New Delhi: Guiltfree Industries Limited, a consumer goods subsidiary of RP-Sanjiv Goenka Group, has entered the ethnic snacking market with the launch of namkeens under the Too Yumm brand. This move aims to establish a stronger presence in the fast-moving consumer goods (FMCG) sector.
Products such as aloo bhujia and salted peanuts have already been introduced in over 100,000 outlets and will be endorsed by actor Varun Dhawan.
“This is our entry into the Indian ethnic space, the entire namkeen or the Indian ethnic space as we define it, is over a ₹30,000 crore category. When you look at the organized play in that category, it’s about 14,000 crore to 15,000 crores; this is growing at a 14% CAGR. That’s the space that we want to target,” said Shashwat Goenka, sector head, retail and FMCG, RP-Sanjiv Goenka Group, addressing the media virtually on Thursday.
Too Yumm sells potato chips, and multi-grain chips and other snacks.
The company aims to achieve ₹100 crore in sales for its namkeens portfolio in the first year of launch. This comes as demand for packaged foods remains high due to increased consumer preference for convenience and branded foods. However, the Indian snacks and namkeens market is dominated by major players such as Haldiram’s, Bikaji Foods International, and Bikano Snacks.
RPSG Group has outlined plans to eventually build a ₹10,000 crore FMCG business. At present, FMCG contributes 6.5% to RP-Sanjiv Goenka Ventures’ sales, which includes Evita snacks and Dr. Vaidya’s ayurvedic products, as well as snacks and personal care under Guiltfree Industries.
“We were very well entrenched in the overall western snacks portfolio. We thought now is the time where Too Yumm can actually elevate itself because it occupies a space of taste and health together in the consumers’ mind. So we can go beyond being limited to one category of western snacks and move into Indian snacks, which is in fact a larger category when you look at the overall snacks market,” he added.
For the year ended 31 March 2022, Guiltfree Industries reported total income of ₹167 crore. Goenka also mentioned that the company is open to acquisitions in the FMCG space, particularly in categories such as foods, personal care, and Ayurveda.
“We are always exploring new targets in this segment and we continue to do so. We are very clear that any acquisition will be done with a long-term view and should fit into the larger strategy of FMCG that we as an organization have set up,” he added. The company has a three pronged strategy for its consumer goods business with a play in—personal care, foods and Ayurveda. “If things fit into these three broad strategies and the specific blueprint we have for each of them, that’s when we will seriously look at it. We don’t want to just acquire for the sake of acquiring,” he said.
In 2021, Guiltfree Industries Ltd, forayed into the ₹70,000 crore personal care category with the launch of shampoo, conditioners, face wash, and face creams under the Naturali brand.
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