Go To Guide For Food Start-Ups: Fostac Plus Course by Fssai
Go To Guide For Food Start-Ups: Fostac Plus Course by Fssai
Go To Guide For Food Start-Ups: Fostac Plus Course by Fssai
• Indian Food
• Start-up Needs
• FSS Act & Regulation • CODEX
Ecosystem • ISO & GFSI
• Licensing &
• Regulations Registration
•Farm to Fork
• Food Certificate • Packaging & Labeling
•Major Trends
• Government • Advertisement &
•Sector Trends Claims
Schemes
•Sector Challenges • Import Provision
• Food Parks
• Schedule IV
• Incubators &
• Overview of Standards
Accelerators •Regulation on
Nutraceuticals, Organic
• Funders Products
Food Industry
Ecosystem
Indian Food Ecosystem
Regional Tastes
India's
Increasing Gourmet:
organic food
Digitally affordability valued at
Cloud Young market to Nuclear
IoT Blockchain active and USD1.3 Bn
Computing Population increase by 3 families
customers disposable growing at
times by
income 20% CAGR
2020
Sector Trends
Food grains
Livestock
Vegetables
• 2nd largest producer of fruits and vegetables
Fruits &
Marine
• Total fish production 11.41 million metric • Production: Vegetables: 17 % of the global
tonnes (2016-17)
🐟 Fruits: 14 % of the global
🍒
• World’s 2nd largest egg producer (78.4
Poultry
Dairy
• 3rd largest producer of broiler meat (3.8 Mn • Cooperatives dominate dairy sector
T)
Health &
FMCG
be Packaged food, aerated soft drink, Packaged
• USD 4.8 Bn growing at 5%. drinking water, Alcoholic beverages
Sector Challenges
Food grains
clearances from
Livestock
Vegetables
• Only 23% is processed • Processing units are primarily SME & MSME
Products
Fruits &
Marine
Dairy
• Lack of procurement of standard quality of milk
chilled/frozen one
• Only 6% in poultry products are processed
• Lack of cold chain infrastructure
• Costly poultry feed • Only 35% milk is Processed
Health &
Pharma
Capital
Location
Sector Knowledge
Infrastructure/Reso
urces
Legislations and
Regulatory
Requirements
Regulations
Accelerators
• Programs usually have a set timeframe in which individual companies spend anywhere
from a few weeks to a few months working with a group of mentors to build out their
business and avoid problems along the way.
Incubators
• Startup incubators begin with companies or even single entrepreneurs that may be
earlier in the process and they do not operate on a set schedule.
Pre Series A/ VC funds Financial investors; bring speed and scale to the game. If investor is
Series A sector focused, they can add value in business development and GTM
strategy as well; heavily involved in building a team and ensuring
growth
Series Select VC funds Financial investors; focus on profitable growth, creating an
B/Series C and PE funds institution with processes and ensuring professional talent starts
operating the daily grunt work
What do Equity Funders Look for in
Start ups
• Vision and experience of the founders
-short term money making v/s creating long term enterprisevalue?
- do they have the caliber to execute the vision? Are they adaptive to change/feedback?
• Scalability Potential
- can the startup scale 10x-100x in the next 5 years?
• Disruption quotient
- product/consumer behaviour/channel optics – what’s the newness?
• Defensibility or Differentiationqualities
- how can the startup compete with larger players/faster players?
• Exits (and returns)
- how can the startup give the investor an exit? how much return can an investor
make?
What if you don’t Fit into Equity
Funding
• Evaluate whether your business needs equity capital or not – unit economic
profitability, customer awareness costs and working capital are often drivers for equity
consumption
• Equity is the most ‘expensive’ form of capital with steepest return expectations and
investors protect their rights in companies in an iron-clad manner – are you up for the
drill?
• Explore debt as an option after the friends and family round of investment, if your
startup is not ‘equity friendly’
• Collateral free loans (CGTSME) are available to startups in addition to many other fiscal
benefits discussed earlier
• Always maintain financial discipline, 3 golden rules:
• income>expenses
• collections>payables
• never use short term capital (working capital) to create long term fixed assets
Areas of Regulatory Concern
(Other than FSSAI)
NOC, and adequate approvals from Excess emission of Air pollutant,
Municipal Authorities usage of plastic bags etc
Maintain efficient logistics chain for food Storing perishable products – raw material
delivery or finished goods
Labour Laws Municipal Laws Corporate Laws Tax Laws Property Laws
Milk and
Fruit Products Milk
Order, 1955 Products
Order, 1992
Any other
Prevention of
Food order under
Safety and Essential
Food
Commodities
Adulteration Standards Act, 1955
Act, 1954
Act, 2006 relating to
food
Food Safety and Standards Act
General Principles of
Chapter III Food Safety Chapter IX Offences and Penalties
Special Responsibilities
Chapter VI Chapter XII Miscellaneous
as to Food Safety
Food Safety and Standards
Regulations under FSS Act
Section 92 (1)- provides Food Authority to make regulations. Initially Six
principal regulations have been notified in the gazette of India on 1st
August, 2011 and came into force on 5th August, 2011
Licensing and
Registration
Regulations
Chapter II
Chapter I
(Procedures –
(General -
Registration &
Definitions)
Licensing)
Schedule 1 Schedule 3
This is required for small This is required for mid sized This is required for large businesses. Eligibility criteria are as
business or all businesses or companies Eligibility criteria is as follows
Start- Ups. Eligibility criteria is follows for different kind of
as follows for different kind of businesses. (i) With an turn over above Rs 20 Crores
businesses. (ii) Dairy units including milk chilling units equipped to
(i) with an annual turnover handle or process more than 50,000 litres of liquid
between Rs. 12 lakhs to 20 milk/day or 2500 MT of milk solid per annum.
(i) with an annual turnover not
crores (iii) Vegetable oil processing units and units producing
exceeding Rs. 12 lakhs
vegetable oil and refineries including oil expeller unit
and/or whose (ii) production capacity of food
having installed capacity more than 2 MT per day.
(ii) production capacity of food (other than milk and milk
(iv) All slaughter houses equipped to slaughter more than
(other than milk and milk products and meat and meat
50 large animals or 150 or more small
products and meat and meat products) does not exceed 500
animals including sheep and goats or 1000
products) does not exceed kg/litres per day or
or more poultry birds per day.
100 kg/litres per day or
(iii)procurement or handling and (v) Meat processing units equipped to handle or process
(iii)procurement or handling and more than 500 kg of meat per day or 150 MT
collection of milk is up to collection of milk is up to 5000
litres of milk per day or per annum.
500 litres of milk per day (vi) 100 % Export Oriented Units.
or (iv) slaughtering capacity is (vii) All Importers importing food items including food
(iv) slaughtering capacity is 2 between 2-50 large animals or ingredients and additives for commercial use.
large animals or 10 small 10-150 small animals or 50- (viii) Food Business Operator operating in two or more
animals or 50 poultry 1000 poultry birds per day states.
birds per day or less
Registration Procedure
Licensing Procedure
Supporting Documents and Fees
• FLRS is being used by 5 Regional Offices of FSSAI and several State Governments for processing
and generation of Licenses/ Registration Certificates.
• FLRS allows FBOs to check their premises eligibility according to the location or the activity being
conducted on that premises. The link is as follows: https://foodlicensing.fssai.gov.in/index.aspx
Food Safety and Standards (Packaging and
Labeling) Regulations, 2011
Packaging and
Labeling
Regulations
Chapter II
Chapter I (General
(Packaging and
- Definitions)
Labelling)
Packaging Requirements
Unfit for human
Consumption
Canned Products
General
Requirements
Containers made of Plastic a
materials
Edible Oil/fat
Product Specific
Requirements Fruits & Vegetables
Drinking Water
Labelling Requirements
1. Name of the food
3. Nutritional information - The nutrition information for a particular food article is declared per
100g or 100ml or per serving of the food on the label
13. FSSAI license number shall be displayed on the principal display panel
▪ The Brand owner shall display the FSSAI logo and his license number on the
label of food package.
▪ In case of imported food products, the importer shall display FSSAI logo and
license number along with the name and address of importer on a sticker to be
affixed before customs clearance.
Food Safety and Standards (Food
Products Standards and Food
Additives) Regulations, 2011
There are three parts in these regulations
• There are 13 product categories and standards for various food products
including food additives have been provided
• The second part of the Regulation deals with use of food additives in various
foods and specifies their limits- Appendix-A
• The third part prescribes the microbiological requirement for various food
product categories- Appendix-B
Food Safety and Standards
(Prohibition and Restriction for Sale)
Regulations, 2011
• This Regulation deals with the restrictions and Prohibitions on sale of certain
food products. Contains 3 clauses
1) Sale of certain admixtures prohibited
• The Regulation covers 15 products and 22 conditions of sale that are either
restricted or prohibited.
Food Safety and Standards (Contaminants,
Toxins and Residues ) Regulations, 2011
This Regulation contains 3 parts that specify the limits in various foods.
• METAL CONTAMINANTS: This part prescribes the Maximum Limits
for 9 Metal Contaminants viz. Lead, Copper, Arsenic, Tin, Cadmium,
Mercury, Methyl Mercury, Chromium and Nickel for various foods and
commodities.
• CROP CONTAMINANTS AND NATURALLY OCCURING TOXINS:
This part specifies the limits of 5 Crop Contaminants viz. Aflatoxin,
Aflatoxin M1, Ochratoxin A, Patulin and Deoxynivalenol for various foods;
limits for 4 naturally occurring toxins and 3 Polychlorinated biphenyls
(PCBs)
• PESTICIDE RESIDUES: This part specifies the Maximum Residues
Limits (MRLs) 149 Pesticide Residues and tolerance limit of 4 Antibiotics in
sea foods.
These regulations are being amended to prescribe MRLs for more number of
pesticides, Antibiotics and other Pharmacologically active substances.
Food Safety and Standards (Health
supplements, nutraceuticals, food for
special medical purpose, functional food
and novel food) Regulations, 2016
https://fssai.gov.in/home/fss-legislation/fss-regulations.html
IFS Quick View
• The IFS Quick View tool provides a single platform integrating all Food
Safety Standards and Regulations on safety as well as quality of food items
• FSSAI has developed a “Manual for Food Imports” with minute &
simplified details of whole processes & provisions related to filing the requisite
information to obtain license, deposition of fees, attending the joint inspection
and sampling process etc. so that food import clearance may take place with
greater ease
• Code of practices
http://www.codexalimentarius.org/standards/list-of-
standards/en/?provide=standards&orderField=fullReference&sort=asc&num1=CAC/RCP
• Guidelines
http://www.codexalimentarius.org/standards/list-of-
standards/en/?provide=standards&orderField=fullReference&sort=asc&num1=CAC/GL
54
Difference between ISO 22000 and the GFSI
The International Organization for The Global Food Safety Initiative (GFSI)
Standardization (ISO) is an international standard follows collaborative approach to bring together
setting body composed of representatives from international food safety experts from the entire
various national standards organizations. supply chain of food.
GFSI is not a Certification Programme in itself,
The ISO 22000 family of International Standards neither does it carry out any accreditation or
addresses food safety management. certification activities.
Certification to a GFSI- recognized certification
ISO 22000:2018 sets out the requirements for a
programme is achieved through a successful third-
food safety management system and can be
party audit against any of the certification
certified to. It maps out what an organization
programmes that have been recognized by the GFSI.
needs to do to demonstrate its ability to control
food safety hazards in order to ensure that food is
safe. It can be used by any organization regardless Certification Programme Owners (CPOs)
of its size or position in the food chain. recognized by the GFSI:
Thank You