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PepsiCo: Adding Value in Potato Supply Chain Through World Class Bulk Potato Stores Technology Presenter: Rajiv Wakhle 4 th International Summit cum exhibition.

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Presentation on theme: "PepsiCo: Adding Value in Potato Supply Chain Through World Class Bulk Potato Stores Technology Presenter: Rajiv Wakhle 4 th International Summit cum exhibition."— Presentation transcript:

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

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 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 PepsiCos 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 Earths 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 companys growth, while creating employment opportunities in the communities we serve.

7 Bihar Potato PUNJAB Basmati,; Direct seeding of Rice, potato Seed RAJASTHAN Barley, Basmati KARNATAKA Potato, Direct seeding TN – Direct seeding Gujarat Potato Maharashtra Potato 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 Rajasthan PepsiCos Agricultural Footprint 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 Production ('000 MT) U.P WEST BENGAL BIHAR PUNJAB GUJARAT M.P ASSAM KARNATAKA S T A T E S

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

12 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 PepsiCo initiatives in Potatoes Cultivation in different States

13 Planting Harvest Factory APRILAUGUST 5 months Storage Season Critical supply period: August Nov.-Dec. MAY-JULYAUG - SEPT – OCT- NOVOCT-NOV-DEC FRESH SEASON DEC- JAN- FEB- MAR FEB - MAR Harvest to factory Direct to factory 4 Months Fresh From South & West Planting Harvest to STORE APR-MAY-JUN-JUL-AUG 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 Quantity and quality issues Potato Supply Chain 4 Months Fresh Rabi Crop

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

15 Transportation and Storage are the two of the biggest Controllable Post Harvest Losses 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% 20% Loss INDIA – Losses in Potato Supply Chain

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

17 Bulk Potato Store : A Steep decline in storage losses

18 Name of File.ppt Page 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

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

20 THANKS


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