KCL takes price war to breakfast tables

Delhi-based KCL is entering the breakfast cereal market with prices 10 per cent lower than its rivals. The company has readied 15 products, including cornflakes and porridge, under the brand Murginns for launch in December this year.

The breakfast cereal market is estimated at Rs 250 crore a year and is dominated by Kellogg's, which has a 48 per cent market share, followed by Mohun Meakins 22 per cent and Pepsico's Quaker Oats 10 per cent.

Though KCL does not have the expertise in the FMCG retail business, it makes popular products such as Complan and Glucon-D for Heinz India. The company is banking on its expertise in the food processing business and its association with multinational companies such as Heinz to expand.

"The food business will be a high-growth area in India in the coming years and we shall offer better products at an affordable price points," said Sanjeev Khemka, director, KCL.

KCL is also in the process of shortlisting an advertising agency to promote its products. "We want to be present on the shelves across India before we start advertising our products," said Khemka.

The company is banking on product innovation and aggressive pricing to move its brands. Murginns breakfast cornflakes will be launched in three variants: Choko Poko, Honey Pops and Honey Rings. KCL is also planning to incorporate local tastes such as Doodh-Jalebi in its breakfast offerings under the same brand.

The company will also have a oat-based porridge variant to its instant porridge range, currently available in the wheat variant. The porridge is available at Rs 40 for 200 gms against Rs 50-55 offered by other players.

The Rs 250-crore breakfast cereal market in India is led by the cornflakes segment, followed by oats, muesli and other local variants.

KCL has also entered the confectionery segment with cream-filled crispy wafers under the CTIX brand name. CTIX is available in two variants - chocolate and strawberry. KCL plans a pan-India presence across 5,000 stores by December this year.

The company is also looking at acquiring a family-owned food business abroad to expand its product portfolio. "We will launch a revolutionary product next year once the acquisition is complete. We are looking at milk-based products too," said Khemka.

According to experts from the food and beverage market, international brands such as Kelloggs (cornflakes and cereals), Pepsi (Quaker Oats) and Indian brand Amul are all looking to strengthen their existing brands.

CEREAL FORAY

KCL has readied 15 products including cornflakes and porridge under the brand Murginns by December, with prices 10 per cent lower than its rivals

The breakfast cereal market is estimated at Rs 250 crore a year

It is dominated by Kellogg's (48 per cent), Mohun Meakins (22 per cent) and Pepsico's Quaker Oats (10 per cent)