Tata Soulfull, a division of the renowned FMCG conglomerate Tata Consumer Products, is gearing up to unveil a fresh offering named “Oats Plus” in Tamil Nadu later this month. This strategic decision comes on the heels of its triumphant debut in Kerala about three months ago, as confirmed by a high-ranking company executive.
“We have launched oats plus which are plain oats, in Kerala. This gave entry us into the INR 250–300 crore category. In fact, even though it is early days, the responses have been good,” said Prashant Parameswaran, MD and CEO.
As to initiating the launch of the product in these two States, he said, “This is primarily because it is a large market where the consumption of oats is high.”
Furthermore, the key objective is not to encourage consumers to entirely replace their current dietary choices but rather to encourage them to include millets as part of their diets, he emphasized.
The product will undergo a gradual rollout, and the company is actively exploring potential markets for its introduction. Parameswaran highlighted the significance of these two markets, emphasizing their substantial consumption levels within the category. Additionally, it’s worth noting that around 40% of Soulfull’s business originates from the southern states.
Prior to this, the company had notched a successful launch of masala oats approximately a year ago. In the context of India, oat consumption is forecasted to hit 50,000 tonnes in 2023, as reported by Indexmundi. Furthermore, on a global scale, the oats market is expected to reach a substantial $10.8 billion by 2032, with a compound annual growth rate (CAGR) of 5.9 percent from 2022 to 2032.
Furthermore, the company has set forth ambitious goals to unveil six to eight additional product categories, catering to both children and adults. Presently, the brand already offers products spanning across 5–6 categories, encompassing breakfast cereals, kids’ snacks, muesli, granola, masala oats, plain oats, and wafers.
Commenting on Soulfull’s contribution to Tata Consumer Products’ revenue, the CEO said, “Over the next two to three years, we can expect to see some sizable contribution to the overall performance.”
The brand is actively engaged in increasing its production capacity, including the recent inauguration of a new facility in Indore with an annualized capacity of approximately 2,000 tonnes. Additionally, they manage another production plant in Bidadi, boasting a capacity ranging from 3,000 to 4,000 tonnes.