FSSAI's New Training Programs Boost Food Safety Across India

By Author

Published on November 2, 2023

In a decisive move to counter the increasing concerns over food safety, the Food Safety and Standards Authorities of India (FSSAI) is taking significant steps towards ensuring the health and well-being of the Indian populace. Amidst frequent reports of adulterated food and compromised hygiene standards, FSSAI's recent actions come as a welcome development, especially in educational institutions like schools and university hostels, where food safety has often been a pressing issue.

In an effort to promote safe food practices, the FSSAI has urged states and union territories across India to impart specialised training to the staff managing food sections in educational institutions. This directive was emphasised by Kamala Vardhana Rao, the CEO of FSSAI, during the 42nd Central Advisory Committee (CAC) meeting held in Pahalgam, Jammu and Kashmir. His call for action primarily aims to ensure that students receive hygienically prepared and safe food.

A key component of these new initiatives includes comprehensive training for the food handlers, a strategy to increase public awareness about the importance of food safety. The FSSAI also plans to expand and upgrade the network of food testing laboratories throughout the country, a move essential for maintaining stringent food safety standards.

The CEO's directive also extends to the close monitoring of milk products and sweets, particularly in light of the upcoming festive season. This vigilance is part of FSSAI's ongoing nationwide milk survey, which encompasses 766 districts, reflecting the Authority's commitment to ensuring food quality.

In addition to these measures, FSSAI is actively working on its ambitious project of modernising 100 street food hubs under the Eat Right India Initiative. This initiative focuses on certifying “Clean Street Food Hubs” and has already accredited about 110 hubs, enhancing the safety and hygiene standards of street food vending across India. Madhya Pradesh has notably taken a lead in this initiative, making significant strides in modernising numerous street food hubs.

Another critical aspect of FSSAI's action plan includes aiding street vendors in serving healthy, hygienic food within well-organised and infrastructurally sound areas. Technical support, setting benchmarks, and ensuring compliance are also part of this comprehensive approach.

The discussions and decisions made at the CAC meeting, attended by over 50 officials, including Commissioners of Food Safety, FSSAI representatives, and various stakeholders, underscore the holistic approach FSSAI is adopting to elevate food safety standards.

In a recent development, FSSAI has streamlined the process of obtaining food safety licences. This initiative, highlighted by District Collector Kranthi Kumar Pati, includes an online route for licence acquisition with a nominal fee of ₹1,000, simplifying the procedure for food business operators.

FSSAI's multifaceted strategy to revamp food safety and hygiene standards in India marks a significant advancement in the country's journey towards ensuring a healthier future for its citizens.

ITC Hotels Demerger Could Lead to Passive Outflow of USD 180 Million: Nuvama

By Nishang Narayan

Published on January 8, 2025

Following the demerger of ITC Hotels from its parent company, ITC Ltd., domestic brokerage firm Nuvama has predicted a passive outflow of approximately USD 180 million. This corporate action will have a notable impact on major indices such as Nifty50 and Sensex, with expected passive outflows of USD 110 million and USD 70 million, respectively.

Nuvama's analysis suggests that assuming ITC’s share price remains stable around INR 260 at the time of exclusion, the passive flow for Nifty50 will amount to USD 110 million (with a weight of 23 basis points), while Sensex will experience an outflow of USD 70 million (with a weight of 28 basis points).

A special price discovery session was held to adjust ITC’s share price, resulting in an INR 26 adjustment on NSE and INR 27 on BSE as the stock began trading ex-demerger on January 6. The demerger ratio of 1:10 (one share of ITC Hotels for every 10 shares of ITC Ltd.) has led to the valuation of ITC Hotels at approximately INR 260 on the Nifty50 indices and INR 270 on BSE indices.

Until ITC Hotels is officially listed separately, it will be treated as a "dummy entity" with a fixed price, and the stock will be held at this value temporarily. According to Nuvama, ITC Hotels is expected to be listed within the next 30-40 days. Following the listing, ITC Hotels will be removed from all NSE and BSE indices at its last traded price, effective at the opening on the listing date, with a three-day adjustment period. If the stock hits circuit limits, the exclusion will be postponed by two trading days for each occurrence.

Nuvama also noted that ITC Hotels may qualify for inclusion in the MSCI Global Small Cap Indexes, but this will only happen if the stock is listed within 20 working days after the record date of the demerger.

ITC Demerger: Special Session Held to Discover ITC Hotels Share Price

By Nishang Narayan

Published on January 7, 2025

In a landmark move, ITC Ltd has begun its long-awaited demerger of ITC Hotels, with BSE and NSE conducting special pre-open trading sessions today to facilitate price discovery for the hotel business. This strategic restructuring allows ITC Hotels to operate independently, focusing exclusively on hospitality.

During the session, ITC Hotels' share price will be computed using ITC Ltd's closing and adjusted prices, incorporating a 1:10 demerger ratio. Analysts predict the shares to list between ₹150 and ₹200, with some forecasts suggesting a range of ₹200 to ₹300 based on valuations and growth prospects.

As of today, ITC Ltd's 36 lakh shareholders will receive one ITC Hotels share for every 10 ITC shares held. While ITC Hotels shares won’t officially list yet, a dummy ticker will represent the stock on indices like Nifty and Sensex until formal listing in a few weeks.

ITC retains a 40% stake in the demerged entity, with the remaining 60% distributed among shareholders. Analysts from Ambit Capital and Nomura see this as a step toward value unlocking, with ITC Hotels poised to capitalize on India's luxury hospitality sector. Asset-light models and a pure-play focus will drive future growth and profitability.

ITC’s stock price is expected to adjust downward by ₹22–₹25 due to the demerger. Experts believe this could be a temporary dip, providing an opportunity for retail investors to accumulate shares of ITC Hotels. Meanwhile, ITC Ltd aims to sharpen its focus on its high-margin FMCG business, which has seen substantial EBITDA growth.

Nomura analyst Mihir P Shah remarked, "The demerger unlocks significant value, allowing ITC Hotels to access equity and debt markets for future growth while benefiting from India's luxury hospitality sector’s re-rating."

While ITC shares ended last week at ₹482 on the BSE, underperforming over the past year, this demerger sets the stage for a potential re-rating as ITC pivots toward a leaner business model with enhanced focus on profitability.

(Disclaimer: The views and opinions expressed by experts are their own and do not represent the views of Hospitality News India.)

ITC Increases Stake in Oberoi Group and Leela Mumbai Ahead of Hotel Arm Demerger

By Nishang Narayan

Published on December 20, 2024

In a strategic move ahead of the January 1, 2025, demerger of its hotel business, ITC has increased its stakes in two major players in the Indian hospitality industry. ITC has raised its shareholding in EIH Ltd, the parent company of Oberoi Hotels, to 16.13%, and in HLV Ltd, which owns The Leela Mumbai, to 8.11%.

As of September 2024, ITC held a 13.69% stake in EIH. By acquiring an additional 2.44%, equivalent to 1,52,32,129 equity shares, ITC now commands a 16.13% stake in the company. Similarly, ITC’s stake in HLV Ltd has increased from 7.58% to 8.11%, following the purchase of 34,60,829 equity shares.

In a regulatory filing, ITC announced, “...the company today has acquired 2.44 percent of the share capital (comprising 1,52,32,129 equity shares of INR 2 each) of EIH Ltd and 0.53 percent of the share capital (comprising 34,60,829 equity shares of INR 2 each) of HLV Ltd, from Russell Credit Ltd, a wholly owned subsidiary of the company.”

This move is seen as a part of ITC’s preparation for the demerger of its hotel business, ITC Hotels, from its parent group. The demerger, set to take effect from January 1, 2025, is expected to unlock greater value for ITC’s stakeholders and enhance its focus on core operations.

With the increased stakes, ITC is cementing its presence in the premium and luxury hospitality segments, strengthening its relationship with iconic brands like Oberoi Hotels and The Leela Mumbai.

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