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, Only to be used for academic purpose) Changing lifestyles and the modified eating habits of India’s growing urban population have propelled its processed food industry. 30 million upper and middle class Indians consume packaged food and 200 million more are projected to do so in the next three years. Frozen and canned foods that can be heated and served instantly have found a place on the shelf in a regular middle class kitchen. Various social changes are driving this trend, from the growing number of nuclear families to increased urbanization and a significant rise in the number of working women as well as a growing practice of singles living away from home for education or work. The demand is propelled by the options to consumers apart from Maggie as the only lesser effort and time consuming appetizer. 30-40%of the housewives from the SEC A,B and C households regularly shop for packed and convenience food items like noodles, pasta, soup powder and RTC of brands like MTR and Ashirvaad regardless whether they are shopping from traditional grocery stores or modern format. (Source Indian Shopping trend 2008). One school of thought even says how
consumer differentiates and value between RTC mix and blended spices like Pav Bhaji mix and Pav Bhaji masala.
According to a study, the Indian ‘Ready to Eat’ market is estimated to grow to US$ 727.09 million by 2015 from the current $ 32.09 million. ‘Food’, clearly, has become the appetizer driving India’s retail revolution. According to Retailers Association of India (RAI), food and beverage sectors’ share in overall retail in India is now at a staggering 65%; and majority of this 65% share comes under the ambit of processed foods and vegetables. Further, according to consulting firm McKinsey & Co., the retail food sector in India is likely to grow from $70 billion now to $150 billion by 2025 (a forecast many analysts say is very conservative) with 60% of this market belonging to the convenience food category. Even McKinsey stresses that the Indian FMCG segment’s gen-next growth will be driven by the food segment only. The future market will be shuffled by the two factors, firstly by the aggressive marketing of the India originated brands to acquire a niche and get brand loyalty. Secondly by the foreign players those are entering into the Indian market either through JV or through acquiring the Indian originated brands. Aashirvaad’ and ‘Kitchens of India’ products from ITC’s stable include a wide assortment of ready to cook foods and dishes ranging from ‘Dal Bukhara’ to ‘Murgh Methi’ and other exotic cuisines, but also include the more everyday biryanis and curry pastes. Amul has ventured into the ready-to-eat industry and includes Processed Cheese, Pure ‘Ghee’, ‘Shrikhand’, Nutramul and ‘Mithaee Gulab Jamuns’ among its offerings. Bikanerwala Food’s Bikano, the traditional Indian Sweet- Maker, is taking its wares beyond the domestic frontiers to the Western World with offers of
Article by Siddhartha Bhardwaj, Director Sylloge Corporation, his strategic work is appreciated by the global marketing and sales strategist.
and ‘Aloo Tikki’. For example. ‘Chaats’. a big reason for global giants to enter India. . The strategy will be to present at all price points with cheaper range of instant noodles under the brand name of Smith & Jones. Article by Siddhartha Bhardwaj. which markets the popular instant noodles.RTC –The future of Indian Brands ( www. At the same time. is now working on a pilot project with the Gujarat Co-operative Milk Marketing Federation. plus sauces and soups. which would also get the 'Hommade' tag.9. The rising incomes will increase domestic consumption of ready-to-eat (RTE) and ready-to-cook (RTC) food over the next five years in India. The Norwegian branded food major Orkla SA acquired the Bangalore-based MTR Foods Ltd for $80 million to get a snapshot entry into the Indian market. ‘Sev Puri’. have worked to a large extent to support easing of raw material sourcing issues for RTE and RTC products. however. has planed 'Hommade' to exploit the RTC segment. The idea is to give quick and healthy nutritious meal options to Indians from different regions. ‘Pakoras’. Who all are we talking about here? Starting from global giants like Walmart. Mother’s Recipe and Kohinoor Foods. The convenience foods targeted at Indian consumers could range from traditional recipes like ‘avial’ from Kerala. Dabur. A FICCI estimate this year says that the year 2009 has been a record year for India’s food retailing industry as at least 20 convenience food brands have entered the Rs. There’s more! Indian RTE and RTC brands are now increasingly finding prime shelf-space in the retail chains of US and Europe. The lucrative future in RTC is further evident by huge influx of foreign players entering the convenience food industry in a clear attempt to either set up JVs or simply to acquire companies lock. also eyeing the Indian RTC market with the regional Indian specialties concept. ‘Ching’s Secret’. Even Dabur.consider the Mumbai based Rs.com. is keeping the new product portfolio under wraps but the company is likely to launch products based on traditional knowledge.900 billion Indian agriretail sector. Orkla is now using MTR as the sourcing hub for its overseas food business as well. ‘dhoka’ from Bengal to lotus roots from north India.internsindia. One of advantage for foreign players is the consistent increase in agricultural output of India. the list seems to be growing by the month.200 crore Al-kaber Group. Director Sylloge Corporation. stock and barrel. Only to be used for academic purpose) packaged ‘Bhel puri’. like paneer. his strategic work is appreciated by the global marketing and sales strategist. . Indian companies now focused to secure niche and get the consumer loyalty as the base to sustain the future. after rolling out its first store with Bharti in India in May 2009. ‘Chana Masala’. combined with India’s second largest in the world arable area. Hershey to Indian players like Capital Foods. Capital Foods. ‘Samosa’. MTR Foods Ltd is a brilliant example of how an Indian convenience food brand was simply lapped up by a global behemoth for such reasons. the Bentonville giant Walmart.
Other regional brands like Kohinoor. .the real challenge for the India originated brands is to sustain its market share. The wrong selection of the RTC category will make one to face the giant in future.RTC –The future of Indian Brands ( www. The product strategy should be to opt the right RTC product category that’s suits the current brand image and is secured from the big giants. Director Sylloge Corporation. which has rolled out brands like Ching’s Secret and Smith & Jones and plans to introduce three more snacks brands by 2010.internsindia.Priya and Praveen (with Suhana) brand are strategizing to en-cash on brand equity in RTC segment. As the future is of high competition with the biggies. One thing must be remember here that a consumer is paying for convenience and novality so pricing quantification wil be one of the challenge. his strategic work is appreciated by the global marketing and sales strategist. Only to be used for academic purpose) which has been into the business for more than a decade. The uncertanity lies in the market selection of the biggies either mass or premium. It can be assumed by the foreign acquisitions that the channel strategy will be to exploit the existing distribution network. Similar is the case of Capital Foods Ltd. . Article by Siddhartha Bhardwaj.com. but has only recently started brand positioning exercises.
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