Sterling Test House will serve as a base for the company’s operations in the country.
Business of the commercial lab includes virtually all food safety and water quality testing for hotels and restaurants in its home region, safety and quality analysis for the country’s expanding nutraceutical market and growing food export businesses.
Prior to the acquisition, Neogen worked with three small regional distributors in India. It had some sales of food allergen and mycotoxin rapid tests, and Soleris and BioLumix instruments for the detection of spoilage microorganisms in the region.
Expanding middle class
Dr Jason Lilly, Neogen’s VP of corporate development, said it is likely that the expanding middle class will demand the same safe and high quality foods expected in Europe, US and elsewhere.
“With this increasing demand for safer, higher quality foods, comes an increasing demand for food safety testing,” he told FoodQualityNews.
"We will continue to support and expand the service lab business, as that is critical for exported products due to governmental regulations.
"With this as our foundation, we will then look to expand the sales of our rapid food safety tests for mycotoxins, allergens, pathogens, and other foodborne contaminants."
Lilly said the major drivers behind the country’s growing nutraceutical and food export businesses are expanding global standards for food quality and safety.
“As shown in the horse meat scandal and the recent adulteration of the spice cumin with peanuts, consumers in wide-ranging parts of the globe are increasingly demanding the same high-quality and safe food items that are exactly what they are represented to be,” he said.
“Consumers of nutraceutical products are adopting similar demands for those products.”
About the transition
Sterling Test House was one of the first testing companies in India to earn full National Accreditation Board for Testing and Calibration Laboratories accreditation.
The laboratory is in Cochin in the State of Kerala, India’s leading region for the export of spices, tea, and fresh fruits and vegetables.
It is compliant with the Indian Food Safety Standards Act for food safety testing. The business has 40 employees, who will be continuing with the acquisition.
Sterling will be a part of Neogen’s wholly owned subsidiary, Neogen Food and Animal Security (India) Private Limited.
Shivdas Menon, managing director of Sterling Test House, said: “The timing for expansion in India in the food safety market is perfect for Neogen to provide leadership to the public and private sectors in their efforts to strengthen the food chain in its entirety.”
Neogen acquired the food safety and veterinary genomic assets of its Chinese distributor, Beijing Anapure BioScientific Co last year and said the latest acquisition was also intended to accelerate revenue growth in global food safety markets.
“Since our Chinese acquisition, we have worked on transitioning from a distributor-based presence, to working with our own staff to expand our business there. We have increased sales, but the base was small, so it’s hard to characterize it was being of “note”. We look at it as if we are still building our foundation in China,” said Lilly.
Hygiene monitoring system
Meanwhile, Neogen has launched the next generation of its AccuPoint ATP Hygiene Monitoring System.
The system features samplers to more consistently collect potential residues left behind after cleaning; a compact reader to better detect residues collected by the samplers; and data management software to better organise and analyse test results.
ATP (adenosine triphosphate) sanitation monitoring systems have evolved into the “gold standard” for food and beverage production facilities to monitor hygiene programme’s effectiveness, said Neogen.
“Using an ATP system is an easy and quick gauge of a facility’s cleanliness, and is easily customized for the specific equipment, people, product, and processes used in any food production facility," it added.
"The system sets an objective, recordable and traceable standard to help avoid the consequences of substandard cleaning efforts."