India: Forging Ahead

 
India is the latest favourite in the world growth stakes and, after China, the second Asian nation with a population of more than a billion people. Of course, the Indian economy ranks among the poorest in the world. However, India is not simply poor. On the contrary, there has been an explosion of economic growth over the last ten years. Today, over 200 m Indians belong to the burgeoning middle class – and they are full of keen expectations as to what the future has in store.
 

 
In culinary terms, the subcontinent is characterised by an immense variety of wonderful aromas – even on a very basic level. Not to mention a vast spectrum from street food to fine dining at prices from 20 to 2,000 rupees per meal (a good €0.30 to almost €35).
 
This special feature is dedicated to the culinary trend of Indian cuisine. It is meant to be a source of information as well as inspiration – with absolutely no claim to completeness. We visited Bangalore, Goa and Mumbai, researched, photographed and brought back with us a huge array of intensive impressions. Next to our reports, three additional stories provide further insight.
 
The full article contains the following stories:
 
The Tiger vs. the Dragon
 
More than ever, the eyes of the world are focusing on the two giants, India, the Tiger of Asia, and China, the Dragon of Asia. These monster economies are two of the fastest growing in the world and comprise nearly 40% of the world’s population. The two countries also have another asset for fast growing economies - labour, which is both skilled & cheap. Whilst they share some similarities,this article will focus on the many – often quite major – differences to be aware of when exploring options with the Tiger or the Dragon. By Rimon Bitar.
 
For the past five years, the Dragon has enjoyed the larger share of the world’s investment whilst the Tiger has been left on the sidelines. For instance, as a percentage of its GDP, China’s direct foreign investment inflow is three times greater than India’s. Many believe that India is starting to catch up as a place for global companies to locate to. So far India’s most exportable product is service, whilst China’s is manufacturing. 6% of world exports come from China, whilst India accounts for only 1%. However, India is starting to pick up on the manufacturing front, which will add to the growth in its GDP.
 
25% of the population of India live in poverty, whilst in China only 10% fall below the poverty line. No country in Asia has been raised out of poverty without a manufacturing boom. India is unlikely to be an exception. The Dragon’s advantage is that it has found the riches to be gained from importing and exporting. On the other hand, India has the youngest population on earth. Its middleclass number as many as the population of the United States. That indicates that the Tiger will not have a shortage of labour in the future. Moreover, India will have plenty of customers, who can afford buying products and services.
 

 
Food away from home
 
At $92.3 bn dollars, China’s foodservice volume is more than five times that of India, which amounts to $16.7 bn. The possible strategies for either country boil down to 1) Follow the multi-nationalchains; 2) Follow the tourists; or 3) Follow the local markets. Some of the differences that impact on current and future opportunities in China and India are size of families, incomes and savings. China has an average family size of 3.7, whilst India has an average of 5.6. Chinese consumers have almost twice the savings of their Indian counterparts. Finally, the average Chinese makes almost three times more in wages than the average Indian consumer.
 
In the past 10 years, many western restaurants have entered the market and organised their supply chain network. There will be more in future. Since the tourism sector is increasing in India, itwill allow for more and more growth and that will define the foodservice industry.
 
Chain restaurants
 
Street food-markets are very important in both cultures but safety concerns in China are changing behaviour. As China has begun to impose food safety regulations, the many international chains have come to represent safe food. In India change is slow to come. But people are starting to implement safety regulations in more upmarket restaurants. The inflow of chain restaurants has been tremendous in China. There has been little such influx in India but it is beginning to pick up. For example, McDonald’s has around 100 outlets in India, but it has over 770 outlets in China. This alone indicates that fast food chains are becoming more popular in urban India, but they are much more popular in urban China. In addition, a greater variety of chains have entered the Chinese market giving the Chinese consumer a wider choice.
 
Rush into Restaurants
 
The restaurant trade is seen as the next big story in India as the industry gears up to cater for the rising expectations of food lovers. Savvy investors, especially those who are also food enthusiasts, are snapping up stakes in their favourite restaurants. National and international names are hitting the expansion trail: Dr. Uday Pai, New Delhi, offers an overview of players, plans and projects.
 
Top 5 US-Brands (Units)*

1. Pizza Hut (127)
2. McDonald’s (110)
3. Domino’s Pizza (85)
4. Subway (76)
5. KFC (21)

*in India at the beginning of 2007
 
An Explosion of Flavours
 
Anybody who wants to become acquainted with Indian cuisine has to learn one important lesson first. There is, in fact, no such thing as ‘Indian cuisine’. Instead, a multitude of regional traditions in cooking reflects the vastness and diversity of the country and, as in the past, even today’s cooking styles vary significantly – from Kashmir to Rajasthan, from Punjab to Kerala or Tamil Nadu in the south. What all regional cuisines have in common, however, is the abundant use of flavours.
 
For Locals Only
 
Naturally, foreigners are served in Nandhini, too. However, it is only seldom that they stray there. Founded in 1989, the highly successful fullservice brand with six restaurants and three hotels is based in Bangalore. Nandhini specifically targets the domestic middle class. Founder N. Ananda has big plans: another ten outlets are planned for this year and, to support the expansion programme, he recently opened a central kitchen.
 
Focus: HoReCa Customers
 
A visit to one of the two Metro C&C stores in Bangalore, which opens seven days a week from six in the morning to ten in the evening. Opened in October 2003, it has a surface area of 10,000 sq m and offers 18,000 articles, including office furniture and workwear, in around 20 sections – 8,000 food and 10,000 non-food items. “Less than five percent is imported,” says Floor Manager R. K. Joshi. Metro C&C is targeting business customers like hotels, restaurants, caterers, grocery shops and other small business. The management pays particular attention to the foodservice group.
 
In the Fast Lane
 
The motivation to expand is a powerful one. The Leela hotel group, founded 19 years ago, shares the upper echelon of the domestic hotel business with its big fellow players Taj and Oberoj. But they still want to move further upwards, right to the top; to the very pinnacle of the country’s luxury segment.
 
With Huge Strides into the Future
 
Blue Foods Pvt. Ltd. is the leading multi-concept player in the Indian chain-restaurant business. Founded in the autumn of 2000, it already had over 50 locations in operation by the end of 2006 – afront-runner in developing concepts, professionalising the operative processing and fast expansion. The corporate focus: on the needs and the wishes of middle and upper-middle income consumers.The latest joint venture: large food courts in very big shopping malls.
 

 
An Icon of Indian Cuisine
 
He has been cooking for Taj for 32 years and, for the last 22 years, has been Executive Grand Chef of the exclusive Taj Mahal Palace & Tower in Mumbai: Hemant Oberoi is the top culinary authority not only for the Taj Hotel Group but also for many food professionals worldwide. There is little chance of finding him at home – he travels for more than half of the year on business for Taj, and as an ambassador of Indian cuisine. Both in India and abroad, he is an intermediary between the culinary worlds of East and West.
 
The British Dimension
 
European adaptations of Indian cuisine have provided Britain, thanks to its long colonial links with the sub-continent, with its most prolific foodservice category. While they make up a fragmented and largely unbranded market, purveyors of Indian-style eating-out continue to evolve, innovate and influence mainstream menus. Bruce Whitehall reports.
 

 

 
| 24 April 2007 |