Fruit juices will keep flowing for now

Despite unseasonal showers damaging crops, companies say inventory will see them through current season

The unseasonal rain and hail storm might have spelt disaster for farmers in Maharashtra and other parts of India but companies sourcing produce from them say they are covered for now.

Juice drink makers such as PepsiCo, Coca-Cola, Dabur and Manpasand (makers of the Mango Sip juices) say they are facing no issues in sourcing mango pulp, since supplies were procured months in advance, in keeping with the season that kicks in by March-end.

"Typically, the planning for the current season begins at least six months in advance. There are no issues for this season. The problem, if any, should kick in from the next season," said Dhirendra Singh, chairman and managing director, Manpasand Beverages. The company sources 2,000-3,000 tonnes of mango pulp from suppliers such as Allanasons, Jain Irrigation and Capricorn Food.

A PepsiCo India spokesperson also said the company did not expect sourcing problems for mango pulp and other fruit juice concentrates. The spokesperson did not indicate the amount of mango pulp sourced but industry executives peg the number at 4,000-5,000 tonnes, given that Slice (PepsiCo's mango drink) along with Maaza (from Coca-Cola) and Frooti (from Parle Agro) are the key players in the Rs 5,000-crore-a-year juice drinks market. Over two-thirds of this market consists of mango drinks alone, while the rest comprises orange, apple and allied fruit juices.

While orange pulp is imported by most manufacturers, mango pulp is sourced from India. The country is the largest maker of mango pulp in the world, producing close to 400,000 tonnes a year. Of this, almost 70 per cent is exported; the balance is used by local manufacturers, including juice and ice-cream makers.

Suppliers say they are yet to ascertain the damage to the mango crop in the wake of the unseasonal rain and hail storm a few weeks ago. Typically, the bulk of the beverage industry depends on the totapuri variety of mangoes, produced largely in the Chittoor district of Andhra Pradesh.

Initial reports from the state's horticulture board put the total mango output at 4.54 million tonnes, marginally higher than last year. However, sources said this could be revised down as the full extent of the damage to the crop is determined. Chittoor is in the Rayalseema district, one of the two regions (with coastal Andhra) accounting for 70 per cent of production and cultivation of mangoes in the state.

Somit Mukherjee, head (sourcing), Dabur India, said he saw no major impact on procurement of pulp from the state since unseasonal rainfall was not severe in the south. Dabur produces the Real brand of fruit juices.

Companies, sources said, were expected to begin planning for the next season in June, following which most would take a call on sourcing needs for the period. Informally, most players admitted they were counting on buffer stocks of the current season to bail them out in the next one.

Manpasand's Singh said: "Most suppliers do have inventory of the previous season, which can help in the event there is a shortfall. Right now, my attention is on the current season."