Friday, May 29, 2009

Event Management at its peak

Thinking about event management??? Think about the biggest event on the planet earth. It’s nowhere else in the part of the world.... but it’s in India.

 

It is THE KUMBH MELA.

 

Here are some of the details which will tell you why it is the biggest event.

·         Last “Maha Kumbh” held at “Prayag” (near Allahabad – Sangam of three rivers) in 2001 and next one will happen in 2013

·         The event runs for 6 weeks

·         The management has to build a temporary city around the place of the Sangam and that is around 17 sq km in area. This is happened to be the biggest temporary city in the world. (Not even Mecca-stay is bigger than this). Here all the area is covered with tents, mobile dispensaries, police stations and kitchens.

·         Kitchens are running for 24x7 for around 2 million people for a day and they provide 2 time meal for free.

·         Around 3 new temporary bridges are made for the devotees and administration

·         12 new temporary hospitals were setup and around 80,000 people had to visit them

·         Around 7 crore people visited last time, and in the peak time 20,000 people are added to the city every hour

·         Around 8000 policemen, 5000 para military force, 4000 other guards and around 18000 sweepers were working during that time

·         There is a high risk of epidemic, stampede and military attack during the event.

·         During the event people are making so much of pollution, that water of river Ganga are having 1000 times more bacteria than which is safe to drink. But people here were taking this water as the divine Amrit

·         Some of the unexpected event like, attempt of mass suicide by Naga Bawas in protest of dirty water of river Ganga.

·         Around 30,000 children and hundreds of old aged people are lost during the event and amazingly only around 250 are only lost forever.

Now think of handling this event!! There are only 3 people who are responsible for this event.

·         SP – for security

·         District Magistrate – for land and law related things

·         District IAS Officer – for administration

So what do you think about managing this event?

Something about Food-Processing

  • India’s food-processing sector, though still developing, contributes 14% to the manufacturing GDP (5.5% of aggregate GDP), produces goods worth Rs. 2.8 trillion ($64 billion), and employs 13 million people
  • According to the Ministry of Food-processing Industries (MFPI), the food-processing industry over the last decade has grown at an average annual rate of 7.1%
  • The growth is projected at around 7.3 percent per annum over the next five years.  Of the estimated total food sales of rupees 8.6 trillion ($198 billion) in 2003/04, processed food consumption was valued at Rs. 5.3 trillion ($122 billion), with the share of value-added foods (juice, jams, pickles, cheese, butter, ghee, processed meat, confectionary and chocolate, alcoholic beverages, aerated beverages, malted beverages, food services, etc.) estimated at 37 percent.
  • Food accounts for about 49% of the consumers’ total expenditure
  • Some of the multinational food flavour, ingredient, and machinery companies in India; are IFF, Danisco, Chr. Hansen, AB MAURI, The Solae Company, and Fine Organics.
  • India annually imports vegetable oils valued at over $2.6 billion and pulses valued at $560 million. 
  • Imports of food ingredients were valued at $170 million in 2003/04, and include mostly spices and condiments, dairy products, cocoa products, fish and fish products, fruit juices, and other ingredients (yeasts, sauces, soft drink concentrates, flavouring materials, soy protein concentrates and isolates, etc.).
  • Unorganized, small players account for more than 70 percent of the industry’s output in volume and 50 percent in value terms.
  • The government’s policy of reserving the food-processing sector for small-scale units, effective until 1991, discouraged large-scale domestic and foreign direct investment in the food-processing sector.
  • Food Processing Industry:

o    Processed fruits and vegetables: Market Size, Organized: 17,200 and Unorganized: 18,450 Million Rs.

o    Dairy Products: Market Size, Organized: 255,000 and Unorganized: 906,000 Million Rs.

o    Cooking Oil: Total annual sales around: 50 Billion Rs. and growth of 7-8 percent. Branded oil count 9% at volume and 17% in value

o    Non-alcoholic beverages: India is the largest tea producing country with 860,000 tons of manufacturing and most of the part is going for the export.

o    With annual 300,000 tons of production of coffee, India is a competitive exporter of it.

o    Alcoholic beverages: Whisky, mostly low-priced, accounts for about 55 percent of the Indian spirit consumption, followed by rum, brandy, and vodka.

o    With the take-over of Shaw Wallace’s liquor business by the UB Group, the latter has emerged as the world’s second largest liquor producer. 

o    Confectionary: Size around Rs. 26 billion.

o    Sugar confectionary accounts for 61 percent of this market, with the balance being chocolates, mints, and gums

o    Market growth in last 5 years: 6%, gums: more than 10%

o    Milling and baking:

o    75% of India’s wheat goes in for milled in to wheat flour, mostly in small chakkis (un organized sector)

o    Branded atta produce around 1 million ton flour every year growing  7-9 % year

o    Grain based snacks is having share around Rs. 29 billion in which 15% is at organized sector

 

Sources:

Food-processing Policy 2005, Ministry of Food-processing Industries, GOI; http://mofpi.nic.in/fpipolicy.htm

USDA Foreign Agricultural Service, GAIN Report.

GAIN – Global Agriculture Information Network

Number: IN5031 

 

The most consumed biscuit in India

I tried finding which is the most consumed biscuit product in India; I searched various part of Internet, asked people from various part of the world (knowing Indian market), and from most of them I got one answer.

Parle-G is the most sold biscuit product in India.

While finding the question I found following interesting part about biscuit industry of India.

Something about Biscuits Industry

  • India is the third largest manufacturer of Biscuits in World after US and China.
  • Per capita consumption of biscuits in various countries are as below:
    • US, UK and European countries : more than 10 kg
    • South east Asian countries like Singapore, Hong Kong, Thailand, Indonesia : above 4.25 kg
    • Japan : 7.5 kg
    • India : 2.1 kg
    • China : 1.9 kg
  • Biscuit industry has the total market share of Rs. 7250 crores in which Rs. 4350 crores are from organized sector and around Rs. 2900 crores are from un-organized sector. (source 2001-2002 census)
  • From total market share of biscuits industry, 60% share is there with the organized sector.
  • In the organized sector, there are 2 large scale manufacturers, 50 medium scale and around 2500 small scale manufacturers
  • In the un-organized sector, there are approximately 30,000 manufacturing units – bakeries.
  • The production of the organized sector counted in 2001-2002 census is 1.30 million tonnes.
  • If the growth of the industry is to show then, till 1999-2000 the growth rate was around 10-12%. But after the increase in the excise duty (100% hike) it faced 3.5% decline in 2000-2001. After that the growth comes to 2-3% in next two years.
  • According to the NCAER Study, biscuit is predominantly consumed by people from the lower strata of society, particularly children in both rural and urban areas with an average monthly income of Rs. 750.00.
  • From the census of 2000-2001, the biscuits market was divided in the following categories:
  • Glucose 44%
    Marie 13%
    Cream 10%
    Crackers 13%
    Milk 12%
    Others 8%.
  • The consumption of the biscuits in India according to the regions is as below:
  • Northern States: 28%
    Southern States: 24%
    Western States: 25%
     Eastern States: 23%
  • Britannia – which is a part of Wadia group – is the biggest and the oldest among the current giants in India which manufactures biscuits.
  • It started in 1892, becomes the most trusted brand in 2002, No 1 food brand in 2001, and become a part of top 300 small companies of world by Forbes in 2000.
  • The production of biscuits was around 100,000 tonnes in 1994 which becomes 300,000 tonnes in 10 years.
  • Parle was started in 1929 in Mumbai. Initially they were selling sugar confectionaries only. But from 1939 they started production of biscuits. Parle-G and Monaco were the first brands launched.
  • Today Parle shares 40% share of the total biscuits market and 15% share of confectionaries.

 

Sources:

Federation of Biscuit Manufacturer of India, Britannia and Parle Products sites and other surveys and reports

Something about soft-drinks

  • In March’01 only total 6540 million bottles were marketed in India (India census 2000-2001). So think about now.
  • Growth rate of the soft drink market is around 7-8%
  • Summer, which stays for around 70-75 days in India, contributes more than 50% of yearly sales of soft-drinks.
  • Around 60% of total non-alcoholic drinks are only cola based and around 36% is non-cola based carbonated drinks (in combined called soft drinks), which makes around 96% market share in the drinks and around 4% takes non carbonated drinks (like, mango based mazza and slice).
  • There are only two major players in India: PepsiCo and Coca-Cola.
  • Coca-Cola first came in India in 1977, but due to FERA regime it winded its operations from India and came back in 1993 after 16 years.
  • Currently the brands: Thumps Up, Limca and Gold Spot which is sold under Coca cola roof was previously a part of Parle Beverages. Coca Cola also bought soft drink brands Crush, Canada Dry and Sport Cola from Cadbury Schweppes in early 1999
  • The so called major brand in India, PepsoCo entered Indian market in 1991.
  • PepsiCo also has bought over Mumbai based Duke’s range of soft drink brands.
  • Total market share of both of these companies in 2002 is around Rs. 6247 crores.

 

Now some serious part of soft-drinks:

  • Most of the soft drinks contains: carbon dioxide, artificial sweeteners like aspartame, saccharin, acesulfame-K etc., and flavouring agents like caffeine, acids like phosphoric acid, some preservatives and excessive sugar.
  • Caffeine (Also found in Chocolates and Coffee)
    • Large amounts of caffeine consumption can cause diseases and disorders such as insomnia, nervousness, anxiety, irritability, and deviations from the normal heart rate.
    • A major concern about caffeine is that it increases the excretion of calcium in urine, which increases the risk for osteoporosis in heavy caffeine consumers. Some epidemiological studies correlate exposure to caffeine during pregnancy to the occurrence of congenital malformations, foetal growth retardation, miscarriages (spontaneous abortions), behavioural effects and maternal fertility problems.
    • US FDA (US Food and Drug Administration) issued an advisory in 1981 warning that "Pregnant women should avoid caffeine-containing foods and drugs, if possible, or consume them only sparingly."
  • Artificial Sweeteners (Also found in the Chewing-Gum like Orbit)
    • Artificial sweeteners like saccharin, aspartame and acesulfame-K have been linked with numerous diseases like cancer increasingly.
    • Saccharin has been linked in human studies to urinary-bladder cancer and in animal studies to cancers of the bladder and other organs (Lancet 1980;i:837-840. Env. Health Perspectives 1998; 25:173-200).
    • Aspartame is a potent neurotoxin and endocrine disrupter.
    • The overall health impact of artificial sweeteners can be gauged by the fact that they are regulated by means of Acceptable Daily Intake (ADI), similar to toxic substances like pesticides.

Source: FAO Nutrition Meetings Report Series, WHO/Food Additives; http://www.inchem.org/pages/jecfa.html

  • Acids and Carbon Dioxide
    • Dentists around the world are reporting complete loss of the enamel on the front teeth in teenaged boys and girls, who habitually drink soft drinks.
    • The culprit is phosphoric acid in soft drinks, which causes tooth rot, as well as digestive problems and bone loss. Phosphoric acid has also been associated with calcium loss and kidney stones in numerous medical studies.

 

    • The most common pesticides detected in the soft drink samples were – Lindane, δ -HCH, Chlorpyrifos, Heptachlor and Malathion.
    • Lindane
      • It damages human liver, kidney, neural and immune systems and induces birth defects, cancer and death. Chronic administration results in endocrine disruption in birds as well as in mammals.
      • Treatment with 1-40 mg of lindane/kg of body weight may adversely affect reproductive performance in males. In females lindane decreases sexual receptivity.
      • Lindane is a potent carcinogen. Rats exposed to gamma HCH showed evidence of liver cancer.
    • Chlorpyrifos
      • Chlorpyrifos, one of the most widely used organophosphorus pesticide and has been reported to be a developmental neurotoxicant specifically targeting the immature brain.
    • Malathion
      • Malathion, a known cholinesterase inhibitor. Primary site of action in insects is nervous system.

Source: Analysis of Pesticide Residues in Soft drinks - August 2, 2006 by Centre for Science and Environment