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Cover Story
The showstopper
The role of trade exhibitions today cannot be undermined.
With Aahar 2008 set to roll out its red carpet to the industry, it helps to
analyse how exhibitions can bring together different agents on the same platform,
whether it is with the government's involvement through ITPO or private initiatives
like HospitalityWorld. By Praveen K Singh
 In
its efforts to promote trade business in the country, the India Trade Promotion
Organisation (ITPO) has created new frontiers in commercial relations, both
at micro and macro levels. Apart from conducting trade exhibitions in India
and abroad, ITPO has also been in the distribution of information on products
and markets, organising buyer-seller meets (BSMs), contact promotion and product
development programmes.
Says SH Khan, senior GM at ITPO, "We set a stage for the trade operators
to present technology upgrades and modernisation of different industry segments."
Other than ITPO, there are several other organisations hosting specific trade
shows for the hospitality industry. Governed by the Ministry of Commerce &
Industry, ITPO conducts its programmes in collaboration with the industry. Conferred
the status of Mini Ratna by the government of India, ITPO also accords approvals
for holding international trade fairs in India.
State initiatives
Through negotiations and discussions with the state governments, ITPO has also
taken steps towards setting up of exhibition complexes in several states like
West Bengal and Assam in the North East. It has also set up regional trade promotion
centres at several locations. In consonance with ITPO's policy to give momentum
to the trade and industry, the Chennai Trade Centre was set up in January 2001
as a joint venture between ITPO and Tamil Nadu Industrial Development Corporation
(TIDCO). Likewise, the Trade Centre in Bangalore, started in September 2004,
has been set up as a joint venture between ITPO and Karnataka Industrial Area
Development Board (KIADB).
Khan says, "These exhibitions have the benefit of remarkable industry backing,
both from the industry and visitor attendance from all over the world. In order
to penetrate the market, ITPO and other organisations conduct Buyer-Seller Meets
(BSMs). One can determine the popularity of the BSMs by the rise in participation
of Indian as well as international companies year by year. The reputation has
gone up in such a way that companies are on waiting list."
| Presently, a small percentage of farm produce is
processed into value-added products. India needs US$ 28 billion in investment
to raise food-processing levels by eight to 10 per cent.
Rapid urbanisation, increased literacy, changing
lifestyles, more women in work force and rising per capita income, have
led to rapid growth and new opportunities in food and beverages sector.
Indians spend about 50 per cent of household expenditure
on food items. New Exim policy places greater thrust on agro-based industries.
The followings are the areas for bilateral Co-operation (in investment,
technology transfer, trade particularly international trade with India
as base)
- Fruit and vegetable products
- Fisheries & seafood
- Wine, beer & alcoholic beverages
- Food processing machinery i packaging
- Total quality i management system
- Animal products, meat & dairy
- Cereals, consumer foods/ready to eat foods
- Cold chain infrastructure
- Food parks
- Human resource development
(Source: ITPO)
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Aahar exhibitions
 With
the support of Ministry of Food Processing Industries, Agricultural & Processed
Food Products Export Development Authority (APEDA), Association of Resource
companies for the Hospitality Industry (ARCHI), New Delhi, Confederation of
Indian Food Trade & Industry (CIFTI), New Delhi, All India Food Processors'
Association, New Delhi and Hotel & Restaurant Equipment Manufacturers Association
of India (HOTREMAI), ITPO has been annually organising Aahar Exhibitions for
the F&B industry and suppliers and manufacturers of hotels and restaurant
industry. It presents a platform for facilitating growth and modernisation in
the processed food and hospitality sectors.
Naseem Ishaque, general manager of ITPO, says, "The 23rd edition of Aahar
this year will be the largest exhibition and is expected to cover a gross area
of about 30,000 square metres, registering an increase of 50 per cent over the
last year." Aahar, organised every year at Pragati Maidan, has been growing
year by year. Ishaque informed that this year the show expects participation
from over 400 exhibitors, which is over 25 per cent more than the previous year.
He said that the exhibition will be in hall numbers 7, 8, 9, 10, 11, 12, 12A
and 18. Hall 18 will be exclusively for processed food. Halls 8 to 12A will
be set aside for hotel and restaurant equipment and suppliers. Last year, the
show saw participation from countries like US, Czech, Malaysia, Singapore, Dubai,
Korea, Canada, Italy, Germany, Pakistan, UK, Spain, and European Union.
ITPO has been planning to conduct regional editions of Aahar. It has been considering
Shillong, Meghalaya and Siliguri in the North East. Khan explains, "The
focus of Aahar would be towards developing the F&B and hospitality market
of these states." Like the annual event organised at Pragati Maidan, the
regional editions will take place with support from related associations including
ARCHI, CIFTI, All India Food Processor's Association, and HOTREMAI.
India is a largely untapped domestic market of over
one billion consumers of whom 300 million consume processed and packaged
foods while an additional 200 million are expected to shift to processed
food consumption by 2010.
- Largest producer of fruits/vegetables/milk/livestock in the world.
- Total food market turnover is US$ 197.7 billion.
- Food Processing Industry has been declared a priority sector.
- Agri and food products export is valued at US$ 106 billion.
- The food processing industry is set to attract investment of about
US$ 540 million in the next six to seven years.
- No industrial license is required for food and agro-processing industries
except for alcoholic beverages and a few items reserved for small-scale
sector. However, foreign investments are allowed in SSI reserved items
under an export obligation (pickles and chutneys, bread, pastry, hard-boiled
sugar candy, rapeseed oil, mustard oil, sesame oil, ground nut oil,
Sweetened cashew nut products, ground and processed spices other than
spice oil).
- Automatic approval to FDI up to 100 per cent equity for all F&B
except for alcoholic beverages and items reserved for small-scale sector.
- Foreign equity ownership of up to 24 per cent allowed up to in six
categories of items reserved for small-scale sector. An industrial license
carrying a mandatory export obligation of 50 per cent would be required
for equity beyond 24 per cent in these six categories.
- Agro-based units established in SEZs and 100 per cent Export Oriented
Units allowed (a) sales up to 50 per cent in domestic tariff area &
(b) Import of capital goods and raw materials at zero Duty.
- Import of food processing machinery allowed freely with low levels
of duties. Import of capital goods for exports of agricultural products
and their value-added variants under Export Promotion Capital Goods
(EPCG) is allowed duty-free.
- Foreign Technology Agreement within norms made automatic.
- Liberal corporate tax policy is applicable for export and domestic
earnings. Corporate tax is 35 per cent. IT rebate allowed - (100 per
cent of profits for five years and 25 per cent of profits for the next
five years) for setting up of new agro-processing industries to process,
preserve and package fruits and vegetables.
- Fruits & vegetables products, dairy machineries are completely
exempt from Central Excise Duty. Central Excise Duty on preparation
of meat, poultry and fish, pectin, pasta and yeast is also completely
exempt.
(Source: ITPO)
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Relevance of other trade shows
 HospitalityWorld,
organised by The Express Group, is one of the best events for the restaurant
and hotel industry, featuring the latest foodservice and hospitality products
and services. Bringing together the finest gathering of the industry's most
prestigious companies, institutions and leading professionals, the event is
recognised by both the sellers' and buyers' community as an incomparable business
platform for interactions and transactions.
The event brings the biggest gathering of hospitality professionals and suppliers
and creates a conducive environment for conducting business. HospitalityWorld
is extensively promoted within business circles across India. This gives it
an edge over all the others within this genre.
HospitalityWorld Going Konkan 2008 was held recently in Goa. The company is
now planning to have several regional editions of HospitalityWorld, which will
now go to Bangalore from June 19-21, 2008. Exhibitors at these shows get enormous
response. "We have been significantly gaining by participating in the HospitalityWorld
events. And the most interesting part is moving to different regions with the
show," says Ramanuj Pathak of Springwel Mattress. Echoing his views, Sunil
Jain of ANI Glasses, expresses, "Professional organisations like Express
Hospitality has been in the industry for a long time and has been effective
in creating a platform for the industry players to do business."
Interestingly, HospitalityWorld has raised a pertinent question on how ITPO
can satisfy both business and consumer class at the same time in the same show.
Sunil Khanna of Aster Technologies says, "We don't have any option than
to participate in Aahar as there are no other relevant and focused B2B exhibitions
for the hospitality industry in this region. The Express Group should organise
HospitalityWorld in Delhi and other cities in north India."
R Kumar of Continental Equipment suggests, "ITPO should restrict entry
of general visitors and should concentrate towards bringing more hospitality
professionals, who are the decision-makers."
 "Aahar
has many facets to it and could do a lot more. Apart from giving the hospitality
equipment sector a fillip it can also contribute by organising culinary
competitions to set a platform for international competition in culinary
excellence. Further, ITPO should try harder to bring about those international
companies that participate in other trade shows like Food Hotel Asia Singapore
or other hospitality trade events in Asia so that people can meet them here.
It is also vital that ITPO should not let its focus slip to encourage small
traders and domestic manufacturers."
- Chef Soundararajan P
General Secretary - IFCA, Member - WACS Education
committee
Corporate Executive Chef, Mahindra Holidays & Resorts India
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 As
one of the key shows in the food processing and hospitality arena, Aahar
brings up an element of surprise each year, which I expect to happen this
year too. But one area where I want ITPO to take initiative is to propagate
the concurrent culinary events that take place along with Aahar as they
have never got any support. They need to sponsor these events as the shows
highlight the needs of various food products and kitchen equipment, best
demonstrating the usage of the same in a near-real environment. Also,
I am expecting a good turnout for the culinary shows and conferences lined
up for the food processing sector in Aahar 2008.
- Bakshish Dean
Executive Chef, The Park New Delhi
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 Every
year Aahar is improving its performance as we witness new participation
from across the globe. This year too I expect it to do a good job in propagating
the needs of the industry and hope to see something new as well.
I expect this show to deliver even better to bring
about the proposition of restrictive entry for a day or two whereby serious
buyer-seller interaction can be facilitated. This will help exhibitors
to not only display but also demonstrate the functioning of new equipment
to chefs or F&B managers. They are always in search of innovation.
Due to the rush in the show, it is sometime impossible for exhibitors
to give time to serious visitors.
- Som Shankar
Director Concepts & Planning
Radisson Hotel, New Delhi
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