HomeNewsLocal FMCG brands surge ahead, outpacing national competition with double-digit growth

Local FMCG brands surge ahead, outpacing national competition with double-digit growth

BIRA 91 Taproom

BIRA 91 brings new vibes to Delhi with second taproom at Pacific Mall, Tagore...

Building on t͏he ͏succe͏s͏s of ͏i͏ts ͏fiv͏e͏ existing outl͏et͏s nation͏wide͏, ͏BIRA 91 h͏as͏ pr͏oudly͏͏ opened ͏͏͏its sec͏on͏d͏ Taproom in Delhi.͏͏͏ ͏Sit͏uated in the vibr͏ant͏...

IHCL reports 12% YoY growth in net profit, reaching INR 248 Cr in Q1

Indian Hotels Company Ltd (IHCL), th͏͏͏e ͏o͏perato͏͏͏r of Taj hotels, ha͏s recorde͏d͏ a 12% ͏y͏͏ear-͏͏o͏͏n-year i͏͏ncrea͏s͏͏e͏ ͏in ͏co͏nso͏l͏idated͏ net͏ pr͏͏ofit͏ for Q1͏͏͏ FY͏25, dri͏ven...

Local FMCG (Fast-Moving Consumer Goods) brands are swiftly expanding, intensifying their competition with national brands. They have surpassed national brands by achieving double-digit sales growth in the last two quarters, taking advantage of a decrease in inflation.

Regional brands like Rungta Tea, Balaji Wafers, Mario Rusk, and Bovonto soft drinks are bolstering their presence by expanding, diversifying, and enhancing brand recognition. They have emerged even stronger in the aftermath of pandemic disruptions.

Rungta Tea, operating in markets such as Uttar Pradesh, Rajasthan, and Bihar, is establishing tea parlors akin to Chai Point and Chaayos while assembling an e-commerce team to expand its footprint.

“We are growing faster than many national brands in markets we are present in and have relationships with distributors and customers. Now we are moving to the next level with tea parlours and ecommerce, while continuing with quality and innovation,” said Girjesh Rungta, managing director of Rungta Tea.

According to a recent report by Kantar Worldpanel, local brands experienced a 12.7% growth in volume from last April to this April, surpassing the 8.2% growth rate of national brands. This growth was attributed to the innovation and expanding distribution networks of regional brands, as stated by the consumer monitoring firm.

Rajkot-based snacking firm Balaji Wafers, which has been aggressively wooed by PepsiCo’s Indra Nooyi and other large snacks giants, is setting up its first plant in North India, in Lucknow. “Our expansion plan is to go across India, well beyond Gujarat, one territory at a time,” Chandubhai Virani, Founder of Balaji, said. “We will continue to follow our value-for-money strategy.”

Executives mentioned that the movement of regional market leaders expanding their reach nationwide is evident across various product categories such as snacks, tea, biscuits, detergents, soaps, and toothpastes.

“The key is ownership. We see regional brands primarily driven by founders who are directly involved in operations,” said Sumit Agarwal, Co-Founder of Vitrak ExtendReach, a platform for traditional trade distribution. “That gives them the nimbleness and quick response time to market challenges.”

They also have “razor-sharp focus on the category”, he said. “Unlike, say, an HUL, these brands don’t focus on different categories at the same time,” Agarwal said. “Also, they operate with no frills – they are able to give enhanced value to the consumer.” Bovonto soft drinks is laying out plans to take its products such as orange and ginger ale fizzy drinks, beyond its core markets in Tamil Nadu and Andhra Pradesh. Mario Rusk has roped in actor and singer Diljit Dosanjh as its first brand ambassador.

Latest articles

Teriyaki Madness expands to Lynchburg with new franchise agreement

Amer͏ican re͏staurant chain Teriyaki Madness (TMAD) has ink͏ed a franchise agreement to debut its...

Pernod Ricard’s Brancott Estate teams up with Made for Drink to elevate wine pairings with new crisp varieties

Pernod Ricard's Brancott Estate has teamed up with Made for Drink to͏ craft two...

Birds Eye enters UK chips market with ‘Crispy Chips’

Birds Eye is making its debut in the chips mark͏et with ͏the laun͏ch of...

Freja launches innovative bone broth shake line for convenient, on-the-go nutrition

Freja, a ͏r͏eno͏wn͏ed͏ bone broth bra͏͏nd, has un͏vei͏led its la͏test͏ in͏n͏ovati͏on:͏ Bone Broth Shakes.͏...

Related Articles

Parag Milk Foods bolsters management team with nine key executive appointments

Parag Milk Foods, a manufacturer of dairy and FMCG products, has brought on board...

As profits skyrocket, Balaji Wafers steps up to big leagues with INR 5,000 Crore sales

Balaji Wafers, the regional snacking company that attracted attention from multinationals like PepsiCo for...

FMCG sector in India to grow at 7-9% in 2024: Report

The FMCG sector s͏ecto͏r is pro͏jected to main͏tain a steady growth͏ rat͏e of͏ 7-9%...
× Drop a, Hi?