Category — Tourism & Hospitality

Thailand’s Five Star Chicken to Invest $500 Million in India

Charoen Pokphand, a Thailand-based group that owns the Five Star Chicken quick-service chain of restaurants, will invest $500 million in its India division in an effort to double its annual revenue reports GlobalMeatNews. Sanjeev Pant the vice president of India operations explained that 30% of the 500 million will be funded by the company and the rest of it will be raised through banks loans.

Charoen Pokphand hopes to increase the Five Star Chicken restaurants’ current annual revenues of $14 million to $70 million with this investment.

Five Star Chicken

Five Star Chicken

The company is also in the process of doubling its poultry feed capacity to 300,000 tons a month in the next five years. They plan to attain this target by adding new factories in the states of West Bengal, Punjab, Maharashtra and Haryana.

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June 25, 2015   No Comments

India’s Hotels Accelerate Confectionery, Apple, Nut Imports

According to USDA Foreign Agriculture Service, India’s food service sector continues to expand as the number of travelers increase and more consumers dine at restaurants.

“India’s Hotel Restaurant and Institutional Service sector is benefiting from India’s relatively strong economic growth, stable political scenario, foreign investment, rising incomes, high aspiration levels, a young population, and changing consumer consumption patterns,” quotes the report.

India  is seeing a significant transformation in the restaurant sector. Indian consumers are eating out more frequently and younger Indians are more aware of international franchises and foreign foods. With an estimated 100,000 modern, “organized” restaurants (20 or more seats, wait staff, menus) in India, there is plenty of room for growth in the industry.

It is estimated that Indians spend 8 to 10 percent of their food expenditures outside the home in restaurants, cafeterias and other food establishments. Per the 2013 India food service report published by the National Restaurant Association of India, the restaurant sector is valued at $48 billion and is expected to grow to $78 billion in the next five years.

The market for imported foods has also grown. Developments over the past few years indicate a growing number of professional, brand-oriented importers and an increase in the number of modern retail outlets and hotels. Among four and five-star hotels, imported products include wine, other alcoholic beverages, dairy products, meat, seafood, fruits, frozen french fries, sauces, seasonings, and condiments, drink mixes, and ingredients for foreign cuisines such as Italian, Thai, Japanese, Chinese, Mexican, and Spanish.

However, as the food import community shifts its focus from simply trading to professional brand management, distribution and marketing, importers are increasingly looking to represent foreign exporters in India. Key importers are located in cities such as Delhi, Mumbai, Chennai, Kolkata, Cochin and Goa, but tend to be concentrated in Mumbai and Delhi.

Hotels and restaurants, depending on their procurement systems, buy imported food and beverage products from alternate distribution chains based on the type of products and the volume of the consignment:

  • Imported fresh produce is generally bought from wholesalers and distributors.
  • Imported meats, fish, seafood, and dairy products are obtained from dedicated importers and their exclusive distributors who have the cold chain infrastructure to handle such products.
  • Most establishments procure non-perishable items through distributors or, in a few cases, from importers.
  • A few larger hotel and restaurant chains import specialty items through consolidators based in Dubai, Singapore, or Europe.

Wines and liquors are generally procured through importers, mainly private bonded warehouse operators, as most hotels and restaurants import liquor duty-free against their foreign exchange earning license.

The following flow chart gives an overview of the distribution network for imported food for hotel and restaurant sector buyers.

 

Flow Chart of Food and Beverage Food Service Distribution

Flow Chart of Food and Beverage Food Service Distribution

 

Opportunities for foreign food exporters in the sector are improving, and imports of consumer-oriented foods, led by tree nuts and fresh and dried fruits essentially have doubled since 2008 to $3.2 billion.

 

SOME PRODUCT PROSPECTS FOR THE HRI SERVICE SECTOR

 

Description Total Imports CY 2013-Value ($ millions)  Total Imports CY 2013-Quantity (tons)  5–yr. Import growth by value ( %)  Base Tariffs Key Constraints Over Market Development Market Attractiveness for U.S.
Nuts (mainly almonds) 762 210,969 21 In shell Almonds($0.55 per 2 pounds)

Pistachios(10%)

Competition from other suppliers exists but is not substantial High demand and growing retail industry
Confectionery 661 1,315,052 55 Up to 100% Competition from domestic and foreign suppliers Consumer preference for imported products/brands
Fresh Apples 218 194,335 27 50% Competition from domestic and foreign suppliers Seasonal shortages and high prices,diverse fruits among India’s middle income population and growing retail industry
Fruit Juices 36 5,709 gallons 18 30% Competition from domestic and foreign suppliers Increasing health awareness and shortage of quality products
Sauces, Preparations Mixes, Condiments, and Seasonings  12 5,438 -1 30% Strong competition from domestic brands Consumer preference for imported products/brands and growing fast food culture

 

Since the food supply chain system in India still remains fragmented and multi-layered, an investment in supply chain infrastructure and logistics presents a significant opportunity in India’s HRI market because the value of the food service sector continues to increase, the report says.

 

 

 

 

 

 

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May 20, 2015   No Comments

Business Travel to India Skyrockets

The Global Business Travel Association (GBTA) Foundation, announced the results of its third GBTA BTI™ Outlook – India report, sponsored by Visa Inc., which includes an index of business travel spending that tracks market performance over time, reports Hospitalitynet.

India is poised for economic harmony as the region is strongly growing in the short-term and is also in an excellent position for the long-term,” said Michael W. McCormick, GBTA Executive Director and COO. “If India continues on its current growth path, it will be a world leader in business travel for decades to come,” he said.

Key highlights of the report are:
•    India’s total business travel spend to grow 9.8 percent in 2015 and 10.9 percent in 2016
•    India’s GDP grew 7.5 percent during the fourth quarter of 2014 resulting in annual growth of 7.4 percent over 2013
•    The consumer sector has been trending upward for the most part of the past two years
•    Inflation is down from a year-over-year high of more than 11 percent in November 2013; consumer inflation fell to a low of 4.4 percent in 2014.
•    GBTA forecasts domestic business travel to hit double digit growth in 2015 and 2016 growing 10.1 percent and 11.3 percent respectively.
•    GBTA expects international outbound travel spending to grow 7.9 percent in 2015 and 7.3 percent in 2016.
•    Infrastructure presents a challenge for India, but Prime Minister Modi has made the development of the country’s infrastructure a cornerstone of public policy. India has also announced a new tourism policy will be launched in May that will likely focus on various issues including tourism infrastructure.

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May 6, 2015   No Comments

American Tourists Lead in India e-Visa Usage

According to data released by the Tourism Ministry of India, travelers  from the U.S.A. availed India’s Visa-on-Arrival facility the most. India’s electronic travel authorization is currently available for 44 countries, and  March statistics showed that 33 percent of all tourists were from the U.S., followed by 14 percent from Germany, 13 percent from the Russian Federation, while tourists from Australia and the Republic of Korea were 8 percent and 6 percent respectively. India has coined the term e-Visa for this process. Note: The India Expert recommends that business travelers from the United Stated do not enter India on a tourist visa. Business visas are not currently offered under this electronic plan yet.

March recorded a total of 730,000 foreign tourists, an increase of 5.3 percent from the same period last year, and the foreign exchange earnings from tourism showed a rise of 2.9 per cent, reports Economic Times.

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May 6, 2015   No Comments

Golden Gate Bridge Beckons Tourists from India

A report in The Hindu BusinessLine quotes Joe D’Alessandro, president and CEO, San Francisco Travel Association, as saying “India is among the top three growing markets for San Francisco’s tourism industry…along with China and Brazil; and is, therefore, of tremendous importance to us. In 2014, we witnessed 149, 000 Indian travelers visiting the destination.”

Golden Gate Bridge, San Francisco

Golden Gate Bridge, San Francisco

With the new air services operating from India to the U.S. such as Etihad, Emirates, and Turkish Airlines, D’Alessandro estimates a 16 percent growth in the number of Indian arrivals over the next three years.

The average tourist from India  spends $2,580 a visit in San Francisco, and compared with the international average of four nights in the destination, an Indian traveler spends 5.4 nights.

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May 2, 2015   No Comments