SGS India Ltd, the wholly-owned subsidiary of Swiss inspection, testing and verification major SGS, has set up a food services division in India.

Besides providing with an internationally recognised certification, the food services division intends to offer producers, processors, catering establishments, hotels and restaurants services implement and maintain food quality and safety.

SGS India chief - food services John Bryden told The Financial Express that the division will offer the SQF 2000 certification - akin to the ISO 9000 certification - to the Indian businesses in the food industry.

SQF 2000 - a management system - is basically a seal of approval which demonstrates that the product has been produced under a HACCP-based quality system, explains Bryden.

HACCP is a technique that involves examining the production process, identifying the critical areas of concern or hazards and putting measures in place to prevent potential problems from happening, he adds.

The need for such certification has emerged as food safety and quality issues have received a great deal of attention in recent years. And in India, this will mean companies can protect and enhance brands and private labels, promote customer confidence and conform to regulatory and market requirements, reasoned Bryden.

"The SQF 2000 certification logo can be placed on each product unit by the manufacturer or retailer whereas the ISO 9000 certificate cannot be", said Bryden.

Companies in meat & poultry, seafood, fruits & vegetables, dairy products or cereal products sectors or service establishments like hotels, restaurants and airline catering companies could find this useful, said Bryden.

The food division will use five of the company's 30 laboratories in India. SGS India intends to focus on development of the concept during calendar 2000. "We intend to do about five SQF 2000 certifications by the year end", said Bryden adding that the number is expected to go up to 100 by 2005-end. The food services division expects to do a sales business to the tune of Rs 8 crore with a profit of Rs 2 crore by year 2004. To create salience about the concept, the company intends to spend about Rs 7 lakh on awareness and marketing, and the amount is expected to increase "substantially in the next few years".

The company has planned a series of awareness seminars starting from May in major metros initially. The company has already initiated a dialogue with two hotel industry associations - FHRAI and HAI - to provide hygiene and food safety training to their member hotels in the country. SGS India offers inspection and testing services for companies in the agricultural, mineral and chemicals, industrial, petroleum and petrochemicals and consumer product services. SGS, which operates in over 140 countries through its network of subsidiaries and laboratories had sales turnover of $ 1.9 billion in 1998.