Feb 20, 2019
Gits Food, the maker of Instant mix and convenience food is targeting a double-digit revenue growth in FY20 largely driven by new product launches and business strategies implemented in FY19.
Sahil Gilani, Director, Sales and Marketing, Gits Food informed that there are a lot of exciting new products as well as business strategies being implemented this year and because of this the company expects that its growth rates will only get better each year on.
Currently, the RTE and RTC market in India is worth Rs 1,000 – 1,200 crore growing at 10-15 percent year-on-year. Pioneer in the RTC-RTE space in the country, Gits Food enjoys a market share of 25 percent in these segments currently.
According to Gilani the market for RTE and RTC are at a nascent stage but with rapid urbanisation, busier lifestyles, and diminishing culinary skills, however, the demand for convenience foods have a bright future. Hence the industry needs to come together and increase consumer awareness about the category, and break the myths associated to catapult this growth.
Gits Food has a pan-India presence with over 1,000 distributors across the country with a diverse product portfolio, divided into categories such as instant mixes (breakfast, snacks and dessert mixes), ready meals, and dairy. All these are available for sale in India as well as abroad. However, the west is their strongest market.
GITS consumers are not just Indians and NRIs but also foreigners. It exports to over 40 countries, and is selling its ready meals such as dal makhani, biryani and pav bhaji in international chain stores like Walmart, Costcos, Woolworths, and some more.
GITS has started its own e-store, and is also available on Flipkart, Amazon and Big Basket.Amazon and Big Basket are the two major online drivers for the company and the revenue from online is less than 5 percent at present. He expects online sales to touch double-digit in the coming years.
With the consumers’ growing needs and requirements for healthy products, the company extended to breakfast mix portfolio to include superfood mixes like brown rice and flax seeds idli mix, oats idli mix, ragi dosai mix, brown rice and flax seeds dhokla mix and brown rice dosai mix. It has also launched an organic and vegan version of ready meals abroad. Given the increasing demand for super-healthy products, ragi, oats and brown rice range were well received by the consumers.
The company that forayed into dairy business last year has two segments in the dairy category – fresh and long shelf life dairy products. Products like ghee, dairy whiteners are sold nationally as they have a longer shelf life.
Fresh products such as milk, curd, and buttermilk are sold regionally in the west mainly in Mumbai and Pune markets. For the fresh category, the company plans to remain regional and expand deeper in the west.
Gits Foods has launched a lot of new products and even entered new categories over the past year or two. According to Gilani, over the coming years, the lines between the RTC and RTE category will become more blur in their offerings.