T S Nagarajan is Chairman, Aurofoods and President, Pasta Manufacturers Association. He spoke to indiamarkets of the need to promote pasta as an easy, tasty, low fuel food that can be used everyday.

indiamarkets: What is pasta? How is it different from vermicelli and noodles?
Nagarajan: Pasta is an Italian word to describe a cooked, extruded and dried wheat product. Some well-known varieties are macaroni, spaghetti and noodles. They are all the same product but they vary in shape and size. In India, pasta products are known as ‘vermicelli’ or ‘semia’ and have been in use for centuries.

indiamarkets: Please tell us about the pasta industry in India.
Nagarajan: Wheat production doubled in India between 1970 and 1990. Production of rice increased by 50 per cent and of coarse cereals by only 10 per cent. Since pasta is made of wheat, development of the pasta industry can help in utilising wheat, especially in rice-consuming areas – this was the view of the government in the 1970s and 80s when it granted of licences for setting up pasta plants. Following this, a large number of pasta plants were set up mainly in South India. However, because of low demand and lack of a generic publicity campaign, many had to close down other than a few brands.
Also, there were some other brands, which managed to expand the market – but this was done at high costs.

indiamarkets: What kind of a profile does the pasta industry have? How much pasta is produced in India?
Nagarajan: The vermicelli sector in India is much in the unorganised sector and makes up a fast expanding market with rising demand. Earlier, it was thought that better packing in the organised sector would help it take over, but that did not happen. There are big players in the sector like Maggie and Indo Nissin and there are big brands like Bambino, MTR and Savorit. However, they are very marginal.

Pasta producers are unorganised and make up a speciality sector. The production figures are 15,000-20,000 tonne per annum. The organised sector produces 35,000 tonnes per annum, which are mostly branded vermicelli. The unorganized sector produces 200,000 tonnes.

indiamarkets: What are the main issues in the pasta industry?
Nagarajan: The market for pasta in the unorganised sector is a potentially large one though at present, it is growing only at three to five per cent. So creating demand for the product is of utmost importance. In India, pasta is still perceived as Western food and is only used occasionally as ‘kheer’. Pasta consumption has risen in the US, which only recently acquired a taste for it. Similarly, the food can be made acceptable in India as well. Other than kheer, a host of other tasty dishes can be made from pasta. Concerted action from the industry is needed.

indiamarkets: What does the Pasta Manufacturers Association aim at?
Nagarajan: Pasta makers in South India have formed an association called the All India Pasta Manufacturers Association “to promote the usage of pasta generically on a far greater scale than at present both at home as well as restaurants/snack bars”. Pasta can also be used as fast food as it is a pre cooked and can be served quickly. It also uses less fuel than other foods.

indiamarkets: What does the association plan to do to increase pasta consumption?
Nagarajan: The association will start a generic campaign apart from brand promotion to tell people about the advantages of pasta and promote it as Everday Food. Visesh Advertising has done a profile of this campaign. This campaign will begin in a month or two. The campaign will be organised through the press as well as other media. It will be on the lines of the milk and egg promotion campaigns. The propaganda will be backed by sales of the product through mobile vans. We also plan tie-ups with hotels and restaurants where people can actually taste pasta. Here, the ready dish will be sold.

Also, the government is willing to support the campaign. It is currently favourable to the idea.

Vermicelli will be taken to the consumer. We are thinking of using the café approach – which means we will introduce to the consumer ten different varieties of pasta. The point of consumption should coincide with the point of purchase.

indiamarkets: Is there any action you expect from the government to help this segment of the food industry?
Nagarajan: Food manufacturers should stop expecting the government to help them. What is important is to make any business activity viable. If the market demands a product, businesspersons should go ahead and show that they can do it. It is alright to urge the Government to provide a level playing field, but it is not good business ethics to ask for assistance.

indiamarkets: Is it a uniform market or are there any regional preferences for the product?
Nagarajan: All vermicelli units are in South India. It used to be produced as an extension of flour mills. There is great potential for selling vermicelli in North India, but long distances make transport costs very high. It is also a large volume product.