India’s love for crispy, deep-fried snacks has fueled a thriving market, with McCain carving out a dominant position in the frozen food segment. Having entered the Indian market in 1998, the brand has steadily expanded its presence, raking in over ₹1,200 crore in revenue for FY24, making it the largest player in its category. Once known primarily for french fries, McCain has since broadened its offerings to cater to a wider audience.
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According to filings with the Registrar of Companies (RoC), McCain India’s revenue grew by a modest 3% year-on-year, reaching ₹1,214 crore in FY24, up from ₹1,172 crore in FY23. Its primary income source remains the sale of its fried snack products, distributed through a mix of traditional retail, foodservice partnerships, and quick-commerce platforms like BlinkIt, Swiggy Instamart, and Zepto. Additionally, the company earned ₹31 crore from interest on deposits, bringing total revenue to ₹1,245 crore in FY24, compared to ₹1,189 crore the previous year.
Raw materials remained the biggest cost factor for McCain, accounting for nearly 44% of its total expenses, rising to ₹493 crore in FY24. Employee costs also saw a sharp increase, climbing 19% to ₹100 crore. Meanwhile, McCain ramped up its advertising spend by 63%, reaching ₹88 crore as it sought to maintain its competitive edge in an increasingly crowded market. Other operational costs—covering power, logistics, contract labor, storage, and management fees—pushed total expenditure up to ₹1,125 crore from ₹1,020 crore in FY23.
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The aggressive spending, particularly on advertising and management expenses, took a toll on McCain’s bottom line. Its net profit dropped 29.4%, falling from ₹126 crore in FY23 to ₹89 crore in FY24. The company’s return on capital employed (ROCE) and EBITDA margin stood at 15.28% and 4.58%, respectively. On a per-unit basis, McCain spent ₹0.93 to generate every rupee in FY24.
Despite its strong position, McCain faces growing challenges. With health-conscious consumers shifting away from fried foods and major conglomerates like ITC and Godrej entering the segment, competition is fiercer than ever. The brand often finds itself on the defensive when compared to “better-for-you” alternatives. However, India’s deep-rooted love for crispy snacks ensures that demand won’t vanish overnight. Strengthening its cold chain logistics network could be a game-changer, enabling McCain to penetrate deeper into smaller towns and rural markets. If the company can navigate these headwinds effectively, it should be able to regain its growth momentum—unless internal hurdles prove to be a bigger obstacle.
