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RTE and RTC Foods -A New Era in

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INTRODUCTION AND CUR...
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International Journal of Management and Social Sciences Research (IJMSSR)
Volume 2, No. 5, May 2013
RTE and RTC Foods - A New Era in the Processed Food
Industry “With Special Reference to MTR”
Tazyn Rahman, Assistant Professor, Jaipuria Institute, Ghaziabad
ABSTRACT
India has made lot of progress in agriculture & food
sectors since independence in terms of growth in output,
yields and processing. 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. With the availability of "Retort Technology"
developed by Defence Food Research Laboratory
(DRFL); food processing sector like Ready to Eat ( RTE )
and Ready to Cook ( RTC ) food segment has emerged as
one of the fastest growing sectors in the Indian economy.
The market is worth INR 800 mn in 2010 and shows huge
potential for growth by tapping a larger consumer base.
The changing urban lifestyle of the Indian middle class ,
increasing prevalence of double income nuclear family
structure, rising disposable income, increasingly larger
number of globe-trotting Indians with an experimentative
palate are all favourable demographic factors spurring
the adoption of RTE and RTC foods in India.
The total processed foods market size this year is Rs1500
crore, out of which Ready to Cook foods capture Rs 1275
crore and Ready to Eat capture Rs.225 crore this year and
a expected growth rate of 25 – 30% over next 5 years
shows huge potential for growth by tapping a larger
consumer base. Under Ready to Cook product, Instant
noodles is leading with Rs1000 crore followed by Soups
Rs. 200 crore , Pasta Rs.50 crore and others Rs.25 crore.
According to Tata Strategic Management Group, the RTE
market is expected to grow to Rs 2900 crore by 2015.
In the RTE and RTC segments, the competitive landscape is
largely dominated by 4-5 players, namely MTR, ITC,
Bambino, Priya and Kohinoor Foods. MTR is amongst the
top five processed food manufacturers in India having a
turnover of US$ 261 million with the export market
accounting for approximately 10 per cent of MTR’s total
sales. This paper tries to analyse the marketing strategy
adopted by MTR and opportunities available in the Indian
market and the major challenges that needs to be overcome
to remain in the market.
Keywords
Ready to Eat, Processed food, Retort Technology, MTR
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ISSN: 2319-4421 63
INTRODUCTION AND CURRENT INDIAN
MARKET FOR FOOD PROCESSING
INDUSTRY
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
and Ready to Cook food. It is opening a new window in
world scenario as far as taste & acceptance is concerned.
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.
Today, almost all companies in food processing sector
using "Retort Technology" developed by Defence Food
Research Laboratory (DRFL). Up until a few years back,
the RTE foods market had not really provided any options
beyond the Cup O Noodles produced by Indo-Nissin.
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. The pioneer introduction of retorting technology has
made the sale of ‗Ready to Eat‘ food products
commercially viable with great taste.
The Indian Ready to Eat (RTE) and Ready to Cook (RTC)
food segment has emerged from its early days of being a
fringe alternative to home cooked meal or to eating out. A
fast-paced urban lifestyle, increasing prevalence of nuclear
family structure, rising disposable income, increasingly
larger number of globe-trotting Indians with an
experimentative palate are all favorable demographic
factors spurring the adoption of RTE and RTC foods in
India. Further, the growth of modern retail has provided
unprecedented brand and category visibility to
convenience foods. Also, technological advancements in
packaging and flavor science have brought RTE and RTC
foods centre-stage among urban Indians. In the RTE and
RTC segments, and specifically in pasta, vermicelli and
instant mix categories, the competitive landscape is largely
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International Journal of Management and Social Sciences Research (IJMSSR)
Volume 2, No. 5, May 2013
dominated by 4-5 players, including MTR, Gits, ITC,
Bambino, and Kohinoor Foods. Apart from focusing on
the domestic market, these companies have also expanded
their reach internationally in geographies with a sizeable
Indian Diaspora. On the domestic front, there is an
interesting competitive dynamics emerging. With the
introduction of private labels, e.g. Tasty Treat by Big
Bazaar and in-store, freshly-made snack mixes, e.g. idli
and dosas, modern retail presents a credible threat for
branded RTE and RTC players, who have traditionally
relied upon this channel for increasing their visibility and
reach. The urban consumers are not complaining though,
as they have wider options in product range and prices,
easier availability, and increased convenience. A larger
proportion of urban consumers are experimenting with
RTE/RTC foods on a more frequent basis with the top two
value propositions being 'saves time' and 'tastes good'.
Among the three categories mentioned earlier, pasta and
instant mixes lead in terms of frequency of consumption.
The market of processed food industry in India has been a
new concept which is in its nascent stage. The total
processed foods market size this year is Rs1500 crore, out
of which Ready to Cook foods capture Rs 1275 crore and
Ready to Eat capture Rs.225 crore this year and is expected
annual growth of 25 – 30% over next 5 years shows huge
potential for growth by tapping a larger consumer base.
Under Ready to Cook product, Instant noodles is leading
with Rs1000 crore followed by Soups Rs. 200 crore , Pasta
Rs.50 crore and others Rs.25 crore. According to Tata
Strategic Management Group, the RTE market is expected
to grow to Rs 2900 crore by 2015.
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ISSN: 2319-4421 64
An analysis of the drivers explain the factors for growth of
the industry including the target consumer base for RTE is
expanding, organized retail displays advantages in driving
RTE sales, cold chains development, and government
initiatives. Indian Government is also 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 prices of most brands in this segment range from
Rs25/- to Rs.40/- for a typical 285g dish. The 'Kitchens of
India' range from ITC comes in a tin pack, and is priced
much higher than the rest, ranging from Rs110 to Rs150
for 450g. This brand also finds its way to homes overseas,
where it is mainly sent as a gift item. Purchases for
overseas travel constitute almost 10% of sales in this
category. MTR foods is the largest player in this emerging
market with a near 65% share. The rest of the market is
made up of Satnam Overseas, ITC, Tasty Bites, GCMMF,
Haldiram and other local players.
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 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.
Cost effective in comparison to the Indian cuisine
served by the restaurants in foreign countries.
RETORT & ITS PACKAGING
The water RETORT is an equipment 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 basically consist of laminates or
bounded layers of different packaging films of Polyster-
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International Journal of Management and Social Sciences Research (IJMSSR)
Volume 2, No. 5, May 2013
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.
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.
MAJOR PLAYERS IN INDIAN ETHNIC
READY TO EAT INDUSTRY
 watch live demonstrations. This concept kitchen also

MTR

Kohinoor Foods

ITC

Haldiram

Tasty Bites
Priya
INTRODUCTION OF MTR
MTR Foods Private Limited flagship brand MTR is
amongst the top five processed food manufacturers in
India having turnover is estimated at US$ 261 million with
the export market accounting for approximately 10 per
cent of MTR‘s total sales. MTR, proud for its rich
heritage, tradition of food and hospitality began in 1924
with the establishment of the MTR by the Maiya family in
Bangalore. The restaurant is a city landmark today and
people still stand in queue to savour its unique, completely
authentic dishes. Then in 1975 Maiyas diversified in to
business of convenience foods and instant mixes. As
business expanded modernization and state of art facilities
including dedicated Lab and printing and packaging
facilities were added. MTR is an ISO 9002 and HACCP
certified company which stresses that its products are 100
percent vegetarian and contain absolutely no preservatives.
The company was recently acquired by Orkla, a Norway-
based company for US$ 80 Million. After establishing
itself in the south, MTR is developing its brand in the west
and north Indian markets in line with the rapid expansion
of its product line. MTR's wide range of processed foods is
synonymous with quality, taste and convenience. MTR
manufacture, market and export a wide range of packaged
foods to global markets that include USA, UK, Australia,
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ISSN: 2319-4421 65
New Zealand, Malaysia, Singapore, UAE, Japan and
Oman. Starting with the legendary MTR restaurant in
Bangalore, India‘s silicon valley, now offer 'complete
meal solutions'. Its wide range of products include Ready
to Eat curries and rice, Ready to Cook gravies, frozen
foods, ice cream, instant snack and dessert mixes, spices
and a variety of accompaniments like pickles and papads.
Its deep understanding of culinary expectations and needs
has resulted in many new and innovative products. Its
investments in infrastructure and technology ensure them
to scale rapidly and consumers across the globe count on
to bring them all-natural, wholesome and delicious food
that is also convenient and no-fuss.
The RTE range currently comprises 22 Indian curries,
gravies and rice. In sync with product innovations, the
company has also expanded retail presence significantly;
contemporary ‗Namma MTR‘ is MTR‘s retail chain that
allows customers to experience the wide MTR range.
Namma MTR is split into three sections. One section
showcases the entire range of products. The second section
is a novel concept kitchen where customers can interact
with specialist chefs to learn about MTR products and
works as an ideal platform for feedback allowing the
company to understand and address consumer needs The
third section offers a variety of fastfood — one can either
eat here or get a quick take-away from the express counter
and MTR kiosks now serve consumers across Bangalore
and Chennai.
TYPES OF PROCESSED FOODS
OFFERED BY MTR
The demand for Ready to Eat and Ready to Cook has
captured a large amount of the food retail market in India.
There is a rise in the demand for foods based on traditional
Indian recipes across different states in India and abroad.
MTR has introduce various authentically traditional
recipes and distinctly Regional Indian flavour in its menu
over a period of time. The different types of processed
foods offered by MTR are :
Rice Meals
Rice Meals are the perfect way to enjoy 'home' food
anytime and anywhere. Not only are they easy on one‘s
pocket, they're also extremely easy to make. Just dip the
pouch in boiling water or pop it in a microwave for a
satisfying, wholesome and delicious experience. Available
in a variety of exciting combinations like
Bisibele Bhath Rajma Chawal
Diet Delite Rasam Rice
Sambar Rice Jeera Rice
Tamarind Rice Tomato Rice
Lemon Rice Masala Rice
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International Journal of Management and Social Sciences Research (IJMSSR) ISSN: 2319-4421 66
Volume 2, No. 5, May 2013

Soups Instant Snack Mixes

Its range of soups is heartwarming, healthy and 100% The instant mixes is the result of years of culinary
natural. Carefully picked ingredients are made into a soup expertise. They are subjected to the most rigorous quality
concentrate. This is packed through a special process that procedures to ensure that you get deliciously consistent
ensures the soup retains its mouthwatering aroma and results every time you use them. Just follow the simple
natural flavour. The available verities are: step-by-step instructions on the pack — there's no simpler
way to rustle up such a wide variety of delicious and
Babycorn & Spring Onion Spicy Tomato wholesome Indian snacks.
Mixed Vegetable Simply Tomato
Mulligatawny Spinach & Carrot Bisibele Bhath Masala Upma
Muruku Rava Dosa
Ready To Eat Rava Idli Rice Idli
Ready to Eat dishes are an amazing combination of Rice Dosa Upma & Vada
convenience, taste and variety. They're 100% natural and
have absolutely no preservatives. Its range currently Ice Creams
comprises twenty two delicious and completely authentic MTR Ice Creams are known for their delicious creamy
Indian curries, gravies and rice. They have successfully taste, innovative flavours and value-for-money prices.
adapted technology from the Defense Food Research Available at kiosks, stores and Namma MTRs, they are a
Laboratory, Mysore to make sure each dish has that "just- long-standing favourite with all age-groups
cooked" freshness. The various traditional South and
North Indian dished are : Aamras Badam Drink
Chocolate Drink Health Drink
South Indian : Avial , Kesari Bhath , Khara Bhath , Harbal Drink Thandai
Pineapple Ss Curry
Vermicelli
North Indian : Alu Muttar , Chana Masala , Dal Fry , MTR vermicelli is made with a special process that
Dal Makhani , Navatan Kurma , PaneerButtar Masala , ensures it is non sticky and does not form lumps. Choose
Paneer Makhani, Bhindi Masala, Mix Veg Curry, Palak from short cut, long cut or roasted vermicelli. one can use
Paneer, Peas & Mushroom , Rajma Masala , Veg Polao , MTR vermicelli in so many marvelous ways. Make
Gopi. creamy sweet kheer, savoury upma or toss it with boiled
vegetables for a wholesome pulao.
Frozen Foods
A wide range of frozen foods offers stand alone dishes and KEY CHALLENGES BEFORE READY
delicious combos. Because they are processed and packed TO EAT FOOD SECTOR
with cutting-edge technology, these convenient foods
 There has been an increase in Indian consumers''
retain all their nutritive value and taste.

Masala Dosa + Alu Curry Rava Idli + Potato awareness of long term health issues associated with
Sagu an irregular diet and fast food consumption. Ensuring
Punjabi Chole + Paratha Palak Paneer + and communicating freshness, and offering more
Paratha convenient product concepts should be the areas of

 Indians are taking more interest in taking control of

Alu Bhaji + Paratha Samosa focus for RTE manufacturers in India.
Vada Rice Idli
Ajowan Paratha Alu Paratha their personal health than ever before, there is a
Lachha Paratha Plain Paratha renewed interest in reading information related to
Nawabi Paratha Methi Muttar Paratha health and wellness. Detailed and descriptive
nutritional information on product packaging is vital

 More than half of Indians across all age groups are

Instant Sweet Mixes
MTR Instant Sweet Mixes are a delightful and easy way to
make the most mouthwatering delicacies at home.
Whether it is a special occasion or just a regular meal,
follow the simple step-by-step instructions on the pack and
in gaining the consumers'' trust.
highly influenced by ''better for you'' claims while
making food and beverage choices. RTE foods
should be reformulated to contain low fat and low

 Food and beverages marketed with ''Freshness''

sweeten your family's day cholesterol.

Gulab Jamun claims have more influence on consumers, compared

Badam Feast to ''Authentic/homemade/original'' or even ''No
Vermicelli Payasam artificial additives''. Traditionally, Indians have long

i-Xplore International Research Journal Consortium www.irjcjournals.org

International Journal of Management and Social Sciences Research (IJMSSR)
Volume 2, No. 5, May 2013
believed in the benefits of consuming freshly
 Removing the scepticism surrounding the freshness
prepared food at home.
 A common element across all the current brands in
of RTE foods.
the market today is that most of them produce
vegetarian meals. People need greater variety of
popular international cuisines.
SUGGESTIONS

Introduce RTE salads targeted at the health

conscious.

Explore meal combinations of rice/bread and curries.
Offer RTE foods in packaging formats that allow for

direct consumption from the container.
Introduce greater variety of Canned ready meals,
Chilled ready meals, Frozen ready meals, Dried ready

meals.
Ensuring that the meat product does not spoil. As the
current popular sterilisation methods are not ideal for

meat.
Government should provide relaxation on excise tax

particularly in Non vegetarian foods.
Since technology and packaging costs are high, all
the current players, instead of being present in few,
mainly metropolitan markets, need to look at
expanding their reach in cities with a population of
over one million, which will help bring down prices
indirectly.
i-Xplore International Research Journal Consortium
ISSN: 2319-4421 67
 Educate the customer or adopt strategies for changing
customer‘s perceptions like RTE foods contents high
fat and calorie, used Genetically Modified Foods,
vitamins are lost due used of heat processing and
Preservatives.
CONCLUSION
There is a rise in the demand for foods based of
traditional Indian and International recipes across
different states in India and abroad, manufactures need
to introduce great verities in their menus. There is a need
to expanding their reach in small metro and cities to
increase their sell to reduce the cost. Thus, looking at the
opportunities and challenges, which markets offer to the
manufacturers of Ready to Eat & Ready to Cook sector,
it can be said that the future is very promising for those
who can understand the dynamics of the markets and
make use of them to their best advantage.
BIBLIOGRAPHY
[1] http://www.hindu.com/2007/10/24/stories/20071024
54651900.htm
[2] http://www.mtrfoods.com
[3] http://www.garamchai.com/ReadyToEat.htm
[4] Rahman Tazyn ( 2012 ), ―INDIAN EHTHNIC
RTE‖ - A REVOLUTION FOR THE INDIAN
PROCESSED FOOD INDUSTRY.
[5] http://www.bharatbook.com/market-research-
reports/food-market-research-report/ready-to-eat-
market-in-india-2010.html
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