MTR’s Prerna Tiku on adapting to modern tastes as it looks to expand market and growth 

One of the brands that has been consistent with offerings is MTR. Founded in 1924 with the establishment of the MTR Restaurant by the Maiya family in Bengaluru, the company in these many years has created a wide range of products from ready-to-eat curries and rice, ready-to-eat cook gravies, frozen food, ice-cream, instant mixes, spices and variety of pickles and papads, and milk beverage drinks, among others. To fuel further growth, MTR became part of Norwegian Company M/s Orkla in 2007. The company’s revenue from operations rose 19% to Rs 2183.15 crore in FY23 from Rs 1834.36 crore in FY22, as per regulatory filings accessed by Tofler. Its net profit increased 2.89 times to Rs 337.96 crore in FY23 from Rs 116.77 crore in FY22.

In a conversation with BrandWagon Online, Prerna Tiku, chief marketing officer, MTR, talks about the company’s innovative strategies to stay relevant, marketing strategies, and product expansion plans, among others. (Edited Excerpts)

What is MTR’s contribution to Orkla India’s revenue and how does the brand perform in different markets?

At MTR, we contribute approximately 50% to Orkla India’s total turnover of Rs 2,300 crore. Our year-on-year revenue growth is driven by product innovation, market expansion, and acquisitions.

Karnataka, accounts for around 50% of sales, with a market penetration of about 90%. In Andhra Pradesh, we have a market penetration of 40% and have doubled our sales over the last five years. Our retail footprint includes 2.50 lakh outlets in Karnataka and 1.50 lakh in Andhra Pradesh and Telangana, each, respectively. 

We operate 11 factories, including a new ready-to-eat sweets factory in Tumkur, which represents a Rs 10 crore investment. 

How has MTR adapted its brand strategies over the past century to address changing consumer preferences and market dynamics in the food industry?

We call ourselves a 100-year-old young brand. While we are proud of our roots, we have strengthened them over the decades. Innovation has been at the core of MTR’s journey, allowing us to stay relevant with consumers. Indian food is an integral part of our lives. We all enjoy traditional Indian dishes at home, but the scale of making food and the expectation for convenience have changed over generations.

Our presence spans multiple formats, from single spices like chilli and turmeric to blended spices like Sambar masala and Garam masala. Moving along the convenience continuum, we offer mixes that require just the addition of water or another ingredient, making it easy to prepare recipes. Finally, we have ready-to-eat products that need only hot water, with no cooking required at all. This approach allows us to cater to various consumer needs across the convenience spectrum.

What are the most important marketing channels for MTR, and how do you determine which ones to focus on in your strategy? Additionally, which state drives the maximum revenue and sales? 

We have a strong presence in Karnataka and Andhra Pradesh, reaching nine out of ten households in Karnataka. Our strategy caters to both urban and rural segments, which influences our marketing approach.

For a wider consumer reach, television remains important. However, for our metro-centric categories, we have increasingly shifted to digital as our lead medium. Digital allows us to target consumers more effectively, leveraging the growing adoption of the Internet. We can customise messages based on consumer behaviour; for example, we can tailor messaging for travellers, office-goers, or working moms. This targeted communication is a crucial part of our marketing strategy.

The state that drives the maximum revenue and sales for us is Andhra Pradesh, followed by major metros across the country such as Delhi NCR, Mumbai, Hyderabad, and Bengaluru. In these metro markets, modern trade and e-commerce channels play a significant role in our business.

Can you provide an overview of your distribution strategy across all channels, detailing the split between e-commerce and offline sales? 

As a brand, we have a wide reach, with nearly 5 lakh  retail outlets across the country. General trade still constitutes the majority of our business, accounting for over 75% of our sales. However, e-commerce is rapidly growing for us, making up about eight to nine per cent of our total business, with quick commerce representing more than 60% of our e-commerce sales.

How do events like setting the world record for the largest dosa enhance MTR’s brand visibility and contribute to your overall return on investment?

We wanted to celebrate MTR’s 100-year journey, emphasising our South Indian legacy and authenticity. Dosa is a key part of that legacy and resonates with consumers worldwide. Recently, we entered the chilled segment with fresh batters, including our signature red rice dosa batter. We used this batter to create the world’s largest dosa, which symbolised the journey and popularity of dosa as a dish.

Can you elaborate on your product expansion plans, particularly regarding health-conscious options like red rice dosa and wet batters? How has your approach to product development evolved over the years in response to changing consumer preferences?

A significant portion of our portfolio, over 50%, still consists of spices and masalas. This focus on quality, including the ingredients we source and the recipes we provide, facilitates the conversion from loose spices to packaged spices. There are prevalent concerns around loose spices regarding quality and adulteration, which drives this shift.

In rural areas, the conversion to packaged spices is still ongoing, influenced by various health dimensions. Regarding processed foods, particularly in the ready-to-cook and ready-to-eat segments, our goal is to present Indian food as nutritious and convenient. For example, idli is a steamed breakfast item often enjoyed with sambar, which is considered one of the most nutritious dishes due to its inclusion of vegetables and protein.

We have expanded our offerings to include multigrain dosa, oats idli, and ragi dosa, utilising millets and other healthy ingredients. Additionally, we aim to revive traditional recipes that are inherently nutritious but have lost their relevance due to changing cooking skills.

Can you provide insights into your global expansion strategy? What are your future plans for expanding your ready-to-eat and sweets portfolio internationally?

We are currently present in over 42 countries and continue to strengthen our presence in these markets. We are focusing on expanding our reach through both offline and online channels, as many of these geographies are evolving in terms of how consumers are reached. We have a presence in ethnic stores, mainstream outlets, as well as the online ordering space. Our growth strategy focuses on both the increasing Indian diaspora abroad and the rising popularity of Indian foods among non-Indian consumers, who are now more exposed to Indian cuisine through restaurants and other means.

Can you elaborate on your pricing strategy, especially given your position as an affordable brand? 

Our pricing strategy, like any other part of our marketing approach, aims to ensure accessibility for a wide set of consumers. We are very conscious of maintaining quality, so we leverage technology along with our strengths in procurement and sourcing to manage costs effectively during manufacturing. This allows us to offer consumers the best value for their money.

In  South markets, we also introduce entry price points to encourage trials. High barriers to trial can prevent consumers from trying our brand initially, so we focus on penetrating deeper into our geographies and expanding our consumer base. Pricing plays a crucial role in this strategy.

What are top selling products across geographies? 

We view Karnataka not just as a state, but as a collection of unique culinary clusters. Recently, we organised a Karnataka Food Festival to celebrate this diversity. Our Cuisine Center of Excellence, which consists of chefs who travel across the state, gathers insights on traditional recipes passed down through generations. We have compiled a repository of over 3,000 unique recipes.

During the festival, we invited home cooks from across Karnataka to collaborate with our team, showcasing more than 100 recipes over two days. Attendees could experience these dishes firsthand, and we also launched a coffee table book to make these recipes accessible for home cooking. This initiative highlights our commitment to understanding local cuisine, as well as popular dishes like puliyogare, sambar, and gulab jamun.

In Andhra Pradesh, we have recently launched a range of Andhra podis, which are chutney powders and lentil powders used to sprinkle on idlis and rice. These products complement our existing offerings, which include popular items like sambar. 

In Delhi, our South Indian breakfast items, such as idlis and dosas, are very well-received, along with poha. This diverse range allows us to cater to various regional tastes and preferences across the country.

From what we have observed, South Indian dishes are popular internationally and our ready to eat products are quite popular there.