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A file picture of Mr Ravi Naware, CEO of ITC Foods,
with the Gharana range of products from Kitchens of India |
ITC reworking strategies for
‘Kitchens of India’ products To target mainstream consumers in Western markets
Mohan Padmanabhan Kolkata, Sept. 17 ITC Ltd, which forayed into the branded & packaged
foods business a little over five years ago through launch of its ‘Kitchens of
India’ brand, is now re-working strategies to go after the mainstream consumers in
the mature markets of the US, the UK and Canada.
In order to assure global consumers of the
highest standards of food safety and hygiene, the company is now actively engaged in
assisting its outsourced manufacturers in implementing world-class hygiene standards
through HACCP (Hazard Analysis and Critical Control Points) Certification.
Talking to Business Line here recently, Mr
Ravi Naware, CEO of the Foods Division, said exports of the ready-to-eat items were now
picking up, “and we feel it is time we graduated from the exotic ethnic foods
category (aimed mainly at the Indian diaspora) to mainstream foods, considering that
volumes too are now on the upswing”.
The Kitchens of India range now covers as
many as 25 products.
Mr Naware said volumes were getting better
in the western markets, and innovative promos such as enclosing ‘free’ Indian
classical music CDs with the ready-to-eat packets (done between March and July this year
in the US) have proved highly successful. “This has encouraged us to target the
mainstream consumers now.
” He said ITC’s aim was be
present in every exclusive food store of the US (there are said to be some 6,000 such now)
in the next three years.
FOCUS ON PACKAGING
Citing consistent quality besides total compliance with local food laws as the prime
requisite for such international market bonding, Mr Naware said special focus now was on
new packaging and compliance with international labelling laws. ITC’s Kitchens of
India products already enjoy the Kosher Certification, accorded to quality food products.
Pointing out that leadership in the branded
and packaged foods business warranted a complete understanding of the supply chain
logistics for agri produce, he said the company’s main strength was its close
business ties with the farming community. And “this in turn has helped us to sustain
the quality standards in the foods business”.
Mr Naware said several new and innovative
products in the foods business, covering the four broad market categories of ready-to-eat
foods, staples (atta), spices, confectionery and snack foods (brand categories are
Kitchens of India, Aashirvad, Sunfeast, Mint-O and Candyman), were in advanced stages of
development at ITC’s product development facility in Bangalore.
On the domestic front, in biscuits, he said
in the last one year or so, all key ingredients like wheat, sugar and edible oils have
witnessed sharp price increases (on average, around 20 per cent plus), squeezing the
margins for all manufacturers substantially.
Mr Naware said it was also quite difficult
to understand how a common man’s snack food item such as biscuit can attract the
highest VAT slab of 12.5 per cent.
