New ITC, Nestle brands to liven up packaged foods space

To take on multinational rivals like Nestle India, FMCG major ITC Foods plans to foray into new categories such as noodles in the next few months.

The company is beefing up research and development activities for its new launches.

As part of its growth strategy, ITC Foods is extending its manufacturing capacity and distribution network to sustain growth momentum. MNC Nestle India plans to enter into eight new categories, including breakfast cereal.

With their new launches, ITC and Nestle India will soon slug it out to gain market share in the branded nutritional foods sector in India.

Encouraged by the response to its pasta brand ?Sunfeast Pasta Treat? ITC plans to launch noodles under the brand name Sunfeast.

?ITC?s entry into this segment will heat up the competition more for Nestle?s Maggi. In fact , ITC and Nestle are now promoting their brands on the health platform in India,? said an analyst based in Mumbai.

When contacted by FE, Chittanranjan Dhar, CEO, ITC Foods declined to comment on the company’s new launches.

?Encouraged by our performance in 2009-10, we are planning to expand our manufacturing facility and distribution network this fiscal . We are focusing on our existing categories to drive volumes,? he said. Incidentally, ITC Foods has already taken its premium brand ?Kitchens Of India? to international markets namely the Brazil, Germany and the USA and the UK .

Nestle India is looking at couple of acquisitions in India to expand its product line in domestic markets, said Antonio Helio Waszyk, CMD, Nestle India. ? We are planning to expand the manufacturing facility for Maggi noodles in India. Despite competition, we have not lost our market share in the branded noodles sector,? Waszyk told FE.

With a market share of 70 %, Maggi currently leads the pack in the branded noodles sector in India. Recently, Hindustan Unilever Ltd has forayed into this sector with its new launch in the southern states in India.

? We are sharpening our focus on `Indianised ‘concepts to woo diverse target audience. India and China will account for about 70% of the parent’s growth in the next decade, he said.

Last year, Nestle entered the branded pasta sector with the launch of Maggi Nutra-licious Pazzta.

? With this launch, Nestle directly competed with ITCs Sunfeast?s Pasta Treat , a lead player in the branded pasta sector,? said an analyst.