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Presenter: Rajiv Wakhle

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1 Presenter: Rajiv Wakhle
PepsiCo: Adding Value in Potato Supply Chain Through World Class Bulk Potato Stores Technology 4th International Summit cum exhibition on Food Processing, Agribusiness & Cold Chain. 5th Nov 2012, New Delhi Presenter: Rajiv Wakhle

2 PepsiCo- Global Fact Sheet
Second Largest Food And Beverage Company Annualized Revenues Of Nearly $ 66 Bn Largest Portfolio Of Billion Dollar Food And Beverage Brands- 19 Employs 285,000 People Worldwide

3 PepsiCo in India Largest Food and Beverage Business in India
Third Largest FMCG Business We provide direct/indirect employment to over 150,000 people Pioneering work done in Agriculture and work with over 22,000 farmers

4 PepsiCo’s world class manufacturing facility in Kolkata

5 Complete automation untouched by hands

6 Strong agenda on Sustainability
Human Sustainability: To encourage people to live healthier by offering a choice of both enjoyable and wholesome foods and beverages. Environmental Sustainability: To be good citizen of the world, protecting Earth’s natural resources by innovation and more efficient use of land ,energy, water and packaging in our operations Talent Sustainability: To invest in our associates to help them succeed and develop the skills needed to drive company’s growth, while creating employment opportunities in the communities we serve.

7 PepsiCo’s Agricultural Footprint
Bihar Potato PUNJAB Basmati,; Direct seeding of Rice, potato Seed RAJASTHAN Barley, Basmati KARNATAKA Potato, Direct seeding TN – Direct seeding Gujarat Maharashtra Haryana -: Potato, Direct Seeding West Bengal Potato Punjab, Haryana, UP, Bihar, Gujarat, Maharashtra, West Bengal, Chhattisgarh, M.P. Karnataka Direct Seeding Punjab, Haryana TN, Karnataka, Barley Rajasthan Basmati Rice Punjab UP -: Potato

8 Lays - A Flagship Brand and Potato Is Our Biggest Raw Material

9 India, a second largest Potato producer
Potato production (Million Tonnes) in different Countries-2010 However, In India, processed potatoes currently constitute less than < 5.0 % of annual production

10 Major Potato producing States in India
2000 4000 6000 8000 10000 Production ('000 MT) U.P WEST BENGAL BIHAR PUNJAB GUJARAT M.P ASSAM KARNATAKA S T A T E S

11 “Partners in Progress” Model
At PepsiCo, we provide a win-win market linked self sustaining Contact Farming Model Agri Companies Quality based fixed buyback ‘Pay for Performance’ systems to drive quality and continuous supply Program support Insurance Govt Banks Farmer Locally evolved Farmer’s Organization Directly with the Farmer PepsiCo Seed Input Companies Provide technical support and extension services for chip grade farm practices. Advantaged Seed Storage Services “Partners in Progress” Model

12 PepsiCo initiatives in Potatoes Cultivation in different States
Central (Jan - March) East (Jan - March) (Apr-Aug) - Stored Potato North (Dec – March , Stored Potato (Apr to Aug) Far South (Aug - Nov) West (Aug- Nov) Summer (Kharif) – 25% Aug - Nov Winter (Rabi) – 75% Jan - Mar Punjab & Haryana WB & Bihar MP - Indore MH - Pune KN - Dharwad UP-Agra GJ- Deesa

13 Quantity and quality issues
Potato Supply Chain Factory 4 Months Fresh From South & West Quantity and quality issues 4 Months Fresh Rabi Crop FEB - MAR MAY-JULY AUG - SEPT – OCT- NOV OCT-NOV-DEC DEC- JAN- FEB- MAR Harvest to STORE Planting Harvest Direct to factory Planting Harvest to factory FRESH SEASON 2800 Kms Karnataka Indore Pune 1400 Kms/5 days 600 Kms/2days 800 Kms/3 days Kolkata Channo 2500 Kms/8 days 2,068 Kms/ 7 days Critical supply period: August Nov.-Dec. APR-MAY-JUN-JUL-AUG APRIL AUGUST 5 months Storage Season

14 H. C. J. Godfray et al., Science 327, 812-818 (2010)
Total Food Waste in Developed and Developing Economy Huge opportunity to add value in Transportation /Storage Space H. C. J. Godfray et al., Science 327, (2010) Published by AAAS

15 Transportation and Storage are the two of the biggest Controllable Post Harvest Losses
INDIA – Losses in Potato Supply Chain 20% Loss While the total supply losses are around 14%, losses on stored qtys. are a whopping 20% !!. East nos. similar Total Loss Close to 11 Million tons lost – nearly INR 4800 crores every year ( Assuming Potato Price Rs 4/- per kg) Huge Wastage in Transportation & Storage – 20% ( 7 Million tonnes Crores ) Increases the cost by 30%

16 Controlling Losses: Brining Global Modern Cold Stores Technology in India and Intervention in Transportation Improved Transportation Low Bruising and Damage Reduce Losses – 1% vs 4% Modern Cold Stores- Bulk Stores Maintain Optimum Storage Condition Long Storage – Losses 3% vs 9%

17 Bulk Potato Store : A Steep decline in storage losses

18 Yellow Springs Instrument (YSI): Technical support to monitor potato condition in stores
The YSI is an enzyme specific biochemistry analyser used to measure sugars in potatoes Produces results that are specific for Sucrose and Glucose Name of File.ppt

19 Adding Value by Minimizing Loss in Storage Through Bulk Store
Ensures Predictability - Delivers longer shelf life (8-10 months) with quality produce as compare to 4-5 months in case of traditional stores thereby ensures longer supply windows to industry Ensures Quality - Maintains desired storage conditions for process potatoes (Right temperature, humidity &CO2) Cost Advantage - Delivers minimum storage shrinkage and rotage losses (3 to 6 %) Better Predictability Better Quality Better Cost


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