted and in furtherance, a foundation to build innovative agri-fo- that would serve as the core of the
Concept Paper on IDEA has already cused solutions leveraging emerging envisaged Agristack.

www.fooddrinkinnovations.com AUGUST - 2021 Food Drink & Innovations

58 supply chain management

Centre to set up/upgrade 2 lakh micro food
processing enterprises by 2025 with an outlay of
Rs. 10,000 cr:, Patel

frastructure for Agro-Processing Clusters,
(v) Creation of Backward & Forward
linkages, (vi) Food Safety and Quality
Assurance Infrastructure, (vii) Human
Resource and Institutions, (viii) Operation
Greens. Under component schemes of
PMKSY, MoFPI provides mostly credit
linked financial assistance (capital subsidy)
in the form of grants-in-aid to entrepren-
eurs for setting up of food processing /
preservation industries.

Union Minister of State for Food for these enterprises. So far, Ministry has approved 41 Mega
Processing Industries Shri Prahlad food Parks, 353 Cold Chain projects, 63
Singh Patel said that as part of the Moreover, the Ministry of Food Processing Agro Processing Clusters, 292 Food Pro-
Aatmanirbhar Bharat Initiative, MoFPI Industries (MoFPI) has been implementing cessing Units, 63 Creation of Backward &
is implementing a Centrally Sponsored Central Sector Umbrella Scheme - Pradhan Forward Linkages Projects & 6 Operation
Schemefor setting up/upgradation of 2 MantriKisan SAMPADA Yojana (PMKSY) Green projects across the country under
lakh micro food processing enterprises. since 2016-17 for overall growth and corresponding component schemes of
The enterprises can be set up or upgraded development of food processing sector, PMKSY.
through credit linked subsidy during five including processing of agro- products and
years from 2020-21 to 2024-25 with an thus increasing the income of the farmers. These sanctioned projects are estimated to
outlay of Rs. 10,000 crores. In a written benefit about 34 lakh farmers on comple-
reply to a question in the Rajya Sabha, The component schemes of PMKSY are tion. In the evaluation study of Integrated
Shri Patel said, the Central Scheme-PM - (i) Mega Food Park, (ii) Integrated Cold Cold Chain and Value Addition Infrastruc-
Formalisation of Micro Food Processing Chain and Value Addition Infrastructure, ture Scheme conducted by M/s NABARD
Enterprises Scheme (PMFME) provides (iii) Creation /Expansion of Food Pro- Consultancy Limited (NABCONS) in Year
financial, technical and business support cessing & Preservation Capacities, (iv) In- 2020, it has been estimated that captive
projects under the scheme have resulted
in increase in farm-gate prices by 12.38
% and each project is estimated to benefit
more than 9500 farmers.

There is No-Acceptance of GM Food Plea until New
Regulations are Made: FSSAI

The Food Safety and Standards were notified in 2017 for approval of “FSSAI is in the process of developing
Authority of India has announced non-specified food including novel foods. the regulations/guidelines for the safety
not to accept Genetically Modified assessment of such foods. Considering
(GM) food approval requests under the In this regard, an advisory has issued the same, till GM regulations/guidelines
Non-Specified Food Regulations until by the food regulator saying that in the were notified, FSSAI has decided that no
there’s a specific regulations for GM food absence of such guidelines or regulations applications related to GM or GM derived
are prepared. for GM or GM derived material, the material shall be accepted under the NSF
food industries and businesses try to get regulations,” as per the notice by FSSAI.
FBO’s dealing in GM and GMO derived permission under the FSS (Approval for
food has been asked by the food regulat- Non Specified Food and Food Ingredi- Furthermore, the Notice of FSSAI also
ors to reach FSSAI only after notification ents) Regulations 2017, for the motive mentioned that such firms willing to seek
of the GM Regulations. of registration and licensing. And such approval for GM or GM-derived food can
applications shall not be entertained by directly approach FSSAI only after GM
The Non-Specified Food Regulations the food regulator. regulations are notified.

Food Drink & Innovations AUGUST - 2021 www.fooddrinkinnovations.com

supply chain management 59

www.fooddrinkinnovations.com JJUUNLYE - 2021 Food Drink & Innovations

60 supply chain management

Cold Chain Packaging Market to Hit USD 43.40
Billion by 2028

to maintain the efficiency of the drugs
and vaccines. For instance, a report by
Pharmaceutical Commerce’s annual Bio-
pharma Cold Chain Sourcebook states that
biopharma companies spent around USD
15 billion in cold chain logistics in the year
2019. This spending is expected to increase
at an impressive rate in the upcoming
years. Additionally, the COVID -19
vaccine drive is also positively promoting
market growth globally.

The global cold chain packaging consumption. This in turn affected the cold On the contrary, in order to meet specific
market size is expected to gain chain logistics, as milk is one of the key designing & regulations, technically skilled
momentum by reaching USD 43.40 materials of cold chain logistics. manpower & advanced raw material is
billion by 2028 while exhibiting a CAGR required. This all comes with high cost,
of 10.8% between 2021 to 2028. In its re- Market Segmentation: which results in higher capital investment
port titled “Cold Chain Packaging Market, & increased packaging cost. Besides the
2021-2028.”, Fortune Business Insights Based on product type, the market for cold complex regulatory issues are also affect-
mentions that the market stood at USD chain packaging is divided into EPS con- ing the market negatively.
19.36 billion in 2020. tainers, PUR containers, pallet shippers,
vacuum insulated panels, and others. Based Regional Insights
The demand for complex biological-based on the product type, the pallet shippers
medicines, vaccines, hormones, and segment held a market share of about 36.40 Europe to Dominate Owing to Varying
complex proteins has increased due to % in 2020. The segment is expected to Temperature Profile
the rising prevalence of chronic diseases experience considerable growth backed
in recent years. Besides their storage, the by its large shipping capacity systems that Europe is expected to hold the largest
shipments require cold chain refinements are effective as well as reusable. Addition- cold chain packaging market share during
for transportation purposes at optimum ally, these provide universal temperature the forecast period. This is ascribable to
temperature. Therefore, the demand for the protection coverage, thereby giving it an the various temperature profile changes
product is expected to surge in the forth- advantage over the other cold packaging around the region. Thus, the region re-
coming years. solutions. quires advanced temperature monitoring
and packaging solutions. Additionally,
COVID-19 Impact By its application the market is divided Germany imports large quantities of fruits,
into, Finally, based on region, the market vegetables, meat, fish, and milk products in
The pandemic has put the pharma and food is categorized into Europe, North Amer- chilled and frozen forms. It is regarded as
industry under immense pressure. These ica, Asia-Pacific, Latin America, and the the leader in the food and beverage market
sectors were put under essential services by Middle East and Africa. in Europe, which strongly supports the
the governments. Thus, the role of the cold growth of the cold packaging business in
supply chain became important to maintain Driving Factor the region. The regional market stood at
their quality. However, the market suffered USD 6.40 in 2020.
a moderate loss due to cross-border Increasing Trade of Medicinal Drugs to
restrictions and disruptive logistic services Propel Market Growth Asia Pacific is expected to showcase a sig-
during the lockdown. For instance, a report nificant CAGR in the upcoming years. This
published by the United States Department The increasing trade of medicines, vac- is owing to the rapid development of cold
of Agriculture GAIN report, in 2020, states cines, and other medical drugs is driving storage projects, developing infrastructure,
that leading milk producers in Europe such the cold chain packaging market growth. and rising disposable incomes of people in
as Germany and France were negatively Pharmaceutical companies are invest- the region. In addition, China, Japan, and
impacted in terms of production as well as ing heavily in cold packaging solutions South Korea are known to have well-estab-
lished supply chains, as well as renowned
companies that provide a wide range of
cold packaging products. This is promoting
their regional market growth.

Fortune Business Insights™

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supply chain management 61

Warehouse leasing might touch 100 mn sq-ft. over
next three years: CBRE Report

CBRE South Asia has announced the dian I&W sector has surged, making it one 40% of the total warehouse leasing in the
findings of its ‘India’s Industrial of the key growth drivers of the real estate post-GST period (2018-20), followed by
& Warehousing Sector: Tenacious industry. With strong government support occupiers from the e-commerce (21%) and
Amidst the Turning Tide’ report. Against to ease investment norms through attract- engineering and manufacturing (11%) sec-
the backdrop of robust growth of manufac- ive tax sops and policy initiatives, we can tors. Occupiers across these sectors have
turing, e-commerce and third-party logist- expect increased interest from domestic started to increasingly prefer large-sized
ics (3PL) sectors, the report highlights how and global manufacturers.” spaces to consolidate operations, espe-
Industrial and Warehousing (I&W) activity cially post the implementation of the GST.
has gained momentum over the past few Even before covid-19, the manufacturing Backed by increasing online retail demand
years in India. sector was witnessing a visible shift: away amidst the pandemic, e-commerce and
from the previously established destina- 3PL players are further expected to lead
The report delves into the dynamics of the tions towards alternative hubs. As a result, warehouse leasing over the next few years,
current manufacturing ecosystem in India India has increasingly become an active the report added.
and its improving prospects as an alternat- player in the global manufacturing supply
ive supply chain destination on account of chain, on the back of improved domestic Following a large-scale expansion in tier
elements such as favorable demographics, capabilities in recent years. This has also I cities, occupiers have also started to
relatively low labor costs, and continued been supported by robust government initi- expand their footprint in tier II and III loca-
thrust on infrastructure improvement and atives such as Make in India, Aatmanirbhar tions due to improvements in infrastructure
policy reforms. As a result, the business Bharat, Building India Campaign (through and growth of online retail in these areas.
climate in the country has vastly improved, the National Infrastructure Pipeline) as Warehouse supply addition over the past
as is evident from the continued jump in well as policies such as the Production five years also crossed 75 million sq. ft. in
India’s Ease of Doing Business rankings. Linked Incentive Scheme, aimed at attract- the country.
This, in turn, has had a positive impact on ing investments across a diverse mix of
the manufacturing sector of the country, industries such as electronics, automotive, In the current scenario, there is a rising
which has attracted over $121 billion in pharmaceuticals, textiles and food pro- demand for an agile supply chain that aims
FDI inflows over the past six years. cessing among others. to enable end-to-end control and move
from risk mitigation to risk management.
Anshuman Magazine, chairman, India & The report also described the current As manufacturers focus on increasing
South-East Asia, Middle East & Africa, warehouse leasing scenario in the country. capex towards implementing tech in their
CBRE, said, “Over the past decade, India The warehousing space take-up over the facility / supply chain, technological ad-
has consistently aimed at diversifying from past five years has crossed 100 million sq. vancements such as Artificial Intelligence
a services-based economy to becoming ft. cumulatively, with a historic leasing (AI), Blockchain, Big Data and the Internet
an alternate manufacturing destination in peak of 32 million sq. ft. reached in 2019. of Things (IoT) will ensure that the sector
APAC. As a result, the demand in the In- 3PL players accounted for more than stays resilient in the times to come.

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