Kraft Heinz-HUL merger will make up tiny slice of India pie

The reason is the modest size of the food businesses of Hindustan Unilever and Kraft Heinz in India

The audacious bid for Unilever by Kraft Heinz last week, while intended at creating a food and beverage giant globally, will not mean much for India. The reason for this is the modest size of the food businesses of Hindustan Unilever (HUL) and Kraft Heinz in the domestic market. 

The unlisted Kraft Heinz, which has health food drink Complan, Heinz ketchup and Kraft cheese (launched recently) in the country, has sales of only around Rs 1,400 crore here, according to industry sources. HUL’s packaged foods business, according to its FY16 Annual Report, contributed 6.6 per cent or Rs 2,111 crore