INDUSTRIAL PROFILE

HISTORY OF SPICES INDUSTRY

By 3000 B.C, turmeric, cardamom, pepper and mustard were cultivated in

Harappa and Mohenjo-Daro, in the Indus valley, were of occupied mixed stock somewhat
larger in structure than either the Sumerians of those communities. The bad club wheat barely
sheep and goats from the Iranian plateau and cotton from Southern Arabia or North East Africa
but were held back by their reliance on food water due to lack of knowledge of irrigation.

Summer bad trade links with the Indus valley via Hindu Kush by 3000 BC and by sea
from 2500 BC thus thinking the Harappa’s with both Sumerians and Egyptian, where cumin,
anise and cinnamon were used for embalming by 2500 BC.

By 1750 BC Harappa civilization had disappeared probably due to flood and tectonic
shift were replaced by the Aryans who invaded via Hindu Kush by 1500 BC. The Aryans had
considerable contact with Babylon from whence the original flood legend arose o be adopted
by both the Aryans and the Hebrews and several other civilization.

In Britain the term “curry” has come to mean almost any Indian dish whilst most from
the sub-continent would say it is not a world they use but if they did it would mean a meat,
vegetable or fish dish with spicy sauce and rise or bread.

The earliest known recipe for meat in spicy sauce with bread appeared on tablets found
near Babylon. In Mesopotamia written in uniform text discovered by the Sumerians and dated
around 1700 BC probably as an offering to the good Marduk
INDUSTRY PROFILE OF SPICES

. Spices and aromatic vegetables products were used as a flavouring or condiment

normally refer to the derivatives from certain herbs like seed, Leaves, Bark, root etc. They were
used mainly for enhancing taste of the food. The word spice is derived from the word spices
which was applied to groups of exotic foodstuffs in the middle ages.

Spice term was formerly applied also to pungent or aromatic food, as ingredient of
incense or perfume and to embalming agent. Modern trend to limit the term to flavouring used
in food or drink. Although many spices have additional commercial uses eg: as ingredients of
medicine, perfumes, incense and soaps.

The earliest literary record in India on spice is the Rig Veda. (BC1500). The story
Indian spices dates back to BC 7000 years into the past during the period of gulf of Campattu,
which is discovered into the sea shore of Gujarat. In the modern world major thrust traditionally
a country of agriculture India leads the trade spices can improve the palatability and the appeal
of dull diets or spoiled food piquant flavours stimulate salivation and promote digestion in
tropical climate. On the other hand they can add sense of inner warmth when present in cooked
foods used in cold climate in India, traditionally, spice, formed a part of common man’s daily
food.

INDIA AND SPICES

India produces 2.5 million tones to 3 million tones of spices annually. India produces spices
of different categories worth around US$ 3 billion. In terms of volume and value, India
accounted for 46 percent and 23 percent in value of global spice trade. (Source: Spices Board
India) India accounts for 25-30 per cent of world’s pepper production, 35 per cent of ginger
and about 90 per cent of turmeric production.

Among the Indian Federal states, Kerala tops in pepper (96 percent), Cardamom
(53 percent), Ginger (25 per cent) production in the country. Andhra Pradesh leads in Chilly
and Turmeric production in the country with 49 per cent and 57 per cent. In coriander, cumin
and fenugreek production in the country, Rajasthan emerges as the largest producer with 63
per cent, 56 per cent and 87 per cent. The world spice trade is estimated at US$ 1.5-2 billion
in terms of value and 500,000tonnes in terms of quantity.

CURRENT SCENARIO
Within the past one decade, the international trade in spices has grown by leaps and
bounds. As estimated 500.000 tone of spice and herbs values 1500 million US dollars are now
imported globally every year. An impressive 46% of this supply comes from India. India’s
exports and spice extracts have made spectacular growth attaining over 50% of the global
market within a short span.
This remarkable achievement is boon of a sea change in the industry scenario.

The Indian share

At present India produce around 2.5 million tones of different spice valued at
approximately 3 million US dollar, and hold the premier position in the world. Because of the
varying climate suitable for the spice cultivation almost all spices are grown in this country.
In almost all spices are grown in this country. In almost all the 28 states and six union
territories of India, at least one spice is grown in abundance. No country in the world
produces as much variety of spices as India.

EXPORTS OF SPICES FROM INDIA

India can now boast as the monopoly supplier of spice oils and oleoresins the world over. In the case
of curry powders, spice powders, spice mixtures and spices in consumer packs, India is in a
formidable position. The consistent effort of the Board during the last one decade has improved the
share of the value added products in the export basket to 60%

HISTORY OF FOOD INDUSTRY

The Food Industry has changed and developed over the decades in order to satisfy customer
needs and consumer behaviour. This industry is characterized by a complex system of
activities concerning supply, consumption and delivery of food products across the entire
globe. My dissertation will focus on the history of the American food industry, concentrating
on the development of the market from World War II (WWII) until today. Before WW II, all
over the world the people used to eat in very simple ways using only local and seasonal
products as they were constrained to a geographical area. Another important change occurred
in the role that women played within their family: as the men left to fight in the war the
female population had to replace them working in industry. While their disposable income
increased, the time they could dedicate to housework decreased drastically, with a consequent
rise in demand for industries that could produce readymade food in their place. After the war,
the processed food that was initially developed for soldiers on the frontline became produce
for grocery stores and restaurants in towns and cities. This phenomenon became even more
evident when Richard and Maurice McDonald understood the importance of making food
quickly, selling it cheaply and spending less time and resources in looking for the best quality
food sources and in the final product. The two brothers redesigned the food preparation
sector, as in the automobile assembly line, in order to achieve the product at a lower cost.
McDonald’s was the first of a series of fast food restaurants that, in a brief period, managed
to compete in the market by offering reasonable products at a low price. 4 However, very
soon studies started showing how cardiovascular problems, diabetes, musculoskeletal
disorders, cancers and obesity, all diseases related to poor eating habits, were drastically on
the increase. The results were analysed by several scientists, as, for example, Ancel Keys
who observed how, unlike monounsaturated fats, saturated fats caused heart diseases. In
1968, Senator George McGovern, head of the Senate State Committee on Nutrition and
Human Needs, started out on a mission to fight bad dietary habits. He worked on several food
assistance programs aimed at formulating science based recommendations on which healthy
foods Americans should eat in order to lower their risk of heart diseases and other chronic
illnesses. The word ”Dietary Goal” was first published in 1977 and stimulated reactions in
the scientific community, in the food industry and numerous public health organizations.
Soon food producers had to face a new challenge: awareness about healthy nutrition was
increasing, the slogan “you are what you eat” became more and more representative of the
people’s new mindset. However, whilst people wanted to consume food with no fat, it was
actually the fat that gave it flavour and so, once it was removed, the consumer no longer
found it attractive. The industry had then to invest millions of dollars adapting to the
consumers’ new requests but also maintaining the products’ appeal. Not only fast food chains
tried to diversify and introduce new lines of products such as salads, fruit and organic food,
but also competition between restaurants and fast food chains that offered healthier foods
increased. As people looked for healthy alternatives, this phenomenon caused the decline of
many conventional fast food companies that in the past had been market leaders. The opening
chapter of this dissertation will initially analyze the changes in consumer behaviour and the
different business models since the last World War.
Consumer behaviour describes how people make decisions when purchasing goods.
Businesses continuously search the solution to this question in order to have a much better
chance of creating and producing the right merchandise for the right target consumers at the
right time. People make decisions about goods from much earlier than they probably realize.
Over time they develop a systematic way to choose from among the alternatives sometimes
not even being not aware of it. Other consumers, instead, follow a similar process of making
decisions. Business enterprises are established in order to create, deliver and capture
prominence with the customer. Whenever a business enterprise is established, it either
explicitly or implicitly employs a particular business model that represents the design and
architecture of the mechanisms it uses. It thus reflects management’s attitudes to what
customers want, how they want it, and how the business can best meet those needs, get paid
for doing so, and make a profit. In the second chapter of my dissertation I will focus on the
American food industry, its development through time and its specific characteristics. By
observing its complete story and changes over the decades, clear evidence of market trends,
transformation and mechanization will emerge. The one factor of our lifestyle that changed
drastically during and after WWII is the way we eat. Food had to evolve, and with that
evolution came industrial farming at a scale we had never seen before, mass food
preservation through canning or freezing, and a technical revolution in the kitchen. One of the
biggest changes instituted by WWII was the increased demand of processed food as women
went out to work to replace the male workers sent to war and had less time to cook in the
home. To feed the soldiers at front, the market developed new ways of offering readymade
food that was easy to eat and to store; thanks to its success, after the war it was also
implemented in American society creating a revolution in food production. The last chapter
of my thesis will concentrate on two typical companies of the American and global food
market. I decided to focus “A&W All American food” and “PaneraBread” as they represent
how businesses have adapted to changes in consumer behaviour and how new business
models were employed to create impact on the customers and satisfy their continuously
changing needs. Comparing these two businesses it is easy to see how firms have
concentrated on different requests over time. The first represent the post-war mindset:
companies that wanted to produce fast, cheap, tasty and appealing food in huge quantities,
while the second shows how the increase in health awareness and importance of nutrition has
influenced the way in which food is offered nowadays: slow, healthy, accessible and natural.
In my dissertation I will endeavour to report the phenomenon of changes in consumer
behaviour and the consequences on the food market. Through research and the analysis of
data from several sources, I will attempt to demonstrate how habits and attitudes have
changed in time and, whilst there has been an increase in consumer demand for convenience
and pleasure, how, in recent years, there also been an escalation in awareness regarding
health and sustainability issues. These new trends have drastically influenced how businesses
operate in the food market and who the market leaders are.

FOOD AND BEVERAGES INDUSTRY

The global food and beverages industry is made up of many segments, including groceries,
oils and fats, food additives, functional foods and beverages, packaged foods, health and
natural foods, canned food, baked food, baby food, animal food, soft drinks, alcoholic drinks,
energy drinks and packaging.
The industry is driven by consumer demand for more nutritious food and better packaging,
which also spurs technology advances in the field. Today pasteurisation, high pressure
processing, UV treatment and nanotechnology are influencing the industry. A concern for the
environment has led to the use of more recycled material for packaging.
The growth of food and beverages industry is propelled mainly by developing countries such
as India, China, Brazil as the economies of these nations improve and more people are lifted
into the middle class.
The global food, beverage and grocery industry was estimated to be worth $7.8 trillion in
2015, or about 10 percent of the world GDP, according to Plunkett research. The global
packaged food industry was worth $2.5 trillion. In 2013, global food exports added up to
$1.43 trillion.
FOOD AND BEVERAGES PRODUCTS IN INDIA
India is expected to become the fifth largest consumer market in the world by 2025, according
to a paper prepared by The Confederation of Indian Industry (CII) and Grant Thornton.
Food and beverages is the biggest of the consumption categories. The F&B sector is supported
by vast agriculture sector. India is the biggest producer of pulses and the second biggest
producer of rice, wheat, sugarcane, fruits and vegetables.
India is also the biggest producer of milk and buffalo meat and ranks fifth in poultry production.
The other helpful factors : large extents of arable lands, favorable climate, long coastline, and
low wages.
The liberalization of the economy in the early 1990s minimized business barriers. The sector
has found more avenues to the market with the development of modern retail system such as
supermarkets. Meanwhile, transportation and storage logistics have improved.
The huge population (1.27 billion in 2015) and the burgeoning middle class are the other
advantages of the industry. About half the population is under 30 years of age, and many of
them start to earn early and strive to lead a better quality of life.
The higher income levels of consumers give them higher disposal incomes. Lifestyle have
changed, and more families are eating out and trying different cuisines. Working couples are
increasingly purchasing convenience foods.
Consumers have become more discerning and those in urban areas particularly trust branded
foods for their promise of quality.
A section of consumers have become extremely health conscious. This segment is moving
towards protein-rich foods, fruits and vegetables from carbohydrate-rich or fat-laden items.
Quality-conscious customers have taken the bottled water market to $50 million.
The beverage industry, excluding alcoholic beverages, is worth about $16 billion. Tea and
coffee are the most popular beverages, followed by soft drinks (carbonated drinks and juices),
health drinks, milk-based drinks, flavored drinks and energy drinks.
Half of the tea and coffee consumed in the country is sold unpacked. The alcoholic beverages
market is estimated to be worth $35 billion, with whiskey, beer and wine as the most popular
drinks.
The F&B industry would do well to adopt global standards of quality and safety to earn more
consumer trust. The need of the hour is the introduction of Total Quality Management
principles.

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 COMPANY PROFILE

ABOUT GRANDMA’S KITCHEN:

Grandma’s Food Products was established by one of the leading business group of Kerala
M/S K.P Chacko and Sons in the year 1994 at their hometown, Muvattupuzha. The company
started its operations with just one but unique variety of pickle. Hot and sweet lime pickle.
Key ingredients to this pickle are lime and dates with a unique mouth mattering taste of both
sweetness and hot. Over and above all it was 100% preservative free. Later on other varieties
of pickle were introduced in their product line and diversified into various other varieties of
food products like jams, squashes, soft drinks, spices, curry powders, canned foods ready to
eat vegetable curries, rice floor, wheat floor, snacks and many more.

Grandma’s believe that social concern and organisational reputation are much more
important than profitability. So the company is committed to the introduction of food
products with highest standard of hygiene and quality at very reasonable prices. Professional
management, scientific approach, innovative products and strict quality and hygiene
management has bought Grandma’s food Product to great success.
Grandma’s have emerged as one of the major exporter of food products from Kerala. When a
major exporter from the United States of America came to know about the Grandma’s hot
and sweet pickles. They verified the product, inspected the factory and hygiene standards and
requested Grandma’s to supply them for marketing in USA. In US, pickles which were not
hot were in greatest demand and hence hot and sweet pickles were a great success there.
Export encouraged Grandma’s to introduce not hot varieties and after much study Grandma’s
came out with Grandma’s lime white pickle which was another innovative product in the
market. Grandma’s later on introduced other white pickles mainly for exporting. Grandma’s
now hold a major share of pickle market in USA.

Grandma’s is associated with many gherkins dealer in Israel and now is major exporter of
gherkins from India to Israel. The Grandma’s factory was awarded “KOSHER” certificated
from Israel Health Department for its good manufacturing practices.

Apart from these Grandma’s food products is exporting products to Canada, European
Countries, Middle east countries, Australia, Botswana and various other part of the world.
VISION
The vision of the company is to spread across the world, the goodness of traditional taste of
Kerala through Grandma’s range of products.

MISSION
To produce a world class business leader in food industry through International best
practices, better entrepreneurship and management and develop globally competitive process
and technology of food processing.

FUTURE EXPANSION
The rapid expansion of the food industry and better marketing has stimulated increased
demand of processed food Grandma’s food products are on the look out to conquer more
market share and introduced of new innovative products. Grandma’s is also planning to re-
design the supply chain achieve more efficiency and coverage.