Magazine
Indian food and grocery market is the world’s sixth largest, with retail contributing 70 per cent of the sales. It contributes around 8.80 and 8.39 per cent of Gross Value Added (GVA) in Manufacturing and Agriculture respectively and is growing at a Compound Annual Growth Rate (CAGR) of 20 percent. But when it comes to snacks, consumer demands are always changing. The need to bring in new items acts as a constant pressure for the manufacturers in this domain. Secondly, trust is something that is primary while consuming a food item. The product needs to meet set government standards in order to be acceptable in the market.
Very few companies are able to build that level of trust over time and Kishlay Foods is one of them. The company started out in 2001 as biscuits manufacturer and is now one of the biggest snacks manufacturers in the country. Kishlay is a homegrown brand. Though a large part of its growth comes from snacks, it also deals in Sweets, Namkeens, cookies, biscuits, cakes, rusks, etc. Recently we have also launched instant noodles. So Kishlay is not only a snack company but a complete packaged food company.
Krishna Marari Bajaj, Founder, Kishlay Foods states, “The major opportunities for the company
will lie in enhancing the penetration in existing markets of North-East and Eastern India by means of existing products basket and new launches. Another factor that will drive growth will be an expansion in the new geographies. The company is targeting a CAGR of 25% over the next five years.”
Living Up To Expectations
The major expectation of consumers is that they look for quality and range of baskets. The company has been able to cater to both of these demands of the clients at a competitive price. Being one of the largest snack manufacturing companies in the North East, the company has laid a strong foundation for its next level of growth in the last 20 years. Currently, the company has products in more than six categories and handles more than 170 SKUs. The company’s high proportion sale comes from MRP 5 and MRP 10 packets. Through its strong distribution network, the company has a presence in almost all remote areas of North-East and Eastern India where these products cater to the masses.
Sumit Bajaj, CEO mentions, “The approach towards maintaining the highest quality standards are very strict checking of incoming raw materials and quality control at the time of production and ultimately providing the best quality packing material. The variety of products that the company provides its customers with and the kids-based products it offers differentiate it from its competitors.”
The variety of products that the company provides its customers with and the kids-based products it offers differentiate it from its competitors
Looking at the Future
The company was incorporated in 2001 whereas the commercial operation began in 2003. Initially, it started with biscuits manufacturing, and later the company expanded into potato chips and western snacks. In 2018, the company entered into ethnic Namkeen space and last two years company has added four more categories to its baskets. At the moment the company has its presence in around 17 states and also exports to Bhutan. At the moment the company has 5 operational plants at 4 locations(including 3-P units). The CEO concludes, “We will continue to add more categories in our existing geographies and expand snack business in new geographies.”
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