NEW ERA OF INDIAN READY TO EAT FOOD

(RETORT FOOD – Having shelf life up to 18 months)

BRIEF
India has made lot of progress in agriculture & food sectors since
independence in terms of growth in output, yields and
processing. It has gone through a green revolution, a white
revolution, a yellow revolution and a blue revolution. Today, India
is the largest producer of milk, fruits, cashew nuts, coconuts and
tea in the world, the second largest producer of wheat, vegetables, sugar and fish and the
third largest producer of tobacco and rice.
Now the time is to provide better food processing & its marketing
infrastructure for Indian industries to serve good quality
& safest processed food like ready to eat food. It is opening a new window in
world scenario as far as taste & acceptance is
concerned. Therefore, Indian Government is providing more
infrastructure for this sector. Excise duty is now ZERO % on RTE
and 100 % tax deduction for the first 10 years for new units. This allows manufactures
to bring down their prices & spreads its
flavors to the world.

The retort processed foods do not require rehydration or cooking and can
be consumed straight from the pouch with or without pre-warming, depending upon
the requirement of the users and the weather conditions. These foods meet the specific
needs of convenience, nutritional adequacy, shelf
stability, storage, distribution to the centers and have become
very popular after the Year 2002. Some of the mouth-watering dishes in retort pouches
include sooji halwa, upma, chicken curry, mutton curry, fish curry, chicken madras,
chicken kurma, rajma masala, palak paneer, dal makhnil, mutter paneer, potato-peas,
mutter mushroom, vegetable
pulav chicken pulav, and mutton pulav, etc.
The pioneer introduction of retorting technology has made the sale of ‘Ready-
to-Eat’ food products commercially viable with great taste.

CONCEPT

• Ready to Eat Meals like already cooked or prepared lunch & dinner are
relatively new products which came in market only a few years back and are
now sold through retail general stores in especially made sealed aluminum
laminates.

• The retorting or sterilization process ensures the stability of the Ready-to-Eat

foods in retort pouches, on the shelf and at room temperature. The application of
sterilization technology completely destroys all potentially harmful micro-
organisms, thereby making sure that the food product has a very long shelf life
of over 12 months and needed no refrigeration.

• When customer needs to eat, the food item pouch is either put in microwave
oven to warm it or keep in heated water for a few minutes and then serve to eat.

• Such ready to eat meals have been especially given to soldiers in army of
many countries who require carrying their rations while on war front or while
located far away from their main unit.

• The advertisements like, "Hungry Kyaa" are adding zest to the market by
popularizing such food items which are pre- cooked and free from any
preservative, and yet have a long shelf life of over 12-months. These food
items are normally selling in pouches, well packed in cardboard printed boxes of
 small book size and carry about 300 grams of cooked food at a price of about
Rs. 40 to 200 in foreign market depending upon the type of dish packed. One
packet of vegetable dish is normally sufficient for one meal
for three persons and therefore falls in economic
zone of consumer’s preferences.

WHY READY TO EAT FOOD

• Globalization of Indian food and its culture are the core

factors for popularization of ready to eat foods.
• Main motivation for these ready to eat foods is fast growing
foreign market.
• Retail outlet culture is now growing rapidly in India.
• Shelf life of these foods are
• Cost effective in comparison to the Indian cuisine served by the restaurants in
foreign countries.
• at least 12-18 months.
• Quality, Taste and Flavor of these foods remains as good as
• fresh up to the expiry date.
• Women wanting to spend more time out of the kitchen.
• More working bachelors staying away from homes.

TYPES OF READY TO EAT FOOD

Veg Food Non Veg Food

Alloo Matar Chicken Curry Palak

paneer Butter Chicken Sarso Ka
Saag Karahi Chicken Chana
Masala Mughalai Chicken Kadi
Pakora Mutton Masala Cheese
Tomato Mutton Korma
Dal Makhani Karahi Mutton
Rajma Masala Mutton Biryani
PLAYERS IN READY TO EAT FOOD

1. MTR
2. Kohinoor Foods
3. ITC
4. Haldiram
5. Tasty Bites

RETORT & ITS PACKAGING

The water RETORT is an equipment or vessel or sterilization module through

which steam (at 130 degree centigrade for 25 minutes) is applied on food
products packed in retort pouches.

The retorts use water or steam/air combination as processing medium to heat the
container/packages. Compressed air or additional steam is introduced during the
processing cycle to provide the overpressure (any pressure supplied to the retort in
excess of that which can be normally achieved under steam at any given retort
temperature). Overpressure is important in preventing package damage or loss of seal
integrity (like bursting), during the heating process.

Retort pouches is a flexible packaging material that basicallyconsist of laminates

or bounded layers of different
packaging films of Polyster-Nylon-Aluminium-polypropylene that can withstand high
process temperature & pressure.
 Their most important feature is that they are made of heat- resistant plastics unlike the
usual flexible pouches. This makes the retort pouches unique which are suitable for
the processing of food contents at temperatures around 120 degrees Celsius. That is
the kind of ambient temperature prevalent in the thermal
sterilization of foods.

There is lesser time to spend in cooking food themselves and so ready to eat foods are
preferred. To get the food of different cultures, taste etc, it is important that food
has good shelf life so that it can be made available at far off places too and then can
be conveniently consumed also.

ADVANTAGES OF RETORT PACKAGING

• Pouch laminates permits less chance to overcook during the retorting thus
products having better color, texture & less nutrients loss.
• It requires less energy for sterilization.
• It requires less disposal & storage space.
• Low oxygen & moisture permeability.
• Shelf stable for longer time & requires no refrigeration.
• Sun light barrier, light weight, easy to open.

MARKET & ITS GROWTH

The popularity of ready to eat packed food now is no longer

marks a special occasion. Peoples want value for time, money in terms of quality
and variety.
The food processing industry is one of the largest industries
in India and it is the ranked fifth in terms of Production, Consumption, Export &
Expected growth.
Processed food market in India accounts for 32% that is Rs.
1280 billion or 29.4 billion US $ in a total estimated market of Rs. 3990 billion or 91.66 US $.

Euromonitor International, a market research company says

that amount of money Indian spend on ready to eat snacks & food is 5 billion US $ in a year while on
abroad Indian or Indian subcontinents spend 30 billion US $ in a year.

Ready to eat packaged food industry is over Rs. 4000 crore or 1 billion US $ and it is growing at
the rate of 20 % per annum.

Ready to eat food market is developing specifically in UK,

USA, Canada, Gulf & South Asian Countries with the growth rate of over 150 % per annum.

Introduction
India saw rapid economic growth fuelled by economic reforms during the period 2004 to 2007. FDI inflow
increased and GDP growth was at 8-10 per cent during the period.

The global economic downturn seen in 2008 had a deep impact on the economy with industrial output
slowing down and inflation increasing by two percentage points over the previous year to 8.3 per cent.
However, real GDP growth remained strong at 7.3 per cent.

With its vast population base, growing middle class and strong macro-economic environment, the Indian
market has seen processed food emerge as the one of its fastest growing segments. Rapid lifestyle
transformation, particularly in urban areas, has resulted in a dramatic increase in the demand for
processed, packaged and ready-to-eat food products.

The arrival of food multinationals and the proliferation of Quick Service Restaurants(QSR) outlets have
further added to the growth of this industry. The proliferation of modern retail trade and expansion of
supermarkets /hypermarkets, shopping malls and fast food outlets, coupled with favourable industry trends
is contributing to radical shifts in the Indian food and grocery industry.

The size of the packaged food market in India is estimated to be US$ 10 million and is expected to reach
US$ 20 million by the year 2014. Packaged food, which is now 4 per cent of the overall F&G market, is
expected to reach 5 per cent of F&G market by 2014.

The main categories of packaged food include baby food, bakery products, canned/ dried processed
food, confectionery, dairy products, frozen processed food, ice cream, meal replacement products,
noodles, nutrition/staples, pasta, ready meals, sauces, dressings and condiments, snack bars, soup,
spreads, sweet and savoury snacks, etc. Exhibit 1 summarizes the key players in the packaged food
segment.

Exhibit1: Key Players in the Processed Food Segment

Player Segment Products
HindustanUnilever Beverages, Staples,Dairy, Snack Tea, instant coffee, biscuits, ice creams, salt,
Limited Foods wheat flour (atta), instant drinks, soups, jam
Nestle India Pvt. Ltd. Dairy, Beveragesand Snack Instant coffee, condensed milk,dairy whitener,
Foods infant food, choco- lates and confectioneries
IT C Ltd. Staples and Snack Foods W heat flour (atta), salt, ready-to-eatmeals,
biscuits, confectioneries,snacks and cookingpaste
Pepsico Beverages and Snack Foods Fruit Juices, cereals, snack foods, dairy derivatives
Dabur India Ltd. Beverages and Culinary Fruit juice, cooking pastes, coconut m ilk,tomato
Products puree, lem on drink,chillipowder and honey
Cadbury India Ltd Confectionery Chocolates, hard-boiledconfectionery, maltfoods,
HaldiramM arketing Snack Foods Sweets, namkeens, syrups, crushes, chips and
BritanniaIndustries Bakery Products Biscuits, flavouredmilk, dairy whitener, ghee,
GodrejIndustries Beverages and Staples Edibleoils, vanaspati, bakery fats, fruit drinks,
Ltd. fruit nectar, fruit juices and tomato puree
Parle Agro Private Beverages, BottledWater and
Growing and organised retail penetration is expected to aid the growth of the processed food market in
India. A number of categories which are highly dependent on organised retail-like frozen food products -
are expected to witness significant growth in the years ahead.
The segment that has shown maximum exponential Exhibit2:
growth is the read y-to-eat segment. Ever since the Break-up and Category Share within
processes of freezing and chilling products have the Packaged Food Sector
become very refined, technologically sound and In 2008 and 2014
subject to stringent hygiene practices, this sector
has expanded and is expected to grow in the next 3 3 2 (A ll figures in %)
5
few years. Staples which are currently sold loose
Cereals, pulses & spices
are also expected to undergo significant changes 12 Fruits & vegetables
with the advent of private labelling. The trend of 43 Packaged food
wellness food, in the form of nutritionally enhanced Milk & milk
and fortified food, probiotic food and organic food is 13 products Meat, fish
expected to grow. Organic food is rapidly becoming & poultry
a distinct and well-defined category. Similarly, the 19 Beverages
other concepts mentioned here will grow as much
and gradually occupy more shelf space in the near
future.

The larger food processing companies like Nestlé, Parle, Britannia etc., have diversified often over the
years. Nestlé’s foray into the pre-cooked noodle segment (Maggi noodles) from milk products-which
were its core competenc y-proved that there was a huge untapped market for packaged goods. Similarly,
Britannia, synonymous with biscuits, had boldly entered the space for milk products, with its range of
cheeses and later curd.

Consumer Trends Fuelling the Indian Packaged Food Market

Changing Demographics of the Indian Population
The Indian population is younger, more urban, with greater disposable income and high purchasing power
parity (PPP). Urban consumers are typically busier and more affluent, thus more willing to pay for
convenience. The main impact of urbanisation has created a growing demand for convenient products.
Ready meals thus saw a strong 18 per cent growth in 2008 over the previous year, with these
products regarded as a convenient alternative to cooking from scratch. Packaged soup also benefited,
with dehydrated soup growing by 21 per cent in current value terms, while instant noodles became an
increasingly popular snack or meal component, with sales thus growing by 24 per cent.

Convenience
The demand for ‘convenience’ is dominant in more than one segment. Apart from convenience in cooking
at home, food services and chains have an equally strong share in the purchase of packaged foods.
There was a strong focus on expanding consumer food service chains across urban areas which is set to
continue to grow. Consequentl y, urban commuters w illenjoy easy access to trusted consumer food service
brands offering affordable food.

This demand for convenience also supported good growth in canned/preserved food and frozen
processed food, with consumers appreciating the convenience of stocking up and keeping easil y-
prepared food at hand. Consequentl y, canned/preserved food saw 12 per cent current value growth in
2008 over the previous year, while frozen processed food grew by 13 per cent.
Nutritional and Health Benefits
There has been a growing focus on health conditions, with most consumers having at least a rudimentary
awareness of cance r, diabetes and heart disease. The bulk of new product development is expected to
focus on nutritionally enhanced and fortified/functional products, with these areas having proved
successful. Increasingly, the two concepts w ill be combined, with low-fat impulse and indulgence
products more and more likely to offer fortification. Players meanwhile launched numerous products with a
health and wellness positioning. Nestlé India, for example, re-launched Maggi Two Minute Noodles
fortified with 20 per cent of the RDA of calcium and protein in 2008. Gujarat Co-operative M ilk Marketing
Federation Ltd. launched Amul Sugar Free Probiotic Frozen Dessert and Amul Prolife Probiotic Wellness
Ice Cream in 2007, thus creating a new niche of probiotic ice cream.

Players w illalso seek to become first-movers in the niches of health and wellness packaged foods. Organic
products are thus likely to see strong development, generally targeting affluent urban consumers. Naturally
healthy products could also see a growing emphasis on their health benefits, with basmati rice, for
example, having its low glycaemic index emphasised on the packaging.

Exhibit3: Outlook for the Food and Grocery Market

• The food and grocery m arket will continue to grow at a real growth rate of—4.1per cent in the next 5 years
• OrganisedF & Gw illgrow from — U S $3 billionin 2008 to— US$19 billionby 2014 at a C A G Rof 33 per cent
• F& Gretail is dominated by the unorganizedsector, with —98 per cent of the market being local kirana stores
• Packaged food is 4 per cent of the F&G market. RTE/ frozen food share is less than 1 per cent of the packaged food market at US$ 64
million
• 2,800 organised retail outlets catered to F & G in 2008. The bulk of these are supermarkets (87 per cent) followedby hypermarkets (13
per cent)
• Total organised F & Gspace was — 20 millionsq. ft. in 2009, of which 60 per cent were hypermarkets and 37 per cent supermarkets
• Between2004 and 2008, the number of outlets grew by 68 per cent CAGR, while space grew by 70 per cent C A G R
• The key decision-makerfor foodand grocery shopping for the household still remains the housewife in 95 per cent of all cases
Key implications:Supermarkets/hyperm arketsand Cash & Carry form atswill fuel F & Gorganised retail in India. Largerform atslike Cash
& C arry and H yperm arketscan be significantsales contributorsfor the frozenfood

Exhibit 4 shows how the packaged food category has grown in China.

Exhibit4: Growth of Packaged Food Sector in China: A Case Study

• In 2007, China’s food market estimated at US$ 96.2 billionwas the biggest value among the five B R IC Mcountries. It also recorded a strong
track records of value growth from 2002, putting it in second position behind Russia.
• The popularityof processed and Western-style food in urban China is star ting to be mirrored in par ts of rural China, and w illgrow dramatically
as major retailers such as Carrefour seek to expand out of saturated ‘first-tier’ cities into other regions over the next five years. It is the
increasingly sprawling urban population that w ill drive strong value and volume growth in processed and packaged foods; by 2050 an
increase of 115 per cent to 970 m illionis anticipated in the urban region-upfrom the 450 million‘urban-dwellers’found in China in 2000.
• Previous growth has been driven by strong economic development in China, increased penetration of organised retail, and the entry
of multinationalbrands. The demand for packaged food grows annuallyas people trade up to packaged rather than loosely packed food. The
rising role of modern retail formats such as supermarkets, conveniencestores (c-stores) and hypermarkets is also having a big impact on the
type of food people are buying.
 Key Growth
Enablers
Urbanisation
India has witnessed ongoing urbanisation in the past decade or so, and this is linked to the country’s
economic growth and foreign direct investment. The main impact of urbanisation was a growing demand
for convenient products, with consumers preferring to have ready access to easy-to-prepare foods that
were either canned/preserved or frozen.

Aggressive advertising campaigns by food companies have led urban consumers to develop an increasing
interest in Western lifestyle trends. Urbanisation boosted sales of products such as breakfast cereals and
ketchup, which grew by 13 per cent each in current value terms in 2008 over the previous year. These
products are strongly advertised and benefited from a fashionable western image. Canned/preserved food
saw 12 per cent growth in 2008 over the previous year, while frozen processed food grew by 13 per cent.
Exhibit 5 shows the share of food and grocery sales in the organised and unorganised sector between
2005 and 2008 and its estimated growth in the next 6 years.

This is expected to drive strong growth in many product areas in meal solutions, with pouch instant
noodles, for example, set to see 115 per cent growth. These products offer a quicker and more
convenient meal

Exhibit5: Growth of Indian Food and Grocery Retail Market

350 18.5
14.7
11.7
8.1
300 6.1
3.3 4.3

250 2.9
2.1
200 1.4
billion
US$

150

100
195 216 237 266 277 288 298 307 316 326
50

0
2005 2006 2007 2008 2009P 2010P 2011P 2012P 2013P 2014P

Traditionalor Organised Organised

component than rice and, thanks to their use of flavouring, can also be consumed as a snack. This trend
is also expected to benefit ready meals, canned/preserved food, frozen processed food and sauces,
dressings and condiments, all of which make food preparation quicker and more convenient.

Growth of Organised Retail

Retailing saw strong growth in India benefiting from strong GDP growth and the emergence of a large
consumer base-the urban, young middle class. Supermarkets notably saw strong growth, with sales
rising by 108 per cent in 2008 alone. Exhibit 6 summarises the key facts of the growth of organised retail
formats, and consumption of packaged food and grocery products.
Exhibit6:

Supermarkets/hypermarkets gained share across Organised Retail and F&G Consumption

packaged food during the review period, thanks to • The share of organised retail is expected to grow from current —
expansion in the number of outlets. This channel 5 per cent of total retail to—12 per cent by 2014 and w ill show
more than doubled it’s share from 5 per cent in a C A G Rof 25+per cent between 2008-14.
2003 to 11 per cent in 2008. In the year 2008, • F & G forms the largest share (65 per cent) of retail consumption.
supermarkets/hypermarkets also accounted for The market was about US$ 270 billionin 2008 and is expected to
reach—US$345 billonby 2014.
a dominant share in canned/preserved food and

frozen processed food, at 68 per cent and 79 per cent respectively. The channel’s most significant growth
was seen in impulse and indulgence products such as sweet and savoury snacks and ice cream and
dairy beverages. Share of supermarkets/hypermarkets grew from below 4 per cent in 2003 to 11 per cent
in 2008, challenging the regional dairies’ dominance in this area by offering good quality fresh milk at
affordable prices.

Improvement in Packaging Technology

Until recently, the majority of foodstuff was sold unpackaged. In the last few years, all sectors increased
their share of packaged production. Despite a definite rise in the number of packaged products, many
products are still sold unpackaged.

The technology for packaging products and increasing their shelf life is being developed and adopted very
rapidly. Along with the emergence of various forms of processed foods, a corresponding suitable
packaging technology is also developing. M ilk is one product which is sold in four different types of
packaging, with each type further having different designs and forms.

Advances in packaging technology have not only improved the shelf life of products but also significantly
reduced the cost of packaging.

New Product Introductions by Brands

Many manufacturers/brands are creating the market by frequently introducing new products for packaged
food. Large multinational companies like Nestle have been able to do this very successfull y. The new
products are customised as per the requirements of Indian consumers and are targeted at satisfying their
unmet needs.

In addition to existing brands, a number of importers are also importing a significant amount of processed
food from European and South-east Asian countries. The imported product categories are targeted at the
premium segment of the market.

Growth in Freezer Space

There has been a remarkable expansion in product categories and ranges due to considerable growth in
freezer space in modern retail formats. The retail freezer space for 2008 is estimated to be 247,000 cu. ft.
This is expected to grow to 531,000 cu. ft by 2014 at a CAGR of 14 per cent. The frozen food segment,
originally covering only frozen meats, fish and poultry products, currently includes frozen vegetables,
ready-to-eat foods also, and w ill grow from US$ 1.8 billion in 2008 to US$ 2.6 billion by 2014. This growth
has been fuelled by the increasing availability of freezer space in modern retail shops.

Exhibit 7 shows the increase in freezer space corresponding to the increase in number of stores in future.
Dairy products, confectionery and read y-to-eat products have received a robust boost in obtaining shelf
space and corresponding sales due to their positioning and supporting infrastructure.

Exhibit7: Increase in Freezer Space

1500 300

1200
200
900
No. of stores
Freezer space

1215 1215 1215 1215

600
1148
1013 100
(Cu.Ft)

878
300
270
0
0
2010-11 2011-12 2012-13 2013-14 2014-15 2015-16 2016-17 2017-18

Freezer space (Cu.Ft)

EmergingNew
Categories
Value-added
Dairy
Products
India is the world’s largest milk producer and dairy is one of the most promising
segments of food processing.

The market for dairy products is currently estimated to be US$ 33 billion. The demand for
dairy products is expected to grow at a healthy rate of 15 per cent to 20 per cent over the
next five years. The segment offers a high potential for value addition-the level of
processing value-add, at 37 per cent, is amongst the highest in the food processing
industry. At the same time the share of organised players is still small, at 15 per cent,
indicating the potential for growth for organised players.

Dairy segments have also been focus areas for policy support by the government with
major initiatives like:
• Foreign equity participation permitted to the extent of 51 per cent in dairy
processing sector
• De-reservation of many segments like ice cream and ghee from
small-scale industries
• Excise duty of 16 per cent on dairy processing machinery fully waived for promotion of
dairy processing
• Subsequent to decanalisation, exports of some milk-based products are freely
allowed provided these units comply with the compulsory inspection requirements of
concerned agencies like the National Dairy Development Board, Export Inspection
Council, etc.

Health-
focused
Snack Foods
The market for snack foods in India is estimated to be US$ 265 million. For mass
products, this business is characterised by high volumes and low margins and is
also highly competitive. Growing health consciousness has opened up the market for
health-focused snack foods category. A number of existing companies like Frito Lay,
Parle Agro, and ITC Foods have taken notice of this segment and are targeting
consumers through new product offerings. Given the increasing demand for healthy food,
this segment will witness significant activity.

Frozen Read y-
to-eat
Segment
Increased penetration of organised retail is expected to significantly increase the size
of this nascent categor y-currently estimated at US$ 1,804 million. It is estimated that
freezer space w ill double in 4-5 years leading to the increasing availability of these
products in the market. Entry of large international companies like Tyson Foods (In a
joint venture with Godrej Agrovet), McCain, etc. is expected to play a significant role in
the growth of this market.
Non-vegetarian
Processed Foods
Currently, most of the non-vegetarian products in India are sold in raw unhygienic form.
Given the increasing health consciousness and increasing need for convenience, it is
expected that processed non-vegetarian food category w ill show significant growth. The
increasing penetration of supermarkets/hypermarkets and improvement in cold chain
infrastructure w ill significantly aid the growth of this segment.

The processed food segment in India is currently at a very nascent stage. Changes on
the demand as well as supply side such as increasing urbanisation, need for
convenience, health consciousness, increased penetration of organised retail, improved
cold chain infrastructure and entry of international players are key drivers that w ill result in
significant growth in the market.

. THE INDIAN FOOD PROCESSING INDUSTRY

The Food processing industry has an important role to play in linking the farmers to the
final consumers in the domestic as well as the international markets. Food processing
combined with marketing has the potential of solving the basic problems of agricultural
surpluses, wastages, rural jobs, and better remuneration to the growers. In the next ten
years, food production is expected to double. These produces, if processed and marketed
smartly, can make India a leading food supplier of the world.
India with a population of 1.08 billion (growing at about 1.7 % per annum) provides a
large and growing market for food products. Food products are the single largest
component of private consumption expenditure, accounting for as much as 49% of the
total spending. Furthermore, the upward mobility of income classes and increasing need
for convenience and hygiene is driving demand for (a) perishables and non food staples
and (b) processed foods. Also, eating out is a booming practice in urban India and
processed foods are accepted as alternative to the home cooked food because of the
convenience it offers. Also, with the globalization of trade and availability of high speed
logistics, food retailers in developed countries are sourcing an year-round supply of fruits
and vegetables from developing countries. Thus, both for local consumption as well for
export there is a year round opportunity for fruits and vegetables, meat and poultry
products and ready to eat processed foods.
The processed food industry should introduce innovative new products of high quality at
low cost in small package sizes in ready to eat format to cash on this booming
opportunity. HLL, ITC, MTR and others have introduced some innovative heat and eat
dishes with reasonably good packaging. But there is lots of manual handling and hence
food hygiene and quality are suspect. Multinational companies have entered the food
value chain in India, Cargill and Conagra in agri-inputs, Tropicana in food processing
and Metro in wholesaling. Local companies like Dabur, MTR, ITC, Godrej, and Amul
are aggressive across the value chain. Multiple restaurant chains such as McDonalds,
Pizza Hut, Dominos, Coffee day, Qwiky’s and Saravana Bhavan, and Sagar Chains are
growing rapidly. However, the pace is slow in the food sector compared to the other
sectors such as IT and Pharma. There are no billion dollar players in India in the food
industry where as China and Philippines have several large players with sales exceeding
US $ 1 billion.