Britannia Industries wants more than just bakery and dairy products on its plate. Its new range of Healthy Start mixes of upma (semolina), poha (flattened rice), porridge and oats is aimed to garner a slice of the breakfast market. Estimated at Rs 500 crore, the branded market for breakfast food in India comprises ethnic products such as dosa, upma and idli mixes, ready-to-fry parathas and acquired tastes like cornflakes, oats, muesli, cereal bars, fruit juice and various spreads. It might be growing at 25 per cent, but is still a speck compared to the Rs 8,000-crore branded biscuits market of which Britannia has around 38 per cent share. Britannia also has stakes in non-biscuit baked products such as bread and cakes and in dairy products, with the last segment contributing close to 10 per cent over Rs 3,400-crore turnover.
The packaged food market for breakfast is emerging as a heavily contested segment with Kellogg India, Marico, PepsiCo and MTR Foods flexing their muscles for some years now. Players such as Nestlé and Amul have consolidated their hold with new products. Hindustan Unilever is reportedly testing its nutritional bread spread, Astra Gold, for the breakfast market.
Britannia’s foray into the breakfast market is in line with the company’s aim to ride the healthy foods bandwagon and preparations to face an influx of players in the packaged foods industry. The move also makes sense as the biscuit segment, which contributes the biggest chunk to the company’s revenue, is headed for a shake-up. Britannia was recently pipped to the top spot by arch rival Parle, with ITC close behind, while local players nip at its heels. Multinational companies such as Kraft Foods have a small presence and erstwhile partner Group Danone is gearing up for India entry.Unibic Australia, the Rs 300-crore biscuit maker, too is looking for strategic partners for its Indian arm, Unibic India which has revenues of around Rs 75 crore in India.
Britannia has already moved to strengthen its dairy arm by buying out New Zealand-based Fonterra’s stake in their joint venture called Britannia New Zealand Foods. Breakfast solutions, developed by its team for new business development, is next.
The new range of products will be made of low starch grains, with real frozen vegetables and without artificial food ingredients. Britannia says it will leverage its supply chain of buying cereals for biscuits and other bakery products. To begin with, the company will stay out of cold breakfast options such as cornflakes, given the average Indian’s preference for hot food. “Our work with cereals and the aim to include nutrition in our products led us to this category,” says Britannia Vice-president (new business development) Atul Sinha.
With Indian, Chinese and continental flavours in its tastemakers, Britannia is banking on taste to generate trials. Manufacturing and packaging have been commissioned to two production units (in Punjab and Tamil Nadu). The price ranges from Rs 34 for its upmas to Rs 55 for porridge in their base packs (150 gm-200 gm). Mumbai, where these products are being launched first, will help it gauge the potential demand and time line for an all-India roll out.
