While Mother Dairy aspires to be a food biggie in the near future, presently its fruit and vegetable venture is constantly threatened with entry of
biggies like Reliance. Sunil Bansal, Fruits and Vegetables Division of Mother Dairy, however, defends his turf saying that “other players have a presence far away from the city hubs, but we have a strong presence in the neighbourhood. Moreover, we are comparatively low priced and factors like our ‘touch and buy’ policy have made us consumer friendly,” he snaps.
Agreed that such strategies are enabling the company to clock staggering sales worth 400 tonnes of fruits and vegetables everyday, but what Bansal should remember is that retail biggies are not the only threat in the processed foods and vegetables market, which Rabo India Finance estimates will be a Rs.8,200 billion by 2009-2010. ITC and Dabur have also entered the game with all cylinders firing. Dabur already commands the Rs.500 crore packaged fruit based drink market (Dabur’s Real has a market share of 57%). So is Safal under threat? Replies Thachil, “In processed peas, Safal is the market leader and we are just two years old in juices. It will take us time to capture the market. Safal is doing well in exports too.” Not a hollow boast! Last year Safal generated a cool Rs.100 crores worth of exports.
biggies like Reliance. Sunil Bansal, Fruits and Vegetables Division of Mother Dairy, however, defends his turf saying that “other players have a presence far away from the city hubs, but we have a strong presence in the neighbourhood. Moreover, we are comparatively low priced and factors like our ‘touch and buy’ policy have made us consumer friendly,” he snaps.Agreed that such strategies are enabling the company to clock staggering sales worth 400 tonnes of fruits and vegetables everyday, but what Bansal should remember is that retail biggies are not the only threat in the processed foods and vegetables market, which Rabo India Finance estimates will be a Rs.8,200 billion by 2009-2010. ITC and Dabur have also entered the game with all cylinders firing. Dabur already commands the Rs.500 crore packaged fruit based drink market (Dabur’s Real has a market share of 57%). So is Safal under threat? Replies Thachil, “In processed peas, Safal is the market leader and we are just two years old in juices. It will take us time to capture the market. Safal is doing well in exports too.” Not a hollow boast! Last year Safal generated a cool Rs.100 crores worth of exports.
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Source: IIPM Editorial, 2008
An IIPM and Management Guru Prof. Arindam Chaudhuri's Initiative
Source: IIPM Editorial, 2008
An IIPM and Management Guru Prof. Arindam Chaudhuri's Initiative
