Opportunities in Processing & Packaging

in Middle East

Anil Choudhari16th March 2015

Anil Kumar Choudhari, Married, having two sons

Work Experience : 27 years ( 21 years in Project & Machine Sales)

Worked for Alfa Laval India for 7 years, started 2 offices for them.Regional Manager - West for APV ( Now SPX) for 4 years, Country Manager Danfoss, India for 2 years, started Heating DivisionClearpack Singapore for 4 years, Sales of End of Line Packaging MachinesBusi. Dev. Mgr. ( F& B - Asia Pacific) Rockwell Automation for 3 YearsArea Sales manager, Alfa Laval Middle East at Dubai since last 4 years

Good Knowledge of Processing Machines, Automation & Packaging Machines Business.

Hobby : Enjoy meeting people & help them to excel in their life.

Person who is driving this initiative

What you will see here

• Why Dairy is important• Market for Dairy in Middle East• Products to Focus• Major Players• Opportunities for us• What is to be done

Beer & Beverages :

Particularly Carbonated drinks & Beer consumption has gone down in some matured markets.

Developing market also flattening compelling manufacturers to look for options.

Milk in different variants is good option & promising trend has been noticed

Why Dairy is getting attention

Japanese beer giant Asahi set to acquire Malaysian dairy

Coca-Cola Hellenic reveals interest in Pulpy Super Milky style dairy mixed drinks

Market – Middle East & North Africa

Major players are in Saudi, UAE, Sudan, Algeria, Egypt, Oman, Kuwait, Yemen, Iraq & Iran

Milk Production in MENA region has grown from 25 Mill. Tons in 2008 to 32 Mill. Tons in 2013

Milk Consumption grows from 35 Mill. Tons in 2008 to 46 Mill. Tons in 2013. Major milk products consumed are Fresh Milk, Flavored Milk, Cheese, Butter & Yoghurt in different forms.

Increasing Gap in Demand-Supply. Only 55% products are produced locally and others are imported from all over the world. This gap encourages companies to set up local plants to be competitive.

On the other hand, Oman & Saudi is exporting lot of Milk Products now that also enhances the chance of adding Capacity for Processing & Packaging locally.

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Dairy Brands in Middle East

What is consumed & Growth in 2013

1. Cheese : 5%

2. Fresh Milk : 6.8%

3. ESL Milk

4. Laban : 9%

5. Yoghurt : 7.7%

6. Flavored Milk : 6.8%

7. Condensed Milk

8. Butter

9. Ice Cream

10.Milk Powder

80% of dairy Sales comes from Fresh white milk, Laban, Yoghurt & Cheese

% Growth for Dairy products

Big Suppliers of World

• GEA, Germany : World Famous Food processing Company• SPX, USA : Taken over APV Food processing• Tetrapak, Swiss : World Leader after taking Milk processing

division from Alfa Laval• Bisignano, Argentina : Good references in South America• IDMC, India : A big player in India, Subsidiary of NDDB• REDA, Italy : Supplying Dairy processing equipment to

many companies all over the world.• HRS Funke :• JBT FoodTech :

• UAE - Sweedinox: PHE, Pump, Valves from Alfa Laval & Fabricate Tanks in Sharjah. Supplied 20+ Tanks to Tetrapak & SPX systems. Strong in Milk & Pharma.

• Saudi Arab - Tetratech : Tetrapak supplier, sales 25-30 machines in Dairies every year. Good market share in spares supply.

• Iran - DayaTeb :10-15 machines/ annum in dairy plants & beverages.

• UAE - Sondex : 5-6 machines/ annum in dairies.

Local Suppliers & their Capability

UAE

Population : 9.2 Million

GDP per capita : 46,200 USDNo. of dairies : 15, Few processors

use Milk powder to make milk.Most Packed Products : Fresh Milk,

Cheese, Laban & YoghurtMajor Players : Al Ain, Marmum,

IFFCO, Lacnor & Al Rawabi.Local Dairy Products production : 26%Still importing : 74%

Good Potential for Milk Processing Locally

* Data of May 2013

Oman

Population : 4 Million

GDP per capita : 20,130 USDMost Packed Products : Fresh Milk,

UHT Milk, Yoghurt, LabanMajor Players : Unikai, A’Safwah, Arla

& Modern Dairy factoryLocal Dairy Products production : 29%Still importing : 71%

Good Potential for Milk Processing Locally

Saudi Arabia

Population : 28 Million

GDP per capita : 25,300 USDMost Packed Products : Cheese, Fresh

Milk, UHT Milk, Yoghurt, LabanMajor Players : Almarai, Danone, Nadec

Fonterra, Danya, Nestle & SavolaLocal Dairy products production : 55%Still importing : 45%

Dairies in Kuwait, Yemen & Others

Major Players• KDD, Kuwait• ABC, Kuwait• SYC, Yemen• National Dairy & Food, Yemen• Modern Company for Food products, Yemen• Pasgianos, Sudan• Dal Food Industries, Sudan

Milk Production in Algeria, Cyprus & Egypt

Market in Algeria, Cyprus & Egypt

Why it is good idea for new customer to invest in Dairy

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Major customers in UAE & Oman

What your efforts can bring

• 10 Tanks / Silos• 25 Pumps• 100 valves

Customer also buys many other machines but you misses them as you do not have solution. Imagine you can offer Mixers/ Homogenisers/ Filling Machines & Packaging machinesrequired in same project.

• Pipe & Fittings • 15 Heat Exchangers• Small Spares & Services

This is like buying 230 AED Ticket of Ferrari World & make only 2 rides out of 12 famous rides available

Milk Processing Machines for Dairy Complete Turnkey Lines to make• Cheese, Processsed Cheese & Cream Cheese• Butter, Anhydrous Fat/ Ghee• Yoghurt, Set/ Drinking/ Stirred/ Frozen• Flavoured Milk• Sweetened Condensed milk

Stand alone Processing Equipments, • Plate or Tube Heat Exchangers, • Homogenisers, • Cream Separators• CIP System

Product Specific Equipment

• Ice Cream Freezers/ Freezing tunnels

• Butter making Machines/ churns

• Cheese making equipment/ Cooking kettle

• Milk Powder/ Baby Food making Plants

Butter/ Cheese Packaging machines

• EGLI, Switzerland

• Hochland Natech, Germany

• Bisignano, Argentina

• Alpma GmbH, Germany

• Benhil, Germany

• Melotte, France

I have good knowledge of suppliers & understanding of following Dairy Processing machines :

• Milk Chillers & Milk Pasteurisers

• Cream Separators & Cream Pasteurisers

• Pumps & Valves

• Butter Making Machines

• Milk Powder Mixers

• Homogenisers

• Butter Churns

• Milk Standardisation systems

Ice Cream Continuous Freezers

CIP System

Automation System

I have dealt with following Packaging machines :

Matrix Packaging, USA : Vertical Form, Fill & Seal Machine

ABC Packaging, USA : Case Packing, Palletisers & End of the line Pkg.

Lantech, USA : Palletisers & Pallet stretchwrapping machines

Ulma, Spain : Horizontal Form, Fill & Seal Machines

Soco Systems, Denmark : Case Packers & Erectors

Marden Edwards, UK : Overwrapping Machines

Apsol, Italy : Case Packers & End of Line

Dimac, Italia : Wraparound & Case Packers

High Dream, China : Multihead Weighers

Bisignano, Argentina : Linear & Rotary Filling Machines

Fuji Yusoki, Japan : Robotic Palletisers

Nichrome, India : Vertical Form, Fill & Seal Machines

THREE STEP STRATEGY to

INCREASE YOUR BUSINESS MULTIFOLD

Increase offerings in your Top Ten Customers

Increase your customer base by adding New Products in your basket.

Projects Business have Ups & Downs. Try to enter Consumables for Steady Growth

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Come 2021 YOU will power

the World of Industry in Middle East

South America's largest food processing company, Brasil Foods (BRF), has signed an agreement to open a $145m processing plant in Abu Dhabi, in the Middle East.

THANKS!!