FMCG companies vie for a bite of branded snacks growth pie

FMCG companies such as Parle Products, ITC Foods, Parle Agro, PepsiCo India and CavinKare are looking at fresh packaging initiatives, relaunches, new launches and expansion of distribution and manufacturing capacity to drive volumes.

For instance, Parle Products, the makers of Parle-G biscuits, is revamping its new launch — Parle Namkeen — with new packaging. It’s competitor ITC Foods is sharpening its focus on optimisation of supply chains and smart commodity sourcing to promote its brand Bingo.

After acquiring the Mumbai-based Garden Namkeens in 2009, CavinKare Private has set up a new manufacturing facility in Thane, Maharashtra at the cost of R75 crore two months ago to increase the production of Garden snacks for its national roll out.

With changing lifestyles, the branded snacks sector is expected to grow further by 30% this year, predict industry analysts. Meanwhile Parle Agro, makers of Hippo, is expanding its distribution network by 40 to 50% to market the snack brand across the country. Currently, PepsiCo India leads the pack in this sector and the other players include ITC 's Bingo, Parle Products, Haldiram and Parle Agro's Hippo.

On Parle Products' strategy, B Krishna Rao, group product manager, Parle Products, said the new launch was test marketed in selected cities of Uttar Pradesh and Madhya Pradesh for a few months.

"After seeing the response to it, we are now taking it to other markets.

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