Image Source: MBA Rendezvous
Aug 27, 2018,
With its existing cold chain and distribution network across India, the Gujarat Cooperative Milk Marketing Federation (GCMMF) under the brand name of Amul is now targeting rapidly growing Rs 1,000-crore frozen snacks market.
Amul has launched six products under the newly set up category of ‘Happy Treats’ frozen potato snacks and markets products through modern trade and e-commerce platforms.
“We currently have two product categories in the frozen snacks segment — potato-based and paneer-based. The production is outsourced to a factory in North Gujarat but we provide our own ingredients,” said Sodhi.
RS Sodhi, Managing Director, GCMMF said that our cold chain is available across India and we have a large distribution network in place. This gives comfortable access to a potential market for frozen snacks.
Amul Happy Treats provides six varieties in the frozen potato snacks category, including aloo tikki, french fries, potato wedges and veggie stix, among others.
Priced at a competitive rate, Amul is confident of its brand recall value and quality in the segment, which is dominated by multinationals.
However, being a new entrant to the ₹1,000-crore frozen snacks market, Amul is still making efforts to gain volumes as the market leaders already command the majority of the market share. “This is our first year in this segment and we are still penetrating the market. We are competitive to the rest of the players,” Sodhi stated.
But Amul’s entry into the frozen snacks segment does not pose any challenge as such to the existing players.
Bengaluru-based Innovative Foods Limited, one of the pioneers of frozen foods, operating under the brand name Sumeru, does not see much of an mpact from Amul’s entry to the market.
“There is a potential market in metros and tier-2 cities for frozen snacks. Over the years, we have been growing at a double-digit rate. Amul’s entry will not affect the competition as volume and product innovation will hold the key to success. We currently have about 10 per cent market share in the frozen snacks category,” said Subin Ahammed, General Manager, Marketing, at Sumeru.