The Pumba Gazette June Edition

THE EDITORIAL Address,

CONTENTS:

Today, with the fast pace of life affecting the general heath of individuals, people in India are becoming increasingly aware of natural ways to good health. In order to maintain a healthy digestive system it is essential we consume the ‘good-for-you’ food, but this time its all about food that contains live microorganisms. Probiotics are the latest in category of good-for you food.

•

The worldwide market for probiotics is ripening fast. However, in India, the market has just been conceived. The awareness of probiotics amongst the masses is still moving at the slower pace. In light of this, we have decided to take up the Indian Probiotic market as the subject of matter for this issue.

•

Cover Story -

Are we ‘pro’ for Probiotics?...........................3

Back to Society --CSR Initiative by PANACEA BIOTEC LTD…4.

An intensive study has been done by the students of PUMBA in determining the awareness of probiotics in the Indian Market. We also bring to you an exclusive Interview with Mr.Vishwajit Chauhan of GCMMF Ltd, highlighting on current market scenario of Probiotic Industry

•

BT News --The Pro-Straw…………………………………5

We also present to you one of the 12 part series of notable CSR Initiatives. The article titled “Back to Society” this time covers the initiative by PANACEA BIOTEC Ltd.

--The Mega Food Park…………………………6

In BT News section, we bring to you the latest developments in the Probiotic Sector.

•

In addition, a Section to keep you updated on happenings in PUMBA has been included.

Candid Talk --Interview with Mr.Vishwajit Chauhan- AMUL. 7

Your feedbacks and suggestions are welcome at •

PUMBA News

[email protected] --The Beginning………………………………8 “To

learn to read is to light a fire; every syllable that is spelled out is a spark.” -Victor Hugo

Sincerely yours, Chief Editor: Ms.Prachi Waral (MBA BT) The PUMBA Gazette team (The detailed project report shall be provided on enquiry, kindly send in your enquiries at [email protected])

2

ARE WE ‘PRO’ FOR PROBIOTICS??? In today’s hectic lifestyles, a large number of people are becoming health conscious and realizing the importance of a healthy diet with high nutrition content. Due to this, an increasing trend had been seen in the use of Probiotic products. Probiotics is a relatively new segment of the Indian food industry and the market in India is in its early stages. The major players in this market include Amul, Mother Dairy, Nestle and Yakult. The products available include innovative probiotic drinks, ice creams, curd and sweeteners.

About 90% of the consumers were of the opinion that more awareness should be created and 2/3rd of the existing consumers preferred probiotics to normal foods mainly due to their nutritional value.

In order to understand the potential of Probiotics in Tier Ι cities, the PUMBA Gazette Team conducted a survey to study the awareness and usage of Probiotics in Pune region. The survey sample included consumers as well as retailers. Of the surveyed sample, 45% of the consumers were unaware of probiotics. Also about 34% of the sample surveyed were aware of probiotics but did not use them. The major reason for this was confusion about the benefits of probiotics in the minds of the people. Availability was also found to be a factor for limited usage.

It was seen that there is a good potential for probiotics in a Tier 1 city like Pune since around 55% of the sample surveyed were aware of these products. In addition to this a major chunk of the aware sample, were not using probiotics. Thus, Pune can be a very latent market as far as probiotics are concerned. Suggestions & Recommendations It was observed that Probiotics are not easily available in a city like Pune. The survey on retailers revealed that there is a demand for probiotics but the supply is not in accordance to the demand.

In order to explore Tier 1 cities as a market for probiotics: 1) The awareness among the population could be increased via vigorous and educational advertisements by manufacturers through: Print media, Electronic media, Internet & Workshops

Television was found to be the main source of information about probiotics.

Television has found to be very influential in increasing penetration amongst consumers. Hence, this medium should be exploited to the maximum. More number of ads for probiotic products should be commissioned. Such ads should give specific emphasis on the nutritional and other benefits conferred by this product, as consumers are not aware of the exact benefits. 2) Better positioning and display of probiotic products at retail outlets should be done so that people do not confuse them with conventional products. 3) Lesser price of products and discounts at regular intervals may be provided, as most of the consumers were found to be reluctant to shell out extra money for them. 4) Door to door marketing of the products should be done to create more awareness. Probiotic products should be made easily available. ________________________________________________ Compiled By: Dhruva Deshpande, Mariyam, Minal Ambre, Nidhi Nirmal, Ruchi Bharadwaj, Rutuja Patil, Sarabpreet Bindra, Snigdha Sinha, Soumya Gupta

Most of the existing consumers have been using probiotics for the past 1-2years. In addition, the data collected from consumers and retailers revealed that the use of probiotics has increased in the last couple of years. It was found that Prolife, which is a probiotic sugar free ice cream, from Amul, is the most popularly, used probiotic food. This was followed by Nutrifit (Mother Dairy) and then Nesvita (Nestle).

Mentor: Mrs. Pratibha Bhide, Faculty (PUMBA)

3

BACK TO SOCIETY: A CSR Initiative by PANACEA BIOTEC LTD.

Panacea Biotec has not just made its name to the top biotech companies of the nation but has been also working closely towards the development of society, in line with its philosophy of creating happier and healthier society. Health, education, disaster relief and patient awareness are the areas of priority. Assistance to the tribal sects is not ruled out either. Also, the company takes important measures towards safety regulations and pays attention to the environment. The company, thus, has an integrated approach to uplift the society, both medically and socially. It is regularly providing financial assistance/ sponsorship for pursuing postgraduates / doctorate studies, attending International Conferences and carrying out Research Projects in various Institutes & Universities. The Company regularly takes initiatives towards fulfilling its corporate social responsibility including: -- Transplant Fortnight: Patient awareness activities spread across India covering 72 Organ Transplant centres and drawing more than 3500 patients. Major emphasis was given on ways and means to improve the Post-transplant life of transplant recipients. -- Patient home delivery for Transplant drugs. -- Donation of life saving drugs to hospitals. -- Part of their CSR activity also includes creating awareness for Hyperphosphatemia by organizing Phosphorous & Calcium screening camps. -- Organization of various renal function detection camps as a part of the awareness towards prevention of Chronic Kidney Disease on World Kidney Day. -- Diacar SBU was vigorously involved in spreading awareness and facilitating detection for diabetes and neuropathic complications of diabetes through regular diabetes detection and neuropathy screening initiatives. -- Osteoporosis, estimated to afflict 30% of Indian population not only has a huge morbidity burden but also is a leading cause of death in older patients due to hip fractures. Early diagnosis of osteoporosis can help control the condition largely. The company uses its BMD machines to conduct highly subsidized tests to measure bone mineral density of patients. In last 12 months, Panacea has screened more than 100,000 patients.

Doctor’s Day: Continuing the gesture of showing it is gratitude towards the medical fraternity, the company wished all the doctors, a happy Doctor’s Day on 1st July. Messages of good wishes from the Chairman Mr. Soshil Kumar Jain for the doctors were released through Newspapers, SMS as well as FM Radio. The patients were also encouraged to show their gratitude towards their doctors by wishing them on the occasion. Many doctors responded to the message of the Chairman by sending e-mails and SMS. This pioneering activity from Panacea Biotec would strengthen the relationship between the doctors and the people at large. CHINH: During the year under review, the Company continued to support CHINH to make a difference in lives of nomads in foothills of Aravali and began a tradition of development that must continue. CHINH is an NGO’s initiative to support Nomadic communities in generating livelihood through harnessing their traditional wisdom, art and culture. Dedicated to nomads of India, this initiative’s prime focus is helping future generation of nomads in creating space for them in civil society and encouraging them to lead a life of dignity. Muktidhara, an NGO in Rajasthan is lighting the path to liberation by making the wheels halt for those perennially on wheels. Attempts to settle various Indian nomadic tribes and integrating them with civil communities have borne fruit. The next step is to find new means of livelihood for Banjara, Bawaria, Sapera, Bhopa Nat and several other nomadic tribes. Panacea Biotec undertakes all its operations with high concern for safety, health and environment and is committed to maintaining high standards in these areas. Substantial investments have been made in setting up Effluent Treatment Plant and in developing a “Green Belt” at the manufacturing sites at Lalru & Baddi to prevent possible adverse environmental impact on the community. The vaccine R&D facility has been created with classified laboratories including BL-3 facility for carrying out certain R&D activities, which require containment. All personnel working in R&D are vaccinated as per the Vaccination Policy. Bio-waste is disposed off as per the bio-waste management system. Bio-safety Committee periodically reviews all the bio-safety measures in R&D. The Company has installed Modern Fire Hydrant System with sprinkler system and smoke detection & sensing devices at its all-major facilities, for an early detection and extinguishing of accidental fire. Regular training is also provided to the Company’s employees about the importance of safety in day-to-day life in general and works in particular. The integration of environment friendly measures and cleaner production practices in the business process has resulted in better efficiency of operations. _______________________________________________

-- On World Piles Day, 20th November, the Company conducted 145 Piles detection camps across geographies in India with a view to facilitate piles detection across all strata of patient population and to bring awareness for piles. -- It is one of the first Indian companies to successfully run a month long Breast Cancer Awareness Program to create awareness on “Importance of Early Detection in Breast Cancer”.

4

Complied By: Ameya Budukh ( MBA-BT Sem III) Special thanks to Ms. Veenu Kapoor and Mr. Santosh Singh ( Panacea Biotec)

Probiotic Straws for GOOD HEALTH After recently joining forces with the packaging giant Tetra Pak to introduce its new on-pack probiotic straw on Tetra Pak aseptic packages, Unistraw has now granted Danisco worldwide exclusive rights to sell and market its internationally-patented straw concept for use with HOWARU ™ premium probiotics. This award-winning concept from Unistraw will allow consumers to sip a probiotic daily dose with any of their favourite beverages. Currently, probiotics are largely restricted to chilled applications especially dairy products and have a short shelf life. However, the HOWARU ™ Straws offer a convenient dry format, ideal for ensuring the delivery of a highly stable dose of live probiotic bacteria, without requiring chilled storage or distribution. The Unistraw is a patented straw-drinking and delivery technology that adds flavors, nutrition, energy or fortification through beads (‘Unibeads’). Dry, stable ‘Unibeads’ are incorporated on filters at both ends of the straw , these beads then dissolve through liquid passing through the straw, delivering additional probiotics to a consumer along with the beverage. Probiotic straws provide a clinical dose to a beverage at the point of consumption and, in theory, preserve the integrity of the ‘dormant strains’ that only becomes active when liquid is introduced to the straw. The bacterial cultures responsible for all this are L. reuteri, which are located inside the straw. Studies have shown L. reuteri to be free from side effects, even when administered in doses widely exceeding the levels normally contained in Reuteri products. These bacteria are tasteless and odorless. Each Probiotic Straw contains 100 million organisms. Good bacterial levels begin to appear in the intestines within a few days of starting supplements of these straws. The straws can be used by any child or adult and can also be used with juice boxes and pouches because of the pointed end that can punch through foil.

5

BioGaia is another player in probiotic straws. The company has been developing probiotic straws for several years but progress has been admittedly slow with sales at “low volumes” for three years in half a dozen markets. But in the company’s Q3 results, which saw its operating profit surge 557 per cent from €330,000 to €1.84m, a recent deal was highlighted that sees its probiotic-laden straws being used with Nestlé children’s products called Boost Kid Essentials in the US. The price of one Biostraw is approximately $ 28.99. BioGaia is also developing a bottle cap that works on a similar delivery principle for the gut health and immunity boosting bacteria. This new concept opens up new marketing options for beverage and milk manufacturers who will be able to offer probiotics for long shelf-life applications, thanks to the Probiotic Straws. Danisco has already successfully launched its first product with this technologySipahh™, milk-flavoring straws- in over 70 markets around the world. Danisco and Unistraw expect Tetra Pak’s Tetra Brik Aseptic cartons to be able to carry the probiotic straws from mid-2009. Thus a daily dose of Probiotic Straw will boost immune system and keep the individual in good health.

Western India’s first Mega Food Park The first Mega Food Park in Western India under the Ministry of Food Processing Industries (Govt. of India) Mega Food Park scheme in the 11th 5-year plan has been given to the Pune based Chordia Group. The Western Agri Food Park was inaugurated on February 28, 2009 at the hands of Union Minister of State Food processing industries, Govt. of India, Mr. Subodhkant Sahai, along with Union Minister for Agriculture and Food and Civil Supplies Mr. Sharad Pawar. This food park will be built on 75 acres of land and is located at Shirwal in Satara district of Maharashtra. The investments will be Rs. 120 crores for the common facilities and will leverage investment of about Rs. 500 crores in processing units. The Central Government will contribute Rs. 50 crores towards common facilities in the Mega Food Park.

The park will have common processing facilities for seasonal fruits & vegetables, washing, sorting & grading facility, storage facility, quality control lab, pre-cooling units, packaging facility, and basic infrastructure facilities like water treatment plant, ETP, electric sub- station, conference hall, guest house etc. The park will also be setting up collection centers in Pune and Satara district and will have mobile collection centers for other locations. It is expected to generate direct and indirect employment for around 15,000 people. Investors setting-up processing units in the food park, have to enter into contracts with farmers. The farmers will supply fruits or vegetables at predetermined rates; this will thus assure farmers of an income and the food processors of raw material.

Hence, a well-expanded and matured foodprocessing sector in the country will play an important role to optimize its agricultural produce and lift the farmers’ economic status.

Compiled By: Tejaswini Lunkad (MBA-BT, Sem III)

Apart from Chordia Food Products of the Chordia Group, Western Agri Food Park Private Limited will have Pravin Masalewale, Akruti City Ltd, Ashoka Builders Nasik Pvt. Ltd., Poona Dal and Besan Mills as other promoters.

Though India’s agricultural production has grown manifolds, we have been processing only 10% of the food we produce as against the world average of 60%. Thus, the objective of the Mega Food Park scheme is to help catalyze the foodprocessing sector in the country by increasing the processing level by at least 8-10%.

6

“There is no hindrance for the Probiotic market, rather confusion-Mass awareness still LACKING…” Mr.Vishwajit Chauhan is working with GCMMF Ltd, (Icecream Division) as an Executive (Marketing). The PUMBA Gazette team exclusively interviewed him on the Indian Probiotic Market. Q. In developed countries, probiotics has an eminent presence. However, these were introduced late in India. What is the current scenario of the probiotic industry with respect to the Indian market? Ans. Since last 5 to 6 years, several MNCs are said to have planned to launch probiotic food products in India, but Amul is the only company to introduce probiotics in a large-scale manner to every corner of the nation in the form of cost effective and value added products like ice cream, dahi, lassi etc. Amul leads probiotic food market in India.

Q.AMUL is present in the traditional ice-cream segment also. How do the marketing strategies differ? Ans. We do not want to limit probiotics to a certain group of people. We want to make it available for everyone. Our marketing strategy is to increase awareness of probiotics. Q. Are there any significant differences in the supply chain of traditional & probiotic dairy products? Ans.No. Both products go through same frozen supply chain.

Q. According to a study carried out by MBA students at PUMBA, the consumer perception was found to be sceptical about probiotics. What are your views on this? Ans. Consumers were never sceptical about probiotics. There are several traditional products in India that contain probiotics e.g. butter milk, dahi etc. People consume these products for the goodness of probiotics, but they were never aware of it. Awareness for probiotics needs to be increased in India.

Q. Which countries does AMUL export its probiotics products? Ans. We are exporting probiotic ice creams currently to Singapore, Bahrain, Qatar, UAE etc. Q. Are there any differences in the packaging of these products? Ans.We have different pack size and design for probiotic products, so that consumers can notice them immediately. We have created new sub brand “Amul Prolife” for probiotic products. Pack size for ice cream cups is 125ml, which was unique for a long time in our product portfolio when we launched probiotics in January 2007. The 500ml take away pack in Prolife ice cream is also unique in design.

Q. Has consumer acceptability hindered the growth of the Probiotic Industry? If yes, according to you what are the solutions? Ans. We have grown by more than 100% in probiotic ice creams, we will continue with this trend as more, and more number of consumers are inquiring about probiotics. There is no hindrance in the market, but rather confusion, as we said that mass awareness is still lacking.

Q.Which markets currently look lucrative for probiotic products? Ans. As awareness of probiotics is high amongst urban population, we anticipate to get rapid growth in metro cities initially.

Q. Generally it has been observed that prices of probiotic products are higher than the normal dairy products. According to you, how are these products positioned in the minds of the consumers? Ans.Some consumers might be willing to pay extra for any new benefit added to their product, which is true in case of SEC A class consumers mostly, but we target all segments of society for probiotics, so that we can contribute for making our country healthy. Our products are very cost effective. A 60ml Amul Pro-life Probiotic Chocobar costs Rs.12/- to the consumer. Consumers get benefit of probiotics only if they take them regularly. As awareness for health is increasing day by day, probiotics is in the first line of the menu.

Q.What is the future prospects of the probiotic industry in India? Ans. Probiotic food products have a vast scope in India. Nowadays, people are shifting from nutritional products to healthy products to counter the lifestyle diseases occurring due to stress, strain and changing food habits.

Compiled By: The PUMBA Gazette Interview Team Special Thanks: Mr.S.P.Singh (Amul), Mr Dhagat (Amul) and Mr.Shashank Kumar

7

PUMBA NEWS The Beginning...

With all the admission process for the respective courses being in full swing, an air of enthusiasm and excitement is moving through PUMBA.

Management is a continuously evolving discipline because of the dynamic nature of business. With exponential growth in technology and information, it has become all the more relevant.

The new aspirants are both enthusiastic and nervous about their new beginning, while the seniors are eagerly waiting for their fellow juniors. The office staff is busy with the hustle –bustle of the admin work, putting in their best to maintain the process accurate and transparent, whereas the faculty and management , apart from selecting the best of the candidates , is also engrossed in keep up pace with the dynamically changing industry. This pace is maintained by regularly scrutinizing the course curriculum and delivery nothing but the best.

An MBA has been traditionally studied as the functional specializations of marketing, finance, human resources and operations. However, with changing environment of doing business, management has acquired a new paradigm and an MBA program customized to suit the varied needs of the industry has become necessary. Any new change is viewed, as being against a tradition but MBA in Biotechnology program started by the University of Pune in the year 2002 is not Iconoclastic, it is just ahead of its time. The MBA-biotechnology program initiated by the University of Pune has a student intake of 60 each year with students coming majorly from life sciences background.

Every year the course is updated to keep up with the frenetic pace of change. Every year the current batch achieves a new milestone passing on the baton to the next to continue the journey. Success after all is not ephemeral; it is not a destination but a journey, which is eternal, a process of continuous improvement.

Candidates are selected based on their scores in an all India entrance examination AIMS Test for Management Admissions (ATMA) and the combined GD/PI Marks The GD/PI’s are usually conducted in the 1st week of June.

PUMBA would proudly welcome all its new PUMBAites, giving them a stage to realize their potential, transforming their dreams to realities, scaling newer summits time and again. After all, when the summit becomes a base camp, what’s our benchmark??

With almost 90% of the admission process of 20092011 batches being complete, the students are either awaiting their final college commencement dates or the CAP round result. MBA Biotech aspirants are enthusiastically awaiting their college commencement dates. 2009-2011 would a PUMBA’s Proud 8th MBABiotechnology Batch On the other hand 2009-2011 MBA ++ batch have wrapped up with their CET Results and the GD/PI’s. Admission applications have been pouring in largely and candidates are waiting to see themselves in the First merit list. Leading with the admission process, is the executive MBA course that has successfully finished its admissions for 2009 batch, and the college for the same would be commencing from 1st week of July.

8