22: Jean-Noël Gracie: Connecting the Indian agricultural fields with French expertise in animal feed
Who is Jean-Noël Gracie? What is role of Techna in India's economy? How is the feed market in India? What are key trends, challenges and vision ahead in agricultural sector?
📝 Words: 1938 | 🕰️ Estimated Reading time: about 8 mins
👋Hey Kula Readers,
This week we are bringing you the story of Jean-Noël Gracie, Managing Director at Techna India. Discover his exclusive insights and unique perspectives on the Indo-French agricultural business landscape!
Jean-Noël Gracie explains how big and unique is the agricultural opportunity of India! He is a distinguished example of how a French national has embraced the agricultural industry in India, understanding the key challenges and truly adapting the French strategy to India’s local needs!
Key Takeaways
💪🔝Inspiring Journey of Jean-Noël Gracie: A curious mind open to exploring and embracing culture and leveraging key networking opportunities has enabled Jean-Noël Gracie to open, expand, and grow a French business in the agricultural lands of India.
🔆🇮🇳 Agricultural market in India: With the world's largest population of livestock, the Indian agricultural sector is predicted to increase to US$ 24 billion by 2025. India is the highest milk producer and ranks first position in the world contributing 24.64% of global milk production in the year 2021-22 along with the world's second-largest producer of white leg shrimp
Steps for the future: Business profit margin, Climate change/sustainability, Differences with Europe, complex quality/regulations compared to the EU, and heavy antibiotic use in animal feed are the key challenges to improve.
Jean-Noël Gracie’s Journey
Jean-Noël completed his Baccalauréat in 2014 in France. With a curious mind, he set foot in India in 2015 to complete an internship as an Export Assistant in the Delhi office of Thales for two months.
After a short sprint in India, Jean returned to France to complete his education. He was accepted into the reputed Programme Grande Ecole of ESCP Business School. Impressed by his previous time in India, Jean-Noël happily returned to India to continue his journey with the Indian Institute of Management, Kozhikode (IIMK).
👨🏻🎓 After graduation, Jean-Noël worked for two years at IBM in Paris. In 2020, as a young French citizen he discovered the option of V.I.E.
The V.I.E (Volontariat International en Entreprise) is a French program that allows young Europeans aged 18-28 to work abroad for 6 to 24 months, gaining valuable international experience in a supported environment. It offers participants a monthly allowance, and protection and often leads to employment opportunities while helping companies expand their global presence across 135 countries.
As a part of V.I.E, Jean-Noël was offered the position of Financial, Logistics & Regulatory Manager - South Asia Zone with Pierre Fabre based in Mumbai. But well, why would one select India over the comfortable life in Paris?
Well as explains Jean-Noël,
“It was a natural choice, since I had already spent time in India and I had developed a strong connection with the country.”
🤓 After completing V.I.E, Gracie found himself drawn to India, immersing himself in the country's culture and business environment. His research, networking, and urge to stay in India, opened new doors of opportunities at Techna. In March 2022, Jean-Noël started as Head of Operations for Techna and in 2023, took over all the responsibilities of Techna as Managing Director.
Techna: Pioneering Sustainable Animal Nutrition
The vision of Techna lies in answering a simple question, “How to feed the animals positively and sustainably?”
Today, around ~60-65% of the cost for farmers is related to the feed. Techna supports feed manufacturers in optimizing the feed for a better nutrition more sustainable. Techna celebrates this year its 60 years and is present in around 50 countries through 11 subsidiaries across Europe, North and West Africa, and Asia providing expertise in livestock farming techniques, precision nutrition, and natural health solutions for both animal and plant production.
Techna’s key offerings include creating essential oils to enhance animal health, consultancy services and home-made software to maximise efficiency and enhance animal health.
Recruitment of Jean - A real French-Indo bridge
Globally, Techna operates with a team of 300 employees, including expert nutritionists and formulators. The company has established subsidiaries worldwide, with most being over 20 years old. Around two years ago, Techna decided to grow and expand in India.
Jean-Noël’s primary responsibility was to create a business from scratch. His experience and understanding of both cultures have been instrumental in establishing Techna's presence in India, handling the legal, accounting, and partnership aspects.
His role extends beyond managing operations; he serves as a bridge between the French and Indian business cultures, facilitating a smooth integration of Techna's solutions into the Indian market.
Currently, the Indian operation has four employees and relies on technical expertise from France. Gracie's leadership and Techna's innovative solutions position the company as a driving force in addressing the challenges of sustainable agriculture and precision nutrition in India.
Techna's goals for India include growing its customer base, reaching the break-even point, and eventually investing in a local plant and technical team.
Why has Techna decided to open in India now?
In recent times, European interest in India has surged due to timely and transparent success stories, prompting companies to expand and control their operations. Despite political challenges, a new wave of diverse and innovative companies is entering the market, highlighting the immense potential of the Indian market.
On top of that, the Indian agricultural market is a huge golden opportunity to ignore.
According to Inc42, the Indian agricultural sector is predicted to increase to US$ 24 billion by 2025. The world’s sixth largest, Indian food and grocery market with retail contributes to 70% of the sales. As per the Estimates for 2023-24, total foodgrain production in the country is estimated at 148.5 million tonnes.
The sector faces several challenges, one of which is a heavy reliance on antibiotics
Techna aims to address these issues by providing natural and sustainable alternatives to antibiotics, leveraging its expertise in essential oils and additives. The Indian market offers opportunities for Techna, with poultry, dairy, and shrimp farming being the major industries.
Techna's Strategic Expansion in India
Techna is expanding strategically in India by leveraging its existing knowledge and infrastructure while significantly adapting to the local market. Their approach includes deploying two representatives in the east and one in the west, each specializing in key industries such as dairy, aquaculture/shrimp, and poultry.
Industry-Specific Presence 👇:
Dairy: Primarily based in northern India, supported by a dedicated representative in the region.
Shrimp: Concentrated in the southeastern part of the country.
Poultry: Spread across various regions, posing a penetration challenge.
Backed by a couple of major clients, Techna is now focusing on penetrating smaller brands to establish a broader market presence.
Key agricultural trends in India
To understand the market for Techna better, it is necessary to understand the drivers of market. India has a big geographical terrain which specificities changing drastically from North to South. The Animal feed market in India is primarily driven by Poultry and Meat Market, Dairy and Milk consumption market and Shrimp market.
As per MOFPI Meat and Poultry Market 🐔 :
India has the world's largest population of livestock
India is the largest producer of buffalo meat and 2nd largest producer of goat meat.
India produces around 5.3 million MT of Meat and 75 bn eggs annually.
Dairy Market and Milk Consumption 🐮🥛
Dairy Market Growth: India, the world's largest milk producer, contributed 24.64% of global output in 2021-22. Milk production increased by 58% over nine years, reaching 230.58 million tonnes in 2022-23, with a CAGR of 5.85% [Invest India]
Exports: In 2022-23, India exported 67,572.99 metric tons of dairy products, valued at $284.65 million [Invest India]
Consumption Projections: For 2024, fluid milk production is forecasted at 212.7 MMT (+3%), with consumption at 90 MMT (+3%). Nonfat dry milk production is projected at 0.8 MMT (+4%), and butter at 6.9 MMT (+2%) [US Department of Agriculture]
3. Shrimp market 🦐
As per Seafoodwatch, India is the world's second-largest producer of white leg shrimp (Litopenaeus vannamei), with an annual production of close to 1 million metric tons
As per Mpeda, Andhra Pradesh is the largest shrimp-producing state from aquaculture in India. West Bengal leads in the area under culture and production for tiger shrimp specifically
Animal Feed Market 🎍
As per Feed strategy,
The Indian feed market grew at 3.5% annually over the past five years and the size reached US$11.47 billion in 2022.
According to analysts’ predictions, the market may reach US$19.23 billion by 2028, if it maintains its annual growth rates in the range of 5% to 7% within the next five years.
South India is a center of animal feed production in India, accounting for the largest market share. In recent years, the biggest growth of output was observed in Andhra Pradesh, Karnataka, and Tamil Nadu, which became mainly due to the rise in the manufacturing of poultry products.
Key challenges to the Indian agriculture market?
India's agricultural sector faces significant challenges, with farmers grappling with low incomes and slim profit margins. Lower income per capita of agricultural households, the sector's vulnerability to climate change, and complex regulation make it challenging for business to grow. Despite these challenges, India's agriculture market continues to grow, valued at $372.94 billion in 2024 with a CAGR of 4.90% (Mordor).
🤑Business profit margin:
As reported by the Hindu, The average monthly income of agricultural households in India is low, at ₹10,218 (US$128) in 2018-19, indicating slim profit margins for farmers.🌧️ Climate change/sustainability:
As per research and DST, India's agriculture sector is highly vulnerable to climate change, with potential yield reductions of 4.5-9% for major crops by 2039.⚖️ Relevant quality and regulations:
As compared to EU, India's regulations are complex, with the Drug and Cosmetic Act being particularly lengthy.
The Food Safety and Standards Authority of India (FSSAI) regulates the food industry.
Animal agriculture regulations are less developed, with antibiotic use still prevalent.
✊ Increasing antimicrobial resistance
Overall the markets tend to prohibit the use of antibiotics in animal feed. India is resisting but slowly reducing its dependence on antibiotics as growth promoters.
Forging Ahead: What is Techna's Vision for India
🔮 As Techna India continues to establish its presence in the country, the company's vision extends far beyond mere business objectives:
Investing in Local Talent and Expertise
"While we leverage the global expertise and resources of Techna, we are also actively investing in building a strong local team," Gracie explains.
"By hiring and training professionals from within India, we can better understand the challenges faced by our clients and develop solutions that resonate with their unique requirements."
Empowering Farmers and Communities
At the core of Techna's mission lies a deep commitment to empowering farmers and communities. Gracie emphasizes the importance of providing not only innovative solutions but also education and training to ensure that farmers can fully leverage the benefits of precision nutrition and sustainable farming practices."
Techna India is actively exploring partnerships with local organizations and community groups to develop educational programs, workshops, and training initiatives that can reach farmers across the country, regardless of their location or resources.
A Sustainable Future for Indian Agriculture
As Techna India continues to grow and expand its operations, Gracie remains optimistic about the company's ability to drive positive change and contribute to the sustainable development of India's agricultural sector.
We are committed to being a force for good, not just in terms of our products and services, but also in our approach to business," Gracie affirms.
By prioritizing sustainability, fostering innovation, and empowering local communities, Jean-Noël believes in creating a future where Indian agriculture thrives while respecting the environment and supporting the well-being of farmers and their families. With a strong foundation built on expertise, collaboration, and a deep commitment to sustainable practices, Techna India is poised to play a pivotal role in shaping the future of precision nutrition and sustainable agriculture in the country.