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  1. 1. Food & Beverages
  2. 2. Key Players
  3. 3. Category share in packaged food TPK
  4. 4. Indian Food & Grocery Market Outlook
  5. 5. Indian Food & Grocery Market
  6. 6. Snacks
  7. 7. Packaging
  8. 8. Packaging
  9. 9. Packaging
  10. 10. Display Stand
  11. 11. ITC’s endeavor on snacks segment• ITC claims that it has done its homework well and spent close to two years for developing Bingo.• The entry was prompted by the fact that there are few players in this segment. “We found that there was only one organised large player at the national level in the packed snacks segment apart from some regional players.• There is a big opportunity for us,” says an ITC executive. He adds quickly that the market for the packed-snack-on-the-go segment in India is around Rs 2,000 crore and ITC is looking at grabbing a 50 per cent share of the market at the earliest.• “We are offering a wide range to ensure that the consumer is not restricted to a monotonous taste”.
  12. 12. ITC’s endeavor on snacks segment• The action is also visible at retail points. Small retailers, almost all of whom also sell ITC cigarettes, claimed they had been promised a premium if Bingo display was better.• With its sole objective of deep distribution, ITC introduced mega-size wafer trolleys outside most mom-and-pop outlets.• Lay’s, the top selling brand reacted with its own version of trolleys parked next to Bingo’s display. Of course there were some places where ITC Bingo blocked out its competition.• Across the country, Bingo has laid claim to the large format outlets by tying-up with big retailers like Future Group’s Food Bazaar.
  13. 13. Wafer Snacks market• Wafer snacks market size – about Rs. 6500 Cr• Growth rate – 25% annual• Branded market size – Rs. 2000 cr.• Major players – Frito-Lay’s, Bingo, Haldiram, Parle• Potato based chips and snacks account for 85% of total snacks market• Market share (Nielsen) – Frito Lays -45%, Haldiram -27%, Bingo -16%• Rest is divided among other niche and regional players – Parle, Balaji, Gopal ji, etc
  14. 14. Current Indian Players Frito Lay’s ITC Haldiram Parle Agro Parle Products• Lay’s • Bingo • Haldiram • Hippo • Parle• Kurkure wafers• Uncle • Smart Chips Chips• Lehar Namkeen• Cheeto’s
  15. 15. Product need
  16. 16. • Snack food generally comprises bakery products, ready-to-eat mixes, chips, namkeen and other light processed foods. The snack food industry is worth Rs 100 billion in value and over 4,00,000 tonnes in terms of volume.• Though very large and diverse, the snacks industry is dominated by the unorganized sector with almost 1,000 snack items and 300 types of savouries are sold across India. The branded snacks are sold at least 25% higher than the unbranded products. The variety is almost mind-boggling with specialties from all regions, which have gained national acceptance.
  17. 17. • The industry has been growing around 10% for the last three years, while the branded segment is growing around 25% per annum to stand at Rs 5,000-Rs 5,500 crore, due to various reasons like Multiplex culture, snacking at home while watching TV, pubs and bars (where they are served free). AC Nielsen’s retail audit shows that the large sales volumes are due to a marked preference for ethnic foods, regional bias towards indigenous snacks and good value-for-money perception. Of course the branded segment is much smaller at Rs 2,200 crore, which is what makes it so attractive to food companies that are looking at bigger shares. Frito lay commands a share of 45%, followed by Haldiram’s at 27% and ITC at 16%. The rest is divided between a handful of new entrants, wannabes and many regional players.
  18. 18. • Of the wide range of snacks available, potato chips constitute a sizeable segment of the Indian snack food industry, according to India Infoline.• Ruffles, Hostess, Cheetos and Uncle Chips. Frito Lay’s story is an example of how American recipes were adjusted to satisfy local tastes. Procter & Gamble’s Pringles brand of potato crisp, unlike many other potato based Indian snack foods that are fried. P&G currently imports the Pringles product and therefore the product has been priced at a premium and is marketed to a micro-niche.
  19. 19. Strengths• Abundant availability of raw material• Vast network of manufacturing facilities all over the country.• Vast domestic market• Urbanization
  20. 20. Opportunities• Rising income levels and changing consumption patterns• Favourable demographic profile and changing lifestyles• Integration of development in contemporary technologies such as electronics, material science, bio-technology etc. offer vast scope for rapid improvement and progress.