Disha's Weekly Wisdom: India's FMCG brands have appetite for growth

Indian brands like Gopal Snacks and Chatha Foods and Heritage Foods are hunting for an edge through the IPO path or through tech investments. The main reason is demand is strong in items (gathiya, bhujiya, lassi) that were traditionally considered as not happening. Read Disha Chakraborty's Weekly Wisdom to understand the trends

21 Mar 2024 | By Disha Chakraborty

Rajkot-based Gopal Snacks's journey began with Rs 4,500 investment - and on a cycle

So Gopal Snacks made its debut on Dalal Street. Lists at 12% discount at Rs 351 per share against the issue price of 401. Another discount listing.

What very few know is Rajkot-based Gopal Snacks's journey began with Rs 4,500 investment - and on a cycle.

Today, the company has three manufacturing facilities in Nagpur and Rajkot and Modasa (both in Gujarat). It is a market  leader in the gathiya business in Gujarat, competing with Haldiram.

According to Frost and Sullivan, the Indian savoury snacks market is poised to grow at an 11% CAGR over FY23–27. Today PepsiCo’s Lay’s and ITC's Bingo dominate the chips and snack pellets with 51% share of the marketMeanwhile desi snacks which include gathiya, namkeen and bhujiya, rule over 49% of the market. A segment dominated by Haldiram (Delhi and Nagpur), followed by Balaji Wafers and Bikaji Foods and now Gopal Snacks.

Other than the IPO boost, and its fleet of 262 trucks and 617 distributors, the key to the company's success is the Rs 5 snack pack.  As reported by a business daily, the "low-margin stock-keeping units" maketh Gopal Snacks. This translates into 70% from Rs 5 packs and 12% from Rs 10 packaging. An interesting case study for our packaging converters who believe in big and bigger.

Meanwhile, processed and frozen food company Chatha Foods has also launched its IPO on 19 March. Chatha Foods reported a revenue of Rs 70.78 crore and a net profit of Rs 3.41 crore in the April-September 2023 period. The company intends to raise Rs 34 crore from this issue.  

Chatha Foods supplies premium quality meat products to Domino's, Subway, Burger King.

Watch this space for more.

Heritage opts for SIG technology in Telangana

Heritage Foods has teamed up with SIG packaging technologies at its plant in Sampanbole village (Medchal District) in Telangana. The dairy company which offers milk and milk-based products announces the inauguration of a Ultra High Temperature (UHT) milk plant.

As per a press note issued by the company, the new plant will manufacture milkshakes, flavoured lassi, cold coffee, buttermilk, Whey-based energy drink and UHT milk. The facility will be able to produce nine different SKU's from 80 to 200ml to reach diverse consumer groups and cover a range of price points.

Formed in 1992, it all began for Heritage Foods in Chittoor district. Back then, it was 1000 litres of milk. Today, 17 lakh litres daily. The group has notched up Rs 3300-cr  in FY 23. And serves 1.5 million households to-date. Just for context, Amul (India's largest FMCG brand) boasts of a turnover of Rs 72,000-cr in 2023.

Latest Poll

The packaging industry is confused by recycling and sustainability rules in India. What is the biggest challenge?

Results

The packaging industry is confused by recycling and sustainability rules in India. What is the biggest challenge?

Shortcomings in EPR policy

 

22.22%

Inadequate infrastructure

 

11.11%

Shortage of recycling firms

 

16.67%

Lack of consumer awareness

 

50.0%

Total Votes : 18

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