Under the brand name of The Yellow Diamond Snacks, Prataap Snacks Ltd reported Rs. 1,037.7 crore income for the year March 31, 2018, enormous stature for a company that started with a seed capital of just Rs. 15 lakh in 2009-10. It has crossed the milestone up by 15.5 per cent.
In the past eight years, the Indore-headquartered snack maker has transformed itself from a single-product company to one with multiple branded products in its portfolio – including extruded snacks, chips, namkeen and sweet snacks – challenging rivals such as PepsiCo (Frito-Lay), Haldirams and Parle.
“FY18 has been an exciting year for Prataap Snacks. We surpassed the milestone of 1,000 crore in revenues this year, an important step in our growth journey,” said Amit Kumat, MD and CEO of Prataap Snacks.
“While it is not easy to fight the strong distribution and brand equity of a multinational firm, a local player may have an advantage of making necessary changes in products and strategy sooner, with low overheads.
“We are not totally dependent on big and elaborate consumer research like the MNCs, because we believe it slows down product innovation. I make regular visits to markets get ideas and get those weighted through small researches if needed,” he added.
Kumat said the range of Yellow Diamond snacks has found flavour with children, in particular the puff rings. The company is one of the highest advertising spenders on kids’ channels on Indian TV.
Analysts tracking the sector also noted the company is winning with its competitive pricing strategies, with 99 per cent of its products priced within the Rs 5-10 bracket, including its newest product, Yum Pie, a sweet snack.
“We had some issue while launching of Yum Pie because of summer and chocolate was melting. That is behind us now and we are trying to develop a few more products in the sweet snack category,” said Kumat.
“We are looking at 18-20 per cent growth for the next three to four years and that will mainly come from geographical expansion, new product introduction and something good in sweet snack category.