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TECHNOLOGY

Blendhub’s platform #CloudBlending enables multi-localised production
Tuesday, 08 January, 2019, 08 : 00 AM [IST]
Our Bureau, Mumbai
With the Indian processed food industry estimated by TechSci Research to be worth $50 billion currently, and poised to double by 2025 and reach the $200-billion mark in the next decade, the country is among the world’s fastest-growing markets and is regarded the ultimate prize of the food and beverage industry by global food manufacturers.

The growth is attributable to India’s rapid economic development, improved infrastructure, stable power supplies and the growing consumer market.

Moreover, India’s young population is aware of the importance of safer and better nutrition and has led the industry to grow in specific segments.

Today’s consumers are looking for branded and value-added food products, often following healthier and functional trends.

However, global food brands have found it difficult to foray into the sector, due to the high tariffs and cultural differences, but are overcoming these challenges through #CloudBlending, Blendhub’s platform for the multi-localised production of powder-based food and nutrition.

The #CloudBlending platform
As the demand for more affordable, safer and higher-quality food products increases, #CloudBlending enables food brands to reach the Indian market at minimum cost, based on a simple pay-per-use model and localised manufacturing.

As of today, Blendhub has two manufacturing plants in India - one in Chennai, dedicated to domestic production, and one in Sri City, aiming at exports to foreign markets. Both of these replicate Blendhub’s internationally-certified processes for manufacturing, as do their other hubs in Europe and the Americas.

Frosty Boy
Early last year, Frosty Boy, a global dessert and beverage player, teamed up with Blendhub to avail of the services of #CloudBlending for multi-localised production in India. The partnership is aimed at delivering exceptional quality on one hand and maintaining cost effectiveness and intellectual property on the other.  

“Our strategic relationship with Blendhub has enabled us to enter the Indian market without compromising the high-quality food standards that we offer to our customers globally.  Blendhub’s replication model allows us to expand together beyond India and enter other markets worldwide while maintaining our intellectual property,” stated Dirk Pretorius, chief executive officer, Frosty Boy.

Henrik Stamm Kristensen, chief executive officer, Blendhub, envisaged a bright future for food and nutrition brands in India. He stated, “We are witnessing a game change in India. Foreign brands are coming to us to enter the Indian market without having to invest in new assets.”

“At the same time, local companies benefit from our services as a safe, cost-effective and viable way to export to other regions while profiting from favourable local sourcing,” he added.

Scaling production, improving recipes with local raw materials and know-how, and optimising sourcing are the factors that lead to the best end price for food brands and products. By streamlining the end-to-end supply chain, #CloudBlending creates value for all kinds of players in the food industry, making product launches ten times faster and cheaper than traditional deployments.

In this model, the company can support a start-up by developing an entirely new product from ideation and introduce it to local and international markets in just a few months.

A bigger brand can use the platform to multi-localise production, manage production peaks or innovate with new products without committing their current production centres and capacities.

As Blendhub gives access to India, the country can benefit exponentially from localising manufacturing for the global food and beverage industry and from the enhanced export capabilities. Expected growth must be accompanied by food safety, food quality and affordability. Blendhub can provide it all.
 
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