In an effort to lower the cost of everyday necessities for the average person, the Modi administration has redesigned the Goods and Services Tax (GST) system. The GST Council authorised a two-tier rate structure of 5 and 18%, which will go into effect on September 22 as part of this significant change, lowering the tax rates on the majority of necessities.
The goal of the move was to reduce the price of commonplace goods like toothpaste, soap, and biscuits. According to a report by moneycontrol.com, consumer product producers have informed tax authorities that this will not directly result in a decrease in the cost of common small packs, such as INR 20 toothpaste sachets, INR 10 soap bars, or INR 5 biscuit packets.
Speaking further on the development, Yashmit Gala, CEO, Galaji Spices stated, “The concern raised by FMCG players about not being able to reduce MRPs on low-value packs after the GST rate cut is very real. In categories like food staples and spices, the pricing of smaller SKUs is often already compressed to the last rupee to remain attractive in rural and value-driven markets. When you factor in packaging, logistics, and retailer margins, there is hardly any room left to adjust MRPs further without eroding viability. Consumers may expect a visible drop in prices, but in practice, it is operationally difficult to rework pack sizes or price points in such a short window. Instead, the benefits of GST reduction are more likely to reflect in supply chain efficiencies, improved trade margins, and promotional offers rather than a direct cut in printed MRPs of small packs.”
Why Sudden Price Change Can’t be Implemented?
Indian consumers are very accustomed to these typical price points, according to the media report. Customers may become confused and have their basic purchasing patterns disturbed if the price is lowered to odd figures like INR 9 or INR 18 rather than neat INR 10 or INR 20. Typically, packs of INR 5, 10, or 20 are impulsive purchases that are frequently made without much consideration.
Unexpected price changes may cause confusion or reduce sales. By expanding the number of products in the pack while maintaining the same price, businesses are passing on the GST benefit rather than lowering prices. For instance, extra biscuits may now be included in a pack of biscuits priced at INR 20.
What This Means for Consumers’ Daily Purchases?
Practically speaking, consumers won’t notice significant drops in the sticker price of minor necessities. Instead, consumers will discover that some extra biscuits, soap, or toothpaste are now included in the same INR 5, 10, or 20 packets.
This plan maintains known pricing practices while guaranteeing that customers profit from the tax savings. Given customer behaviour patterns and the logistical difficulties associated with shifting price points for mass-market goods, industry analysts think this strategy makes sense.
A larger initiative to streamline India’s indirect tax structure and lower consumer costs included the reduction of GST rates and the removal of several tax bands. The increase in product supply at the same price point helps consumers obtain better value for their money, even though the benefit might not be immediately apparent in reduced MRPs.
Quick
Shots
•Everyday items like toothpaste, soap, and biscuits
expected to become cheaper.
•Companies told tax authorities that MRPs on
low-value packs (INR 5, 10, 20) cannot be reduced.
•Price points like INR 5/10/20 are deeply ingrained
in buying behavior; odd pricing may confuse consumers and hurt sales.
•Instead of lowering MRPs, firms are increasing
product quantity (e.g., more biscuits in the same INR 20 pack).
•No major change in sticker prices; consumers get
better value for money at the same familiar price points.
•Maintaining price points is strategic for
mass-market sales and avoids disruption of impulse buying patterns.
Britannia Industries Limited is an Indian food firm formed in Kolkata in 1892 with a small investment of Rs. 295 and is now headquartered in Mumbai. The firm is most known for its many brands of biscuits, but it also sells a wide range of packaged foods, dairy products, and bread to suit a variety of lifestyles.
It produces everyday food products such as Marie Gold, NutriChoice, Milk Bikis, Good Day, and Tiger, and is one of India’s most trusted brands. Not only in metropolitan areas but also in rural areas, this brand has become a household name.
It spends some of the country’s most prominent digital marketing expenses to maintain its significant presence in the Indian market.
Britannia has a market capitalization of INR 1.30 trillion (June 2024); its dairy business generates about 4-5% of total revenue, which generated INR 600 crore in FY23 and has a distribution network of 100,000+ outlets; and its bread vertical is the largest in the organized bread market, with an annual income of INR 450 crores.
Annual Growth Rate of Net Sales Value of Britannia Industries Limited From FY 2016 to FY 2024
Let’s look at the different marketing strategies of Britannia, pricing, product, advertising, and more in detail.
Britannia has primarily concentrated on the creation of new products and the promotion of nutrition and wellness. Taste, food, and life experiences are closely linked in Britannia’s marketing and social media efforts. Britannia has also used celebrities like Salman Khan and Deepika Padukone to promote its different marketing campaigns. In the baking, biscuits, and dairy industries, it has effectively occupied a significant market share. The brand has relied only on traditional celebrity marketing, ignoring the power of Influencer Campaigning, which may significantly influence social media networks.
The corporation competes in the market based on an extensive distribution network, cost-effectiveness per unit, production facilities close to markets, new goods, skilled personnel, and a wide range of products.
Let’s understand the Britannia Marketing Mix in detail in the section below.
Marketing Mix of Britannia | Marketing Strategy of Britannia
Britannia Product Strategy
Product Category
Description
Biscuits
– Main product category, major revenue contributor – Includes Britannia Tiger, Britannia Good Day, Britannia Nice Time, Britannia Treat, Britannia 50-50, Little Hearts, Bourbon, Britannia Marie – Various flavors for different consumer preferences
Bread and Bakery Products
– Long-standing history of production – Includes various types of bread and fruit bread – Other bakery products available
Dairy Products
– Expanded into the dairy segment – Includes cheese, butter, ghee, and curd – Produced through partnerships with dairy firms
Cakes and Rusks
– Variety of cakes and rusks offered – Caters to different tastes and occasions
Nutri Choice Range of Products
– Targeted at health-conscious consumers – Offers healthier biscuit options under the Nutri Choice brand
Product Mix Britannia | Marketing Strategy of Britannia
Britannia produces a wide range of biscuits and dairy items. Britannia’s product strategy comprises mostly cakes, dairy, biscuits, bread, and rusk in its marketing mix.
Britannia Marie Gold, Britannia Nutrichoice, Britannia Little Hearts, Britannia Pure Magic, and more famous brands are among Britannia’s product list. The most well-known product is Britannia Tiger biscuits. Tiger cookies are also sold in countries such as Australia, Malaysia, and Indonesia. Thanks to cooperative agreements with dairy firms, Britannia can now make and sell butter, ghee, curd, and cheese. Its products are primarily aimed towards India’s middle class, which makes up most of the population. The Britannia products and its price list can be found on its website.
Food production is a highly competitive sector. Competition is at the heart of Britannia’s marketing strategy and price strategy.
Also, because the significant sector is price-sensitive middle-class individuals, Britannia is forced to compete on price. Britannia strives to bundle its products, which lowers the cost of its products. This is notably evident in their items made for family packs. The pricing strategy of Britannia allows businesses to make more money from customers who are prepared to pay more for healthier products and perks. Britannia’s prices are comparable to those of its competitors, mainly Parle’s, and they are practically identical.
Britannia Place Strategy
Britannia employs an extensive distribution network following the Fast-Moving Consumer Goods (FMCG) model, strategically appointing distributors to ensure its products are widely available across various markets. Britannia distribution channel follows the FMCG model, ensuring wide product availability through urban retail stores, rural networks, and modern trade partners. The company boasts a strong presence in urban areas and is actively working to enhance its reach in rural regions, addressing the unique challenges of distribution in these areas. Britannia effectively utilizes modern trade channels, partnering with major retail chains such as Big Bazaar and D Mart to maintain a prominent presence in high-traffic retail environments. Britannia has also expanded its market share internationally through strategic foreign deals and joint ventures, including collaborations with companies like Peek Frean in the UK and acquisitions such as Parry’s, enhancing its global reach.
Britannia Promotion and Advertising Strategy
Britannia employs various strategies in its promotional marketing mix, including television commercials, print advertisements, and billboards. Britannia has negotiated deals with celebrities to market its brand. However, the deals have varied depending on the product. The sports industry accounts for a more significant portion of its promotional operations. Cricket bats with the Britannia emblem, which international players approve, are an essential advertising tool. Britannia also markets its product as “vital for excellent health,” which appeals to consumers who are more concerned about the nutritional content of what they eat.
Britannia Segmentation Targeting and Positioning (STP)
Segmentation
Segmentation aids in comprehending the many types of clients present in the community and the characteristics linked with each category.
Kids, adults, and youth are the three groups of demographic segmentation. There are Treat fruit rolls and Tiger biscuits in the Kids category, while in the Adult category, there are Good Day and Cream Crackers. Youth biscuits include Little Hearts and Cream Biscuits.
Targeting
Following segmentation, targeting is how the organization chooses which consumer categories it wants to serve.
Britannia has spent the last 100 years focusing on the next generation of children and the elderly through a variety of goods. The Britannia Tiger is low-cost and aimed at low-income individuals, whilst the Britannia Marie Gold is aimed at families. Treat fruit rolls are intended for use by youngsters on rare occasions.
Positioning
Positioning is the final phase of the process. After determining the client it wants to target, the corporation selects what sort of messaging or attitude to take while selling the product.
Britannia has persuaded moms to buy Tiger biscuits for their children, Little Hearts as a snack for teenagers, and Good Day as a daily cookie that brings joy to everyone’s life.
Britannia’s Social Media Strategy
In today’s digital world, being active on social media is very important for any brand. Britannia uses social media effectively to connect with people, share its message, and achieve its communication goals.
The business has launched a new ad for Bourbon, one of its most popular products.
The brand concentrated on friendship in this campaign. It related it to people whose lives revolve around their friends, creating a movement centered around completing joyful moments with closest friends.
Britannia World Cup Campaign
Britannia Ad Campaign
Cricket fever has long been prevalent in India. As a result, Britannia saw this cultural connection as a vast potential and developed the “Britannia Khao World Cup Jar” campaign. This promotion combines two of India’s most powerful industries: food and cricket. Whoever bought a Britannia product with the Britannia Khao World Cup Jao promo SMS the promo code and the consumer would get a guaranteed reward for every 100 runs in the World Cup.
Britannia Good Day Campaign
The brand conducted a campaign with Bollywood actress Deepika Padukone. She advised people to focus on the objective and pursue the genuine deal, with the tagline “Khushiyon ki zidd Karo” being the simple translation. In plain English, this message stated that every day would be a good day if one stayed happy and pursued happiness.
By offering a trustworthy basis and high-quality products, Brittania has effectively created and generated trust among consumers. Brittania’s marketing strategy is focused on the product, with the firm emphasizing flavor and nutrition.
To attract more customers, Britannia’s marketing strategy and approach must adapt to the current market trends.
FAQs
How many Britannia plants are there in India?
There are 15 Britannia factories/plants in India.
Who is the owner of Britannia Industries?
Wadia Group is the parent organization of Britannia Industry.
What are Britannia Industries products?
Britannia is one of the oldest existing food processing brands in India. Some of its products include:
Biscuits
Bread
Cakes
Rusk
Dairy products- Cheese, Beverages, Milk and Yoghurt
How does Britannia generate revenue?
Britannia generates revenue from its two business segments that includes:
Bakery Products
Dairy Products
It makes 90-95% of its revenue from the biscuits and bakery segment. Dairy products generate 4-5% of its total revenue.
Whenever there is a discussion about the most corrupt and unethical corporations in the world, Nestlé always tops the list. Nestlé is one of the biggest companies in the world, with hundreds of products being sold all around the globe. It is no surprise that Nestlé dominates the processed and packaged food market.
Nestlé has around 339,000 people working for it in its 344 factories in 188 countries. But why is a company with such a huge influence and market called evil and unethical? Let’s start with its history. Began its journey in Switzerland in 1867 and was founded by Henry Nestle. He wanted to start his own line of milk-based baby formula for babies who were unable to receive breast milk due to a variety of factors.
Even if the formula is only dried milk, vegetable oils, and sugars, the key factor is the company’s marketing, which has led people to feel that the formula is essential for their babies’ growth and wellness and that breast milk is insufficient. You can see how misguided this is because most medical experts agree that breast milk, and only breast milk, is the greatest nourishment for infants.
The company is also facing numerous lawsuits for other frauds and unethical deeds it has committed. Despite this, the company continues to reign supreme, raking in billions of dollars every day. In this article, we will be discussing the reasons why is Nestlé evil and is the most hated corporation in the world.
Nestlé controls approximately 2000 brands around the world, with its baby formula being the most popular. However, the company’s product has a dreadful track record.
The company expanded its baby formula market in the 1970s and began advertising its baby formula as superior to breast milk, attempting to manipulate customers by spreading the narrative that its formula is beneficial for infants and provides all of the necessary nutrients that breast milk cannot. They even bribed medical specialists to testify on their behalf. This is so ethically terrible that no one can dispute it.
The ad campaigns encourage mothers to replace breast milk with baby formula. The most horrible thing Nestlé did was hire “saleswomen” in developing regions of Asia and Africa and send them to give medical advice to mothers and hand them free samples of the baby formula.
Under-educated mothers of underdeveloped countries believed that women were dressed as nurses. The free samples were weighed and packaged strategically to last just up to the day when the mothers were fully dependent on the formula and stopped lactating themselves.
The company’s horrible PR stunt led to thousands of infant deaths as the mothers were swapping Nestlé’s baby formula for breast milk. This left the children deficient in the necessary nutrients that breast milk provides.
The worst impact was in the underdeveloped regions of the world, where mothers were diluting the formula with more water to save money and were unknowingly starving the children. Breast milk provides all the elements vital for the development of the baby and its immune system. With a lack of natural milk, the babies from underdeveloped regions with no access to clean water suffered from many diseases and died.
The Baby Killer – Nestle is Evil
It resulted in thousands of deaths, and the formula was even named ‘Baby Killer’ by the media. When the situation got worse and people started getting mad about this and protesting, the World Health Organisation, in 1981, passed an International Code of Marketing of Breastmilk Substitutes, condemning the unethical practices. But the damage was done. The company, often criticized as “Nestle is evil,” tried to clear their name and started mentioning in their advertisements that breast milk cannot be replaced.
Even though the company is trying its best to keep its baby formula’s image squeaky clean after the big “Baby Killer” blunder by promoting ads encouraging mothers and talking about the benefits of natural milk, they are still pushing the baby formula and bribing health workers in countries with lenient laws and still getting away with it.
Nestlé Pure Life Bottles – Nestle Unethical Practices
Nestlé is also one of the leading producers of packaged water bottles. The bottles are packed with single-use plastic, leading to pollution of the environment and killing millions of sea creatures. According to several reports, during beach cleanings, most of the plastic bottles collected are Nestlé brands, which proves that Nestlé is one of the major contributors to water and land pollution. And it’s not just the plastic bottles that harm the environment; the water the plastic bottles harms the environment equally, if not more.
No matter what fancy pictures of springs, lakes, and mountains the labels have, almost all the water in the packaged bottles of the Nestlé evil company is from the ground. Nestlé’s evil company is blamed for exploiting the groundwater of the areas where the public needs it the most and selling it for their profit.
It is clearly unethical and dangerous for the environment. The company is also guilty of taking water sources from countries where people are forced to drink dirty water as Nestlé acquires clean water sources for their bottled water plants.
In 2013, the corporation began diverting abundant clean water from Pakistani locals and using it for their factories, leaving the population with no other choice except to drink sewage and sludge water. Not just in Pakistan; the evil corporation is doing the same thing in numerous undeveloped countries with abundant natural resources that Nestlé can readily exploit due to tax regulations.
Nestlé’s Use of Child Labours
Nestlé Fair Trade – Nestle is Evil
Nestlé sells a wide range of chocolate goods made with cocoa obtained through forced and trafficked child labor. During the 2000s, the company, along with several other chocolate companies, was accused of using child labour to produce cocoa for their chocolates. Nestlé claimed to get rid of this problem and create ethically correct products by the year 2005. But it has not done much regarding the issue.
The company claims that most of the unpaid child labor involved in chocolate production is done by children working on their parents’ farms. Because the farmers cannot afford school and need all the working hands possible to afford food, shelter, and other necessities, the reasoning is absurd because Nestlé is the one who pays them. Thus, they should do something to help the farmers who work for them. They should offer them assistance and raise the amount of money they pay to the farmers.
They tried to improve their image by including ‘fair trade’ marks on their labels to showcase that the chocolate bars are made with ethically sourced cocoa, but it didn’t solve the main problem, which was illegal child labor. They still have farms and plants where forced child labor is taking place, but they haven’t done much about it and do not provide any proof that the products sold are ethically made.
Nestlé’s Factory Waste Polluting The Environment
As discussed earlier, the company’s plastic water bottles are the major culprits of water and land pollution. The single-use plastic is the main reason for littering and water pollution. The company has claimed to replace all their single-use plastic bottles with recyclable ones. But there is no progress in that department yet.
The plastic bottles are damaging the environment, and the waste generated by the company’s factories is causing irreversible damage to the environment and marine life. In 2020, a Nestlé milk powder plant in France released its biological waste in the local water bodies, killing around three metric tons of fish. And even after making many colossal promises and claims for reducing plastic waste and use, the company has increased its share of reusable, recyclable plastic by only 1%.
According to the latest reports from the Ellen McArthur Foundation, the company has done nothing, made zero progress in the environmentally safe sector, and has not addressed the waste they are generating at all.
Health Concerns
In July 2009, the FDA and CDC issued a cautionary statement urging consumers to avoid Nestle Toll House refrigerated cookie dough due to an E. coli outbreak affecting over 50 individuals across 30 states. This contamination resulted in hospitalizations and tragically claimed one life. Nestle responded by expressing grave concern, acknowledging their product’s implication in the illness and fatality, and subsequently implementing more rigorous testing and inspection procedures for raw materials and finished goods to meet higher quality standards.
In a larger-scale crisis in 2008, Nestle faced the Chinese Milk Scandal, where their products were linked to six infant deaths and numerous hospitalizations due to melamine contamination. Despite Nestle’s denial, the Taiwanese government detected traces of melamine in their products, prompting Nestle to dispatch specialists from Switzerland to enhance chemical testing at five Chinese plants. The incident became a major global food safety concern, with China reporting over 300,000 victims, resulting in severe legal consequences, including executions and life sentences for those implicated.
Nestle Evil: The Most Evil Business in the World
Price Fixing
In both Canada and Germany, Nestlé, along with Hershey and Mars in Canada and Nestlé alongside five other companies in Germany, faced investigations that raised concerns about their business practices. In Canada, the Competition Bureau scrutinized allegations of price fixing, leading to office raids and subsequent class-action lawsuits, resulting in a $9 million settlement. Despite the settlement, none of the companies admitted liability, and the former president and CEO of Nestlé Canada now faces criminal charges related to the case.
Simultaneously, in Germany in 2008, Nestlé, known for its unethical practices, along with Mars and five other companies, underwent a parallel price-fixing investigation. This inquiry was prompted by substantial, nearly simultaneous price hikes, up to 25%, in the chocolate and confectionery market. German police conducted office raids during the probe, and the companies justified the price increases by citing rising raw material costs. These scandals not only added to the regulatory challenges faced by the companies but also stirred international concerns about the transparency of the industry’s pricing practices.
Promoting Unhealthy Foods and Deceptive Labeling – Nestle is Evil
Nestle, a company that has positioned itself as a leading health and wellness company, has faced criticism for promoting unhealthy food. A report by the UK Consumers Association revealed that seven out of the top fifteen high-sugar, fat, and salt breakfast cereals were Nestle products. Nestle has been accused of targeting children with their marketing practices.
In an interview, Nestle’s chairman, Mr Brabeck, defended his breakfast choice of a dark chocolate tablet as a balanced start to his day. However, this attitude further fueled the perception that Nestle was not prioritizing healthier alternatives in its product offerings.
In addition to concerns about unhealthy food, Nestle faced accusations of deceptive practices in Colombia in 2002. The company was ordered by the police to decommission 320 tons of imported powdered milk because of false relabeling, which included a different local brand and altered production dates. This raised ethical and legal issues and underscored potential health risks for consumers.
Controversy Surrounding Maggi
The Maggi Controversy – Nestle Unethical Practices
In 2015, revelations emerged in India that Nestlé’s popular noodles brand, Maggi, contained elevated levels of lead and MSG beyond the legal limits. This discovery prompted India to file a lawsuit against Nestlé, seeking nearly $100 million in damages for violating food safety standards. In response to the controversy, Nestlé took a proactive measure by voluntarily withdrawing Maggi products from the market until they could ensure their safety for consumption. This strategic move allowed Nestlé to salvage its reputation and evade the hefty fine initially demanded by Indian authorities.
The Maggi incident in India is often associated with concerns about Nestlé’s adherence to food safety regulations and underscored the importance of swift action in crisis management for multinational corporations, including allegations related to “Nestle crimes.” Nestlé’s decision to remove the product from the market showcased its commitment to addressing the issue and restoring consumer trust, albeit with significant financial implications.
Nestlé’s Involvement in Campaigns Against Maternity Leave
In recent years, Nestlé has faced criticism for allegedly funding campaigns against expanding maternity leave in the U.S.
Sources of Criticism
Reports: Groups like the National Women’s Law Center claim Nestlé donated to organizations opposing maternity leave.
Media Investigations: Outlets like The Intercept and The Guardian reported Nestlé’s ties to lobbyists against maternity leave laws.
Former Employees: Some ex-staff alleged Nestlé pressured workers and indirectly supported anti-maternity leave efforts.
Key Concerns
Women’s Rights: Critics say opposing maternity leave harms women’s ability to recover from childbirth and care for their babies.
Infant Health: Short maternity leave may prevent mothers from breastfeeding.
Financial Gain: Critics believe Nestlé opposes maternity leave to boost infant formula sales, as working mothers may rely more on formula.
Ethiopian Debt Repayment
In 2002, Nestlé asked Ethiopia to pay back a $6 million debt, even though the country was facing a terrible famine. Many people were upset and sent over 8,500 emails to Nestlé, asking the company to stop. Nestlé then changed its mind and said it would put any money it got from Ethiopia back into the country.
In 2003, Nestlé agreed to take only $1.5 million and gave that money to three charities working in Ethiopia: the Red Cross, Caritas, and the UNHCR.
Russo-Ukrainian War
In 2015, a Ukrainian TV channel didn’t hire a Ukrainian-speaking woman as a cooking show host. The sponsor, Nesquik (a Nestlé brand), reportedly wanted only a Russian-speaking host. This caused protests in Kyiv. Activists accused Nestlé of being unfair to Ukrainian speakers and helping spread Russian influence. They also criticized Nestlé for selling products made in Russia and warned of a boycott.
After Russia invaded Ukraine in 2022, many Western companies left Russia—but Nestlé was slow to act. It said it wanted to protect its 7,000 workers in Russia. Nestlé stopped shipping non-essential goods but kept making baby food and hospital food there. Ukrainian President Zelensky asked Nestlé to stop doing business that supports the war.
In November 2023, Ukraine’s anti-corruption agency listed Nestlé as an international sponsor of the war.
Conclusion
Nestlé, a multibillion-dollar corporation with complete market dominance, has faced numerous controversies. Despite engaging in several unethical and illegal activities, the company seemingly evades significant consequences, thanks to its vast wealth, power, and influence in lawmaking as a large corporation.
Nestlé’s adept marketing strategies, coupled with its ability to easily influence its consumer base through advertisements featuring bold claims and promises, contribute to a facade that diverges starkly from the harsh reality. The company has earned the dubious reputation of being dubbed “the most evil company of all time,” a label fueled by ongoing Nestle controversies that shed light on questionable business practices.
FAQs
Why is Nestlé bad?
Nestle is bad and is known as an unethical company because of the use of child labor and the manufacturing of plastic bottles that damage the environment.
Does Nestlé have a bad reputation?
Yes, Nestle is known for human trafficking, child labor, and manipulating customers.
Why is Nestlé being boycotted?
Nestle was being boycotted because it manipulated uneducated mothers by selling its infant formula in poor countries, leading to malnutrition.
Is Nestle a bad company?
Nestle is criticized for labor practices, water usage, marketing tactics, and plastic pollution. However, they try to source ethically and be sustainable. Ultimately, judging their “goodness” depends on your ethics.
Who owns Nestle?
Nestlé is publicly traded, so no single entity owns it entirely. However, major shareholders include institutional investors like BlackRock, and the company itself holds a small percentage.
Why is Nestle evil?
Nestle is so evil because Nestle is criticized for child labor, formula marketing, water overuse, and plastic waste. These issues have worsened Nestle reputation and made it an “evil company”.
Why is Nestle unethical?
Nestlé is seen as unethical due to issues like exploiting water resources, promoting baby formula over breastfeeding, child labor in cocoa farming, and opposing maternity leave laws making people hate the company.
What did Nestle do?
Nestlé faced criticism for promoting baby formula over breastfeeding, exploiting water resources, using child labor, and opposing maternity leave laws.
Among Indian household names, Saffola is universal. When Indians began to prefer buying oil from a branded seller rather than a street vendor, this particular brand began to make waves in Indian kitchens. The company’s decision to promote the brand through television commercials sped up its rise to fame. The iconic Saffola commercials have been a part of almost every Indian child’s television viewing experience. The company released an ad campaign centering on the heart to break into the Indian market. The Saffola commercial featured frantic individuals, heart rate monitors, and ambulances flashing their lights and sirens. Branded as “Life Insurance,” the oil was marketed as a safeguard against cardiovascular disease.
Today, many consider Harsh Mariwala to be one of India’s foremost business gurus. Marico is an FMCG firm that Mariwala founded and chairs. Marico is responsible for creating well-known brands like Parachute, Saffola, Revive, and Mediker. Mariwala few years back posted on his Instagram, “For some reason, as we grow older, we start giving failures a negative connotation. How often do children stumble before they stand? How often do they fall before they walk? I can’t even count how many times I’ve failed at different things in my life. In fact, most of the successes have been built through these failures! As an entrepreneur, if something hasn’t worked out, don’t worry. Just keep at it!” Saffola surpassed its two formidable competitors, Hindustan Unilever and ITC, thanks to Mariwala’s tireless efforts and innovative marketing techniques.
In the 1960s, medical research identified safflower oil as a beneficial ingredient for heart health due to its higher concentration of something called polyunsaturated fatty acid. However, at that time, only crude safflower oil was commercially available, and it had an extremely bitter taste. As a result, the Mariwala Family received monthly postcards from heart patients requesting a few liters of this oil. Statistical estimates from public health indicate that India continues to bear approximately 60% of the global burden of heart disease. Heart disease is the leading cause of mortality among Indians and a silent epidemic.
This is when Saffola, a product of the Bombay Oil Company, was first introduced to the public in 1965 by the Mariwala family. Developing a marketing plan to get the product into the hands of consumers became the next pressing issue. The Saffola team proceeded methodically to launch heart health campaigns in collaboration with prestigious medical institutions such as the Escorts Health Institute and Bombay Hospital, among others. They also organized multiple conferences within the cardiology community to increase product awareness. From the consumer’s point of view, Saffola organized free cholesterol screenings and an awareness campaign to let people know that the brand stands for heart health. By the 1990s, these initiatives had grown to the point where they were reaching 85 lakh people across 9 cities. The business went so far as to launch a “dial a dietician” program, wherein customers could ask nutritionists for guidance on their diets and ways of living from anywhere in the nation. By going above and above to improve patients’ lives without directly marketing their product, Saffola was able to corner the market on patients’ needs without ever having to lift a finger.
Saffola Product Range
Tasting Failure
Saffola had hit the mark for Mariwala, and he was now enjoying a wave of success. He realized that appealing to people’s sense of taste and wellness was the best approach to getting into their homes. With this in mind, the company re-entered the fast-moving consumer goods (FMCG) sector with a rebranded line of backed snacks. The main objective was to attract customers in this area since the majority of options were unhealthy and fried.
We have Saffola, which is good for the heart, Mariwala said in a media encounter four years ago. Because of this, we considered introducing a baked snack under the Saffola name.
Prototypes depend on good consumer feedback as they are not typically supported by advertising efforts. The new product failed miserably in the marketplace, even though the brand had a reputation among “health-food” consumers. After failing to meet consumers’ expectations, the product was subsequently pulled from sale.
Dusting Off Failure With Success
Following the snack product’s failure, the Marico team got down to the business of figuring out what went wrong and how to fix it. Following much deliberation, the group settled on introducing a new product to the market, but this time around, they would put more effort into studying and testing. This is the story of how Saffola Oats came to be.
Saffola Masala Oats | Mazedaar Khaao Jee Bhar Ke
As a novel product, saffola oats were delicious for consumers. After extensive research into regional preferences, Marico developed a variety of masala oats. In this product category, Marico is now at the top. Marico has introduced a plethora of products—honey, peanut butter, soy chunks, instant noodles, etc.—with the same zeal over the years. Even though it failed miserably in its snack food inception, the Saffola Oats brand went on to become an enormous hit.
Both are multinational consumer goods companies. Both operate in the FMCG (Fast Moving Consumer Goods) industry. Both companies have a strong legacy and a long history and enjoy a great reputation in the market. Both their product repertoire includes household and personal care items, food and beverage products, and beauty and personal care products. Both are publicly traded companies. One is American, while the other is British. These companies are Procter & Gamble Company and Unilever.
A comparison between these two giants is inevitable. However, it is imperative to understand the origins and the growth trajectory of both these companies.
Candlemaker William Procter and soapmaker James Gamble founded this company in the year 1837 which is headquartered in Cincinnati, Ohio. Within a couple of decades, Procter and Gamble’s sales reached USD 1 million. The company gained immensely during the American Civil War as it won contracts to supply the Union Army with soaps and candles. This also helped in increasing awareness for the company and its products as military contracts introduced P&G products to soldiers from all over the country.
By the year 1887, William Arnett Procter, William Procter’s grandson, who was leading the company, began a profit-sharing program for the company’s workforce which proved to be immensely successful and contributed to its growth and expansion. Its product demands grew exponentially resulting in P&G beginning to build factories in other locations within the US. During this time, it also diversified its products and in the year 1911, began producing Crisco, a shortening made of vegetable oils rather than animal fat.
By the year 1930, P&G expanded its footprint internationally by acquiring the England-based firm Thomas Hedley Co. From here on, there was no stopping their growth and expansion. P&G, over the years and through various acquisitions as well as product growth and new product introductions further penetrated international markets. By the year 2014, the company had more than 160 products on its brochure when it announced a restructuring. It dropped around 100 products from its repertoire citing sluggish sales and concentrated on the remaining 65 products which were bringing in almost 95% of the company’s profits. By the year 2018, it simplified its corporate structure with six business units.
P&G – Products
Unilever
It was in London; England and the year was 1929 when Unilever was formed as a result of a merger of Dutch Margarine Unie and British soap maker Lever Brothers. Over the next decade, the business grew and expanded into Africa and Latin America. Due to the Nazi occupation of Europe during the second world war, Unilever, unable to reinvest in Europe, expanded its presence in the United Kingdom and the US. Over the next few years, Unilever expanded its product portfolio through its efforts and various mergers and acquisitions. By the mid-1960s, Unilever products laundry soaps, and edible fats contributed to almost half of the company’s profits. However, markets for yellow fats were stagnating and the company was facing increasing competition from Procter & Gamble. In response, Unilever diversified its product portfolio and acquired British-based Lipton Ltd., from Allied Suppliers in the year 1971. By the end of that decade, Unilever had gained 30% of the Western European ice cream market through various acquisitions. This became the turning point for the company as by the year 1982, it repositioned itself as a company more concentrated on fast-moving consumer goods.
Unilever – Products
Over the years, Unilever strengthened its product portfolio, merged with and acquired many other brands and companies, and expanded its global footprint by establishing business operations across many countries. Currently, Unilever’s global brand portfolio boasts 400 different brands.
Despite a difference of more than 90 years between these two FMCG titans, traditionally both have battled for supremacy in several household goods and personal care products ranging from laundry detergents to shampoo. However, the key difference between these two companies is their geographical focus. P&G, originally from the US, has a highly concentrated presence in the developed markets, more specifically in North America and Europe. Unilever, on the other hand, has a diverse global presence with high-volume sales originating from Asia, Africa, and Latin America. Even so, there are a few parameters on which these companies can be compared.
Financials
Procter & Gamble, on average, houses stronger brands and has a more efficient business operation. These have resulted in the company having a better operating margin. The company also delivers higher returns on capital employed. Unilever, on the other hand, even though it has a global footprint has witnessed a deterioration in its return on capital employed.
Growth & Expansion
By December 2022, P&G had posted an annual revenue of USD 80 billion and Unilever had posted an annual revenue of USD 62 billion. However, the last decade has not seen any significant revenue growth in both companies. The main reason being cited for this is that both companies have been selling some of their low-performing brands, streamlining and restructuring business operations.
P&G By the Numbers – 2022
Sustainability & Social Responsibility
Both companies are vastly different in addressing this issue. While Unilever enjoys a strong reputation for its efforts in reducing environmental impact while simultaneously striving to improve the lives of the communities in which it operates, P&G is less focused on sustainability in comparison.
Unilever Sustainable Living Plan
Valuation
The price-to-earnings ratio shows P&G with a higher value than Unilever. However, Unilever’s valuation is a lot less demanding. This also results in Unilever shares yielding a higher dividend. However, P&G has consistently delivered increasing dividends for the last 66 years. So, investors looking for dividend growth might prefer P&G shares while investors looking for a higher starting yield might prefer Unilever.
Competition
As big as both these companies are in terms of business operations and as famous as their various brands are, significant competition exists for them from supermarket private label brands and startups aiming to conquer specific niches. Also, both these giants are also facing increasing threats with innovative startups targeting a specific operating niche like products in the natural and eco-friendly space.
Unilever vs. P&G: How CPG Giants Fight Competition from Innovative Startups
Conclusion
It is extremely difficult to choose one company over the other, especially with these two FMCG giants. In recent times, P&G has already successfully implemented its restructuring while Unilever is yet in its early phases of business transformation. Both of them are facing a similar scenario when it comes to competition so it will be interesting to see how they both fare in the future.
FAQs
When was Procter & Gamble founded?
Candlemaker William Procter and soapmaker James Gamble founded P&G in the year 1837.
When was Unilever formed?
Unilever was formed as a result of a merger of Dutch Margarine Unie and British soap maker Lever Brothers in 1929.
Company Profile is an initiative by StartupTalky to publish verified information on different startups and organizations. The content in this post has been approved by ITC.
What comes to your mind when you read conglomerate company? To put it in simple sentences, a conglomerate is a grouping of various companies operating in distinct industries under one corporate umbrella; typically consists of a parent firm and numerous subsidiaries. They often have a big global presence.
The concept of conglomerate companies is not something from a recent era but began some 200 years ago. You will be surprised to know that it was during the First World War when it actually started.
Weimar, a city in Germany, experienced a temporary economic crisis as a result of the First World War, which allowed business owners to purchase companies for dirt cheap. Hugo Stinnes, founded Stinnes Enterprises, the most significant private economic conglomerate in 1920s Europe, which included businesses in a variety of industries, including manufacturing, mining, shipbuilding, hotels, and newspapers.
India is no less when it comes to conglomerate companies it has formed. One such company is known to be one of the biggest conglomerate companies in India. ITC Limited, the name nobody is unfamiliar with, was founded in 1910 as a British-owned company registered in Kolkata.
Today, ITC is India’s leading FMCG marketer. Not only FMCG, but ITC has diverse businesses in sectors such as Hotels, Paperboards and Packaging, Agri Business, and Information Technology.
In this article, we have curated all the important information regarding ITC’s startup growth, it’s business and revenue model, challenges, key products and services, shareholders, and future plans.
The Imperial Tobacco Company of India Limited, under W.D. & H.O. Wills, which is a British-based Tobacco manufacturer was founded in 1910. The company later changed its name to India Tobacco Company Limited in 1970, and then to I.T.C. Limited in 1974. The business is now known as ITC Limited, with “ITC” no longer serving as an abbreviation.
ITC is present in a variety of industries, including FMCG, hotels, packaging, paperboards & specialty papers, and agribusiness.
ITC is the only corporation in the world of its size and diversity to be carbon, water, and solid waste recycling positive, demonstrating its desire to be an example of sustainability practices.
Furthermore, over 5.5 million individuals, the bulk of whom are among the poorest in rural India, have sustainable means of subsistence thanks to ITC’s enterprises and value chains.
As of today, ITC has a market capitalization of US$35 billion and had an annual turnover of US$10.74 billion during 2019-20. It has more than 60 facilities across India and 36,500 employees.
ITC – Industry
According to a survey, the industrial sector, which consists of businesses in manufacturing, power, gas, and water, established more than 47,800 new businesses in FY22.
The conglomerate industry in India is picking up fast and changing the economics of the country.
ITC – Key People
ITC Limited is headed by Sanjiv Puri, who is the Chairman and MD of the company.
Sanjiv Puri
Sanjiv Puri is the Chairman and Managing Director of ITC Limited. With effect from December 6, 2015, he was appointed as a Wholetime Director on the ITC Board. He later assumed the positions of Chief Executive Officer in February 2017 and Managing Director again in May 2018. He was chosen to serve as Chairman, and that date is May 13, 2019.
Sanjiv Puri holds degrees from the Indian Institute of Technology in Kanpur and the Wharton School of Business in the United States. Most recently, the XIM University in Bhubaneshwar awarded him an honorary doctorate.
Sanjiv Puri has held the position of Chairman of the Expert Group established by the Fifteenth Finance Commission of the Government of India to promote agri-exports, and he has also participated in the NITI Aayog’s Farm to a Table discussion group on technology.
He received the Indian Institute of Technology, Kanpur’s “Distinguished Alumnus Award of the Year 2018” for his achievements. Another honour bestowed upon him was the “IMPACT Person of the Year, 2020” Award from exchange4media, a prestigious online news source.
ITC – Mission and Vision
ITC Limited vision is to maintain its ranking as one of India’s most valuable companies by performing at an international level and generating growth for the Indian economy and the company’s stakeholders.
ITC’s mission is, “To enhance the wealth generating capability of the enterprise in a globalising environment, delivering superior and sustainable stakeholder value”
ITC – Name, Logo, and Tagline
ITC Logo
ITC’s name has been changed a few times. The company was originally known as ‘Imperial Tobacco Company of India Limited’ when it was under British ownership. Later, the company ventured into partnerships and was renamed the Indian Tobacco Development Company Limited.
After Independence, the company was changed to I.T.C Limited. In present times, the company is popularly known as ITC, not as a short-form of anything.
ITC goes by the tagline, “Enduring Values”
ITC – Startup Story
ITC traces back to 1910 as a British-owned company located in Kolkata, West Bengal, India. The company used to call Imperial Tobacco Company of India Limited. Soon after a year, to source leaf tobacco, the company entered into partnerships with farmers from the southern region of India.
The “Indian Leaf Tobacco Development Company Limited” was established under the company’s aegis in the Guntur district of Andhra Pradesh in 1912. The company had its first cigarette factory in Bangalore in 1913.
The company had its headquarters in the ‘Virginia House’ at Calcutta. After years of development and strategies, ITC decided to expand its footprint and purchased the Kidderpore factory of Carreras Tobacco Company in 1935. To drastically lower import prices, ITC assisted in the establishment of an indigenous industry to produce cigarette tissue paper in 1946.
Within three years, a printing and packaging facility was established by ITC in Madras. The company also purchased the manufacturing operations of Tobacco Manufacturers (India) Limited as well as Printers (India) Limited’s related lithographic printing operations in 1953.
Right after the purchase of Printers (India) Limited, ITC was converted into a Public Limited Company. With 6% of the company’s Indian shareholders, the first step toward Indianization was made in the same year. During this period, ITC also entered the consumer research market for the first time in India.
In order to achieve self-sufficiency in the production of cigarettes, technology was more heavily focused on throughout the 1960s when establishing cigarette machines and filter-rod manufacturing facilities. In a few years, the Indian shareholding grew further to 40%.
ITC started to enter the hospitality industry in 1975 and bought and renamed the ITC Welcomgroup Hotel Chola in Madras. The company selected the hospitality industry due to its potential to produce significant amounts of foreign exchange, develop tourism infrastructure, and produce a significant amount of direct and indirect employment.
As the shareholders kept growing, the company started to create more hotels in the following years. It was in 1979, the company entered the paperboards business by promoting ITC Bhadrachalam Paperboards Limited.
As the company kept growing, two more ventures were established by ITC – the ITC Classic Finance Limited and ITC Agro Tech Limited under its umbrella during the 1986s.
The Wills Sport line of casual clothing was introduced by ITC in the 2000s, and the company also entered the stationery and gifting industries by producing the Expressions line of greeting cards and Classmate notebooks.
ITC – Business Model
ITC business is a multi-industry company, and as a multinational company, it has different products and different target markets accordingly. The business model of ITC is to create products that benefit its target audience by giving them a vast range of products.
ITC sets its benchmark in various other sectors like FMCG, Agri-Business, Hotels, Paperboards and Specialty Boards, Packaging, and Information Technology.
Here let’s take the look at the key products that covers in the business model of ITC
FMCG
ITC houses around 25 brands under its FMCG market, thus making them one of India’s leading marketers in Fast Moving Consumer Goods Business(FMCG). It could be seen that the company’s strategic goal is to ensure long-term success by combining and using the varied set of competencies present across all of its businesses to take advantage of new opportunities in the FMCG industry.
Some of the brands that help us with our bare necessities in today’s age, are majorly by ITC, these are:
ITC Foods Brands – To name a few:
Sunfeast
Aashirvaad
Bingo
Yippee
B natural
Sunfeast Milkshake
Mint-o
Candyman
Sunbean
ITC Personal Care Brands;
Salvon
Vivel
Engage
Fiama
Nim Wash
EDW ESSENZA
Charmis
ITC Stationery Brands;
Classmates
Paperkraft
ITC Incense Brands;
Mangaldeep
ITC Safety Matches Brands;
Homelites
Aim
ITC Cigarettes Brands;
Insignia
India Kings
Classic
Gold Flake
American Club
Wills Navy Cut
Players
Scissors
Capstan
Berkeley
Bristol
Flake
Silk Cut
Duke & Royal.
Hotels
ITC business is also expanded in the hotel sector. The company launched its first hotel in 1975 by building on the assets of its excellent sustainability standards and pioneered the idea of “Responsible Luxury” in the hospitality industry. Presently, the company owns around 100+ hotels in various locations.
Some of the luxury and distinguished hotel brands by ITC are:
ITC Hotels
Mementos by ITC Hotels
Welcome Hotel
Storii by ITC Hotels
Fortune Hotels
WelcomHeritage Hotels
Paperboards and Packaging materials
The company is proud in meeting the needs of a broad range of industries, including those for FMCG cartons, electrical insulation papers, bio-based barrier coated boards, decorative laminate bases, writing and printing papers, and much more. ITC’s paperboard products range in Virgin Boards, Recyclable Barriers Boards, Recycled Boards, Barrier Boards, and Graphic Boards.
ITC has also been a prominent contributor to paperboard packaging in South Asia. Some of the packaging services provided by ITC are cartons packaging, flexible packaging, tobacco packaging, innovation, and new product development.
Agribusiness
Due to its involvement in reforming and reinventing the rural agricultural area, ITC, which also operates in the agriculture sector, has solidified its place as a prominent corporate in the agricultural industry in India. ITC also started a farmer empowerment plan known as the e-Choupal to help farmers build a strong community.
Today, e-Choupal is the world’s largest rural digital infrastructure. Some of the agri-products, that the company focuses on export and domestic trading are; Feed ingredients, Coffee, Marine Products, Food Grains, and Processed Fruits.
IT services
ITC Info Tech by ITC provides services in business and technology consulting. It offers its IT solutions to sectors like Banking & Financial, Services, Consumer Goods, Manufacturing, Healthcare Travel, and Hospitality.
Apparel business
ITC has diversified its business in apparel and fashion as well. Fashion brands that are owned by ITC are John Players and Wills Lifestyle. However, the company had been shutting the stores of Wills Lifestyle due to losses.
Marketing and Media Centres
To build its brand and advertise its companies, goods, and services, ITC engages in a variety of marketing and promotional initiatives. The brand uses a variety of promotional techniques, including print, digital, and electronic media, in its advertising campaigns. It has launched several advertising campaigns that are broadcasted across various media, including radio, television, billboards, etc.
ITC has roped in many celebrities to endorse their brands like Shah Rukh Khan for its food brand ‘Sunfeast’, Alia Bhatt for its ‘Sunfeast Dark Fantasy’ biscuits, famous cricket player like Yuvraj Singh, and Bollywood actress, Soha Ali Khan for ‘Classmate’, Kiara Advani for ‘Charmis’, and Tara Sutaria for ‘Savlon’.
R&D Activities
ITC has its own research and development centres. The R&D centre come under the brand name ITC Life Sciences and Technology Centre (LSTC). The centre is situated in Bengaluru, where it is involved in creating many innovative products and technology solutions to offer to its Indian customers.
CSR Activities
ITC has its own CSR policy where it aims to contribute as much as possible to building economic, social, and environmental capital towards the betterment of society in general. Women empowerment, Afforestation programme, Sustainable agriculture, Livestock Development, Watershed Development programme, Primary Education, Skilling & Vocational Training, Health & Sanitation, and Solid Waste Management are some of the CSR initiatives by ITC Limited.
ITC – Revenue Model
ITC mostly generates its revenue from the cigarette industry. Despite, the third wave of Covid, the cigarette sector’s revenue is up 10.2%.
For FY2021-22, the company’s overall Gross Revenue at Rs. 59101.09 crores increased by 22.7%, while EBITDA increased by 22.0% to Rs. 18933.66 crores.Profit Before Tax at Rs. 19829.53 crores grew by 15.5% over the previous year and Profit After Tax stood at Rs. 15057.83 crores (previous year Rs. 13031.68 crores). Total Comprehensive Income for the year stood at Rs. 15631.68 crores (previous year Rs. 13277.93 crores). Earnings Per Share for the year stood at Rs. 12.22 (the previous year Rs. 10.59).
ITC – Investments
ITC has made four investments till now. Their most recent investment was on 20 April 2022, when Mylo raised ₹1.3B. Other companies in which ITC has invested are Mother Sparsh Baby Care and Azgo.
ITC has invested around $1 million at Azgo in 2019 in corporate round funding.
ITC – Mergers and Acquisitions
ITC has bought two businesses. Sunrise Foods was their most recent acquisition as of May 25, 2020. They paid $21.5 billion to buy Sunrise Foods.
Century Textiles – Nainital paper unit is another company they acquired on 16 June 2011 at an undisclosed amount.
ITC – Shareholders
The equity shares of ITC are traded on the Calcutta Stock Exchange, the National Stock Exchange of India, and the Bombay Stock Exchange (CSE). Global Depository Receipts (GDRs) issued by the corporation are traded on the Luxembourg Stock Exchange. ITC is a component of the BSE SENSEX and NIFTY 50 of the NSE, two of the most important stock market indices in India.
ITC – Challenges Faced
In 2021, ITC was facing issues in operating outlets because of lockdowns imposed during the second wave of Covid-19. The company thinks that because of the second wave lockdown, it had severe economic and social disruptions. The limited time hours given during the lockdowns posed a big challenge for the company as there was no material supply and limited customers at its various stores.
ITC Hotels suffered a lot during the second wave as there were restrictions imposed by the Government to curb the spread of the pandemic.
ITC – Online and Social Media Presence
Since ITC plays a key role in marketing and promotional activities, it knows how to keep its audience engaged and keep them updated through its various brand awareness strategies and methods, it surely has a very strong social media presence. The LinkedIn page of ITC has 2,438,418 followers, Instagram has 12.3K followers, and the Twitter page has 40.2K followers.
ITC – Awards and Achievements
As one of the leading Multinational Companies in India, ITC has received many awards and achievements. Take a look at the below list of some major awards won by ITC:
Pulp & Paper International (PPI) Awards by Fastmarkets RISI
First Prize At National Water Awards, 2022
EFI CII National Award for Excellence in Employee Relations, 2021
ICSI CSR Excellence Award, 2021
ITC’s Savlon wins big at Cannes 2017
Excellence in Corporate Governance and Integration’ – Porter Prize, 2017
World Business Development Award 2012, RIO
ITC – Advertisements and Social Media Campaigns
ITC knows its game when it comes to marketing itself. In 2020, ITC launched a social media campaign to voice out the different products it makes and reflects the essence of the ‘Made In India’ initiative.
With the #ProudlyIndian Campaign, ITC wanted to grasp the Indian audience for being an important contributor to the nation with its myriad options of products, which are manufactured on Indian soil with cutting-edge technology centres and Indian farmers.
In 2021, ITC Vivel launched a campaign on Women’s Equality day to salute all the homemaker women. With ‘Ab Samjhauta Nahin’ philosophy, the campaign highlights the gap between working professionals’ and homemakers’ expectations.
With its #RespectWorkForHome campaign, the brand celebrates the dedicated, persistent, and selfless work of housewives. The brand demonstrates the long-standing problem of discrimination based not only on a person’s gender but also on the sort of labour performed.
ITC – Competitors
ITC competes with the following companies:
In the FMCG sector
Hindustan Unilever Limited (HUL)
P&G
Coca-Cola
Dabur
Danone
L’Oreal
Colgate
Nestle
Godrej Consumer Products
In Cigarettes Sector
Raghunath
Godfrey Phillips India
Vazir Sultan Tobacco
Golden Tobacco
Philip Morris International
In Hotels Sector,
Taj Group of Hotels
Oberoi
Leela Hotels
FAQs
Is ITC private or government?
ITC is a private sector company that has its presence in Cigarettes, Hotels, Paperboards & Specialty Papers Packaging, Agri-Business, Packaged Foods, Branded Apparel, Personal Care, Stationery, Safety Matches and much more.
Who is the biggest shareholder of ITC?
Tobacco Manufacturers India Ltd is the biggest shareholder of ITC.
Is ITC an Indian company?
Yes ITC is an Indian conglomerate headquartered in Kolkata.
Patanjali = Baba Ramdev + Ayurveda + Organic + Healthy + Desi + People’s Trust + Quality Product. The combination of all makes Patanjali a dynamic business model in a country like India. Speaking of this, the way Patanjali manifested itself in the Indian market reflects its brilliant marketing strategy and brand positioning. Though Patanjali has a wide range of products, it gets sold easily because of the brainchild behind this, i.e. Baba Ramdev, primarily known for his popularizing Yoga and Ayurveda in India.
Patanjali – Company Highlights
Company Name
Patanjali Ayurved
Headquarters
Haridwar, Uttarakhand, India
Founders
Baba Ramdev & Acharya Balkrishna
Sector
Consumer goods & Healthcare
Founded
2006
Parent Company
Patanjali Ayurved Limited
Website
patanjaliayurved.org
Patanjali Ayurved Limited was established in 2006 with the thought of rural and urban development. The company is not merely an organization but a thought of creating a healthy society through Yoga and Ayurveda.
Patanjali Ayurved, (commonly known as Patanjali), is an Indian fast-moving consumer goods (FMCG) company based in Haridwar, India. It was founded by Baba Ramdev and Acharya Balkrishna in 2006. Its registered office is located in Delhi, with manufacturing units and headquarters in the industrial area of Haridwar. The company manufactures cosmetics, ayurvedic medicine, and food products.
Patanjali fabricates mineral and natural items. It also has manufacturing units in Nepal under the trademark “Nepal Gramudhyog” and imports a greater part of herbs in India from the Himalayas of Nepal.
In 1995, Baba Ramdev was a little-known yoga teacher in Haridwar when his close associate, Acharya Balkrishna, and he set up Divya Pharmacy – under the aegis of Ramdev’s guru, Swami Shankar Dev’s, ashram – to make Ayurvedic and herbal medicines. The medicines proved so popular that Ramdev and Balkrishna sought to diversify. But that proved difficult since Divya Pharmacy was registered under a trust.
Meanwhile, Baba Ramdev started gaining popularity which helped him to receive funds from the likes of NRIs Sarwan and Sunita Poddar, as well as locals such as Govind Agarwal – which in turn helped to get bank loans. This led to the incorporation of Patanjali Ayurved as a private company in 2006, with the purpose to bring the Ayurved in the form of the various product range, particularly in healthcare, hair care, dental care, toiletries, food and more – at breathtaking speed.
The initial days were quite difficult for them. They hardly had money to pay for the registration of Divya Pharmacy. For the first three years, till 1998, they distributed the medicines free. From buying the raw materials to grinding and mixing, everything is done by themselves as they cannot employ staff because of the lack of money.
It is noteworthy for a brand to be not the same as its rivals, and Patanjali quickly developed its own identity. Patanjali’s mantra of low costs goods and ‘swadeshi’ are broadly viewed as the principal purposes for its prosperity.
How did Baba Ramdev do it? The man has astutely related Patanjali with Ayurveda, which pulled in a huge group of spectators. He has brought Ayurveda into the market by matching it with the need of the consumers, particularly, by developing a wide range of products, thus enhancing the brand recall value.
He has picked up the trust of clients not just by demonstrating the products to them but also by using them himself. However, all of the organization’s procedures to verify the quality and amount of the items are strictly followed.
Patanjali Ayurved bids broadly by anticipating a picture of regular and unadulterated items. Baba Ramdev, its image diplomat, is additionally an open figure and well-being advertiser whose mass intrigue has ascended in recent years.
Patanjali – Founders
Baba Ramdev | Founder | Patanjali
In 1995, Balkrishna and Baba Ramdev founded Divya Yoga Mandir Trust in Haridwar, and in 2006, they founded Patanjali Ayurved a fast-moving consumer goods (FMCG) company involved in the manufacturing and trading of FMCG, herbal, cosmetics and ayurvedic products.
Swami Ramdev (born Ram Kisan Yadav in 1965), also known as Baba Ramdev, is an Indian yoga teacher and businessman, primarily known for his popularising Yoga and Ayurveda in India.
While Ramdev does not hold a stake in Patanjali Ayurved, he is the face of the firm and endorses its products to his followers across his yoga camps and television programs. Balkrishna owns 94% of the company and serves as its managing director. He is a close aide of Baba Ramdev.
Archarya Balkrishna | Founder | Patanjali
Balkrishna claims 98.6% of Patanjali Ayurved, and as of March 2018, it has total assets of ₹43,932 crores ($6.1 billion). Acharya Balkrishna is India’s Third youngest Billionaire with US$2.3 billion wealth as per the Forbes list of India’s 100 Richest People (May 2021).
Patanjali – Name, Logo & Tagline
Patanjali Ayurved Logo
The word “Patanjali” is a compound name from”patta” (meaning falling, flying) and “añj” (honour, celebrate, beautiful) or “añjali” (reverence, joining palms of the hand). The meaning of Patanjali is ‘Famous Yoga Philosopher‘ or ‘The authorof Yoga sutras‘.
The tagline of Patanjali is “Prakriti ka Aashirwad” which signifies that it uses Ayurveda (something that is perceived as a healthcare approach) and organic and natural ingredients to create a wide range of products, thus beautifully depicting an illusion in the mind of the customer that the product they’re using is really a nature’s blessing.
Patanjali – Vision and Mission
VISION
Keeping Nationalism, Ayurved and yoga as their pillars, Patanjali is committed to creating a healthier society and country by bringing the blessings of nature into the lives of people in the form of Ayurveda, a healthcare approach that is religious and spiritual. Having said that, Patanjali is all set to create a history in the Indian FMCG sector.
MISSION
Ayurveda has its foundation laid in ancient times as a healthcare approach but people have been neglecting it. So, there when Patanjali came into the picture to make India an ideal place for the growth and development of Ayurveda and a prototype for the rest of the world by upbringing awareness among people.
Patanjali – How Did It Achieve Success?
How Patanjali Achieved Success
Patanjali is the biggest Swadeshi FMCG brand. There is a great deal of information one can gain from Patanjali’s plan of action.
Baba Ramdev made an unpredictable plan of action for selling ayurvedic items. He never introduced his products as ayurvedic medications in the market, he propelled them as FMCG products.
Patanjali Ayurved is not entirely different from other FMCG organizations but it has a strategy similar to them as the products are offered to clients at an edge to procure a benefit.
Here are the factors which helped Patanjali to achieve success.
Pricing of Products
Moderate estimating of Patanjali items is one reason for its solid infiltration into the Indian market. As Baba Ramdev stated, the motivation behind Patanjali is Upkar and not Vyapar. Patanjali aims to give great quality items at low costs. How is it able to sell items at lower prices when compared to its rivals?
The organization sources items legitimately from ranchers and removes middlemen from the picture. This allows Patanjali to reduce crude material acquirement costs.
Patanjali appreciates a duty excluded status which is smack on the essence of other FMCG organizations.
Patanjali acquired terrains at a much-limited rate.
Patanjali doesn’t contract MBAs for selling their item, it employs a lesser number of experts. The organization has faith in assembling the items which the customers may purchase without the need for additional push to sell the item. There is nobody in that organization who is paid crores in salary.
The edge of merchants and retailers is less in Patanjali items when contrasted with other FMCG items.
Swadeshi Factor
The advancement system of Patanjali is entrancing with the “Make In India” campaign to gain more attention from the customers. Baba Ramdev’s main motive is to replace MNCs. They promote their products by saying that it doesn’t contain unsafe synthetic compounds and only natural pith. “Also by purchasing our items, you are guaranteeing the cash you spend remains in India.” The Swadeshi factor has proved to be a profitable strategy.
Baba Ramdev Buzzing Personality
Patanjali doesn’t rely on entertainers or sportsmen to promote its catalogue. Baba Ramdev is a steadying force. He has amassed an enormous group of devotees over 20 years through diligent work around yoga and Ayurveda. This saves the Indian FMCG giant a lot of investment when it comes to promotion and publicity.
A large number of individuals, from India as well as abroad, follow this other-worldly master. Baba accepted this as an open door and propelled a different scope of items under the brand name ‘Patanjali’.
Branded House Strategy
In this technique, different items are propelled and advanced under one brand. For instance – Apple has different items like Mac, iPad, iPhone, and more. Even though each one of them is unique and performs various capacities, collectively they are seen as Apple items.
Similarly, Patanjali advances all of its items under one brand. This additionally encourages lower costs in showcasing and publicizing as it doesn’t need to advance every item. Patanjali pushes for the image name “Patanjali.”
Distribution & Supply Strategy
Distribution And Supply Chain Of Patanjali
Patanjali Ayurved Ltd. built its one-of-a-kind retail organization. It began selling products through its own channels of super distributors, distributors, Chikitsalayas (franchise dispensaries), and Arogya Kendras.
Chikitsalaya – Pharmacies where specialists analyzed patients for nothing and suggested purchasing drugs from stores nearby. This is a unique system no other organization thought of.
Patanjali Arogya Kendras, a well-being and health focus centre.
Non-drug outlets are called Swadeshi Kendras. Additionally, the organization has numerous restrictive outlets across India. Patanjali items can also be purchased online.
Promotion Strategy
Marketing Mix Model Of Patanjali Ayurved
Patanjali uses a marketing mix model strategy to promote its brand or product in the market. The 4Ps make up a typical marketing mix – Price, Product, Promotion and Place.
Price: Patanjali uses a value-based pricing strategy primarily based on a consumer’s perceived value of a product or service that aligns with its competitors.
Product: It has a wide range of all existing and herbal products for different diseases.
Segmentation: Patanjali divides the market on the basis of age, lifestyle, personality, class, gender, etc. depending upon the people looking for healthy FMCG products.
Targeting: Patanjali offers products for all aged people but it targets mainly middle and upper-middle-class families who prefer ayurvedic products.
Positioning: Patanjali positioned itself as a healthier and safer product in the FMCG category that treats diseases with zero side effects.
Authentic Selling Strategy
Strategies Of Patanjali Ayurved
Patanjali uses an authentic selling strategy/authentic marketing to communicate openly, honestly and genuinely with customers. Baba Ramdev promotes the product in his yog shivir, youtube channels and other media platforms.
Patanjali – SWOT Analysis
The SWOT analysis of Pantajali Ayurved is mentioned below:
SWOT Analysis | Patanjali Ayurved Limited
Strengths
Offers 100% natural products with few side effects.
The brand image of the trust.
Extensive marketing has helped Patanjali to consider socially responsible for the health of the society, thus pulling people into accepting its products as a healthier and safer option.
Baba Ramdev’s buzzing personality helped in the quick sale of the products.
Excellent word-of-mouth marketing has helped the brand grow.
Established a successful distribution network in urban areas.
Weaknesses
Low export levels.
Diversification to other products raised quality issues.
No distribution network in rural areas.
Less expenditure on marketing and promotional activities.
Opportunities
Patanjali can tap the overseas and rural market as people are becoming more health-conscious.
Can enter more segments in personal hygiene, FMCG, etc.
Can diversify in different sectors like clothing, education, restaurants, etc.
Can bring change in the trend of becoming more health-conscious and using more organic products.
Threats
Political Interferences.
Big players can overcome new competition from Patanjali with their existing model.
Patanjali has a wide range of quality products – Natural Food Products, Natural Health Care, Natural Personal Care, Ayurvedic Medicines, Herbal Home Care & Patanjali Publication with 50000000+ consumer reach, 300000+ stores reach, 1000+ products and 5000+ Patanjali stores.
Patanjali Food and Herbal Park at Haridwar is the primary creation office of Patanjali Ayurved. The organization has a creation limit of ₹35,000 crores ($5.1 billion) and is growing to a limit of ₹60,000 crores through its new generation units at a few spots, including Noida, Nagpur, and Indore.
The organization intends to set up further units in India and Nepal. In 2016, the Patanjali Food and Herbal Park were given a full-time security front of 35 outfitted Central Industrial Security Force (CISF) commandos. The recreation centre will be the eighth private establishment in India to be watched by CISF paramilitary forces. Baba Ramdev is himself a “Z” class protectee of focal paramilitary forces.
Patanjali Ayurved produces items in the class of individual consideration and food. The organization makes more than 2,500 items, including 45 sorts of corrective items and 30 kinds of sustenance items.
As indicated by Patanjali, all the items fabricated by Patanjali are produced using Ayurveda and characteristic components. Patanjali has additionally propelled magnificence and infant products.
Patanjali Ayurvedic producing division has more than 300 drugs for treating a wide scope of sicknesses and body conditions, from normal cold to ceaseless paralysis. Patanjali propelled Atta noodles on 15 November 2015. The organization is accounted for fabricating conventional garments like Kurta, Pyjama and jeans.
On 5th November 2016, Patanjali declared that it will set up another assembling plant Patanjali Herbal and Mega Food Park in Balipara (Assam) by contributing ₹1,200 crores ($170 million). It would have an assembling limit of 10 lakh products every year. The new plant will be the biggest office of Patanjali in India and is operational at the moment. Patanjali as of now has around 50 assembling units in India.
Patanjali – Why Did It Saw Downfall?
Patanjali Ayurved, being one of the leading FMCG brands in India, had seen a downfall in its sales in 2017. Patanjali has always been the consumer’s favourite due to its affordability, use of natural & organic ingredients and Swadeshi factor.
Following are the reasons that have slowed down the growth of Patanjali in 2018:-
Lack of Innovation: Without innovation, there is not anything new and without anything new, there is no progress especially when everything around you is innovating. Since the introduction of the goods and services tax (GST) hit its operations in 2017, Patanjali has not managed to recover from the low growth cycle. As a result, its top line declined 10% in FY18. The decline was primarily because of its inability to adapt to the GST regime and develop infrastructure and supply chain.
Lack of Advertising: The decrease in advertising slowed down the growth of Patanjali. Patanjali didn’t focus more on advertising as a result faced a decline in its sales because people were not aware of its natural and organic products.
Ignoring Competition: One of the major reasons why Patanjali faced decline is ignoring its competitors. It’s very important for a company to keep an eye on its competitors. Patanjali has created many rivalries along with success and started rolling out their own variant of natural and organic products.
Poor Management: After gaining huge popularity among consumers, Patanjali diversified itself among various sectors besides FMCG. It became difficult to manage the business verticals and ensure quality checks of the products. As a result, various quality issues emerged that resulted in the decline of its growth.
Despite single-digit top-line growth in FY20, Baba Ramdev was hopeful that Patanjali will regain its lost glory.
Patanjali Ramdev reported a 9% jump in its revenue in FY21 and the net profit grew 14%. The net profit of Patanjali was Rs 485 crore while its revenue was around Rs 1000 Crores. The fast-moving consumer goods (FMCG) major Patanjali Ayurved has reported a 22% growth in its net profit for 2019-20 (FY20). According to the financial data accessed by business intelligence platform Tofler, the group’s flagship entity reported Rs 423 crore net profit for the year, compared to Rs 349 crore it had posted in 2018-19 (FY19).
Patanjali Ayurved, earned over 80% of Patanjali Group’s total revenue, such that its operating revenue grew 6% to Rs 9,023 crore in FY20.
The firm’s top-line growth remained higher than the previous year. In FY19, the Ayurveda major had clocked Rs 8,330 crore turnover – 2.4% higher than Rs 8,136 crore it had posted in 2017-18 (FY18).
Since its sales lost momentum in 2016-17 (FY17), Patanjali is yet to regain the momentum it used to have earlier.
In 2014-15 and 2015-16 (FY16), its revenue had grown 86% and 100%, respectively.
In recent years, its net profit, too, has suffered. Despite double-digit growth, Patanjali’s net profit fell well short of the Rs 1,190 crore it had reported four years ago.
In FY20, its net profit margin stood at 4.67%, compared to 13.3% in FY17 and 16% in FY16.
Some anticipated incomes of ₹5,000 crores ($720 million) for 2015–16. Patanjali proclaimed its yearly turnover for the year 2016-17 to be ₹10,216 crores ($1.5 billion). It was recorded thirteenth in the rundown of India’s most confided in brands (The Brand Trust Report) starting in 2018, and positions first in the FMCG classification.
Patanjali Ayurved Ltd has achieved a tremendous presence around the globe and throughout India in a very small time since its inception in 2006. They have more than 47000 retail counters, 3500 distributors, multiple warehouses in 18 states and proposed factories in 6 states.
Future Of Patanjali Ayurved
Patanjali is the quickest developing organization in the Indian FMCG segment, a $50 Billion industry once commanded by worldwide behemoths – a semblance of Unilever, P&G, Nestle, Colgate – Palmolive, Johnson and Johnson.
From cleanser and bread rolls to ghee and noodles, and now clothing and footwear – no indigenous organization has fabricated such a well-differentiated item portfolio. It has developed more than multiple times in income in the most recent five years and is an unmatched accomplishment in India’s FMCG industry.
The organization focused on incomes of Rs.10,000 crore for FY 2016-17 and Rs. 20,000 – 25,000 crore in FY 2018. It has a broad deals channel of more than 5000 merchants, 15,000 stores, and 100 uber bazaars.
Also, it has tied up with retail chains like Future Group, Reliance Retail, Hyper City, and Star Bazaar. The ongoing declarations of a Rs. 1,600 crore sustenance park in Noida and a Rs. 1,200 crore creation office in Assam highlight the buzz around Patanjali’s arrangements to showcase the organization’s hearty extension plan.
With a growth rate of 130%, the Patanjali Group is planning to make a foray into major global markets. As the group is already present in markets like the US, Canada, the UK, Russia, Dubai and some European countries, it is willing to spread its wings wider and farther.
Conclusion
Patanjali, being a Swadeshi brand has always been in the limelight because of its Ayurvedic products. Each of their steps has been cleverly strategized to bring the best to the brand. Even after facing a few setbacks, the company is standing tall as ever, being the fastest-growing company in the Indian FMCG sector.
Patanjali is expected to go a long way in the future, only if it manages to keep itself ahead of competitors. It has a major advantage over other competitors as Baba Ramdev, a famous Yoga teacher, is the face of the firm.
FAQs
Who is the founder of Patanjali products?
Baba Ramdev & Acharya Balkrishna are the founders of Patanjali products.
When was Patanjali established?
Patanjali was established in 2006.
Are Patanjali products FSSAI approved?
Many Patanjali products lack approval by the Food Safety and Standards Authority of India (FSSAI) the federal food safety regulator of India.
What strategy made Patanjali so successful?
The Swadeshi factor, and claim to be chemical-free products promoted by Baba Ramdev have proved to be a profitable strategy for Patanjali.
Who are the competitors of Patanjali?
The top competitors of Patanjali are:
Dabur India
Procter and Gamble
Marico
ITC
Nestle Ltd.
HUL (Hindustan Unilever Limited)
Baidyanath
Emami
Himalaya Herbal
What is the revenue of Patanjali?
The revenue of Patanjali was recorded $4.2 Billion in 2021.
Company Profile is an initiative by StartupTalky to publish verified information on different startups and organizations. The content in this post has been approved by Ruchi Soya.
In terms of edible oil imports, on the record India is now the world’s largest. Some of the primary causes boosting the edible oil market in India include improving household incomes, the rise of the food processing sector, rising urbanisation rates, and changing dietary patterns.
Consumer health concerns about the increasing prevalence of cardiovascular disease, gastrointestinal problems, diabetes, obesity, and other ailments are driving awareness of healthy edible oil in India. The industry is also being boosted by increasing knowledge of the numerous health benefits of low-cholesterol and organic edible oil. And that’s what drove several regional producers to introduce healthy product versions that are high in omega-3, natural antioxidants, and vitamins.
Ruchi Soya Industries Limited (Ruchi Soya) has grown into a completely integrated company in the edible oil industry, with a reach from fields to plates with safe access to Indian palm oil plantations.
Ruchi Soya Industries Limited is a company that processes oilseeds and refines crude oil for human consumption. It is divided into the following sections: Seed extracts, oils, vanaspati, wind power generation, food products, and other products are available. Various forms of seed extractions are included in the Extraction section. Vanaspati, baking fats, and a table spread, all are available in the Vanaspati sector. Crude oil and refined oil account for the vast majority of revenue in the oils industry. Textured soy protein and soy flour are included in the Food Products category. Wind turbines are used to generate power in the Wind Power Generation industry. Seeds, seedlings, soap, coffee, fresh fruit bunches, toiletry preparations, castor seed, honey and wheat flour are included in the other segments.
The firm’s headquarters are in Indore, with plants and offices across the nation’s significant business hubs. Despite domestic and international rivalry, they have pursued an unwavering path of expansion since their inception.
Patanjali Ayurved acquired Ruchi Soya in 2019. As per a survey issued by Deloitte Touche Tohmatsu, Ruchi Soya is rated 175 among the list of top 250 consumer products companies in the “Global Powers of the Consumer Products Industry 2012.”
Ruchi Soya Industries Ltd.
Ruchi Soya – Industry
The provision of good infrastructure and India’s diversified agro-climatic conditions, which promote the mass production of food components, are the two key factors that have helped the Indian food processing sector grow to become the fifth largest in the world. Currently, India’s food processing sector employs 11.60 per cent of the country’s population and accounts for 32 per cent of the country’s food market. In addition, the industry contributes 2.2 per cent of India’s overall FDI inflows. Even though the industry is dominated by the unorganised sector, the organised sector is predicted to grow throughout the projection period (FY 2020-FY 2024).
The Indian food processing market was worth Rs 25,691.30 billion in FY 2018 and is predicted to reach INR 53,435.52 billion by FY 2024, growing at a CAGR of 12.09 per cent between FY 2020 and FY 2024.
Ruchi Soya – Founder
Dinesh Shahra founded Ruchi Soya in 1986.
Ruchi Soya Industries Ltd.’s Founder and Managing Director, Dinesh Shahra, is renowned in the industry for his strategic business expertise and iconoclastic management.
Ruchi Soya – Startup Story
Ruchi has been one of the country’s leading edible oil manufacturers since it began operations in Indore in 1986. Its other products included soya food, Vanaspati, and lecithin. Ruchi’s product portfolio included these everyday delicacies. Despite their diverse product portfolio, palm oil and soya chunks accounted for a significant portion of their income.
Ruchi Soya quickly grew to become one of the country’s top FMCG firms. It possessed a sizable market share and a well-developed distribution network. Ruchi Soya produced roughly 3 million tonnes of oil per year, with 7 lakh+ retail outlets and 6000+ wholesalers. It also has around 13 well-maintained refinery units. Customers and markets both appreciated it. It was one of the go-to investments for anyone searching for a high-yielding stock. Ruchi Soya’s life was, in a nutshell, hunky-dory until 2011. In fact, it continued to make considerable money until the end of 2015.
However, the tides quickly turned against it, bringing with them a sequence of unfavourable circumstances that redefined its success story. Yes, the corporation saw a precipitous decline from its apex. So, where did things go wrong? The problem began when Indonesia’s government, which imports the bulk of its raw resources, enacted proposed laws. The government raised the tax on crude oil and some other raw resources exports under the new law. The higher expense has to be borne by it. This had an economic burden on the company’s margins as well.
Ruchi Soya has become one of India’s finest FMCG companies, as a prominent maker and distributor of a nutritious variety of edible oils and a pioneer of soya foods. And it’s one of India’s biggest palm planting firms. Ruchi Soya now has 22 production plants, with a combined refining capacity of over 11000 tonnes per day, a seed crushing capacity of 11000 tonnes per day, and a packaging capacity of ten thousand tonnes per day.
The industry’s pan-India inclusion, which includes strategically located manufacturing facilities that strike the proper blend between proximity to raw materials and markets, as well as an extensive distribution network and a large sales force in India, has allowed it to run smoothly, increase product to satisfy ever-increasing domestic consumption, and outsource by-products like soy meal, lecithin, and other condiments to other nations.
Ruchi Soya’s tagline says, “Healthy options every day.”
Company Logo of Ruchi Soya
Ruchi Soya – Vision, and Mission Statement
Ruchi Soya’s vision statement says, “To be India’s leading edible oil & food company by building profitable brands that delight consumers by meeting their everyday health & nutrition needs at the best value.”
Ruchi Soya – Employees
Below are mentioned key people of Ruchi Soya Industries.
Founder & Managing Director – Dinesh Shahra
Vice President – Hemant Bansal
Dy. Manager Supply Chain South – Ak Singh
National Activation Manager – Amitakshya Chowdhury
Asst. Manager Commercial/ Finance – Amol Desai
Junior Manager – Anudit Purohit
Product Manager – Ashish Jaiswal
Sr Manager HRD – Ashwini Kumar
Manager – Electrical – Avinash Agrawal
Asst. Manager Legal – Dilip Taraj
Assistant Manager – Diwedi Dwivedi
Ruchi Soya – Funding, and Investors
Date
Round
Amount
Lead Investors
Mar 24, 2022
Funding Round
₹12.9B
Alchemy Capital Management, Oman’s Pension Fund, Volrado Ventures
Ruchi Soya – Acquisitions
Acquiree Name
About Acquiree
Date
Amount
Patanjali Biscuit Business
Patanjali Biscuit Business is a producer of biscuits and bakery products.
May 11, 2021
₹600M
Gemini Edibles and Fats India Pvt. Ltd
Gemini Edibles & Fats India Private Limited is in the business of manufacturing and marketing edible oils and fats.
Jan 6, 2010
₹45M
As of March 24th 2022, as follow-on public offering opens for subscription, Ruchi Soya falls 5%. Before the follow-on public offering, the business, which is run by Baba Ramdev’s Patanjali Ayurved, received Rs 1,290 crore from anchor investors. Ruchi Soya’s stock hit a low of Rs 851 on the BSE, down from Rs 897.45 at the previous closing. The Rs 4,300 crore FPO is available at a 40% discount to the company’s existing market price at the top end of the price band of Rs 650 per share.
The firm was purchased by Patanjali Ayurved after it went bankrupt. It is a fully integrated operator in the edible oil industry, with operations spanning the whole production process. It sells Nutrela, Mahakosh, Sunrich, Ruchi Gold, and Ruchi No. 1 goods.
The firm has recently expanded into other industries such as data and honey. Ruchi Soya’s entrance into additional FMHG and FMCG items such as biscuits, oleochemicals, rusks, honey, wheat flour, and nutraceuticals signals well for the company’s mid-to-long-term commercial growth.
Patanjali, which controls 98.90% of the firm, was required to reduce its shareholding to 75% or less within three years after purchase. It has been two years, and it is thus necessary to sell its shares.
The Indonesian govt. has decreased the taxes on refined oil exports. As a result, a rise in the price of its product might lose the company money. Ruchi Soya was faced with a significant dilemma and a limited number of solutions. The higher expense has to be borne by it. This had a toll on the company’s margins as well. The loss of the castor oil business impacted Ruchi Soya even harder since the firm was already struggling to keep up with rising production expenses. Even though castor seeds only accounted for a small fraction of the company’s profitability, the losses were substantial.
The global market for castor seeds had a significant drop in 2017. Ruchi Soya had put a lot of money into it, only to lose a lot of money. Aside from that, India’s seed and seedlings industry hit a snag when a severe drought hit the country, resulting in crop failure in various sections of the country. All of this had a significant impact on their output. Things have only gotten worse for a corporation that is already having a crisis.
Ruchi Soya, which had formerly been profitable, was now reporting massive losses on its accounting records. For example, the financial accounts for March 2016 forecast a shortfall of over 800 crores. Furthermore, the company’s debts continued to rise to unprecedented heights and were estimated to be in the range of 9000 to 10000 crores. As a consequence of its clients’ failure to pay, it began to see a rise in unsurvivable debts. A total of 5000 crores in loans were written off as bad debts.
The SEBI was also looking into the business because of its deceptive trading operations on the commodities market. They were soon compelled to withdraw from the stock markets.
Ruchi Soya – Future Plans
Ruchi Soya’s Current COO stated that the firm is undergoing numerous rebranding operations. It is reducing expenses and diversifying its product range to include new areas. It has partnered with Adani and with Wilmar to completely reinvent its company.
Distribution and imports networks are also being examined. For the same goal, a Rs 5000 crore investment has been made. Sales increased for the corporation as well. A number of businesses have risen from the ashes and gone on to construct colossal empires. Ruchi Soya will undoubtedly be added to the list.
The business experienced a setback, but it is now back on course, and with a roar. With massive potential and a well-thought-out strategy, the firm is looking forward to a brighter tomorrow filled with exciting changes.
Ruchi Soya – FAQs
What products does Ruchi Soya make?
The product line of Ruchi Soya contains Vanaspati, Biscuit Division, Ruchi Sunlight Oil, Mahakosh Oil, Sunrich Oil, Ruchi Gold Oil, Nutrela Oil, Nutrela, and Soya Foods.
When did Patanjali acquire Ruchi Soya?
Patanjali bought Ruchi Soya for 4,000 crores in a corporate bankruptcy resolution procedure in 2019.
Company Profile is an initiative by StartupTalky to publish verified information on different startups and organizations. The content in this post has been approved by WhiteCub.
Veganism is the way of living with a practice of declining the use of animal productsin diet. It focusses on loving and saving animals and species. Veganism also has the potential to save natural resources like water, forests, grains, and more.
Practicing veganism, one can show love to nature and stay equally healthy as plant-based food items can provide all the required nutrients. Whitecub is a startup in FMCG industry to provide dairy free products. Their intention is to create a harmonious environment where people, animals and nature co-exists.
Read to know about Whitecub, founder, business model, products, and its startup story.
Whitecub is a D2C vegan brand with an Omni channel presence. It is a vegan, dairy free brand and our product offerings includes vegan ice cream, butter, curd, fruit yogurt, cookies, and Hazelnut-Cashew Spread.
Our mission is to make dairy free products accessible across India and take it to the masses. Whitecub want to be the brand of choice for people looking for a dairy free products. Our mission is to make dairy free, plant based products affordable and accessible in India so that everybody can enjoy it. We started with vegan ice-cream back in 2013 and we operate in a niche category currently and want to expand our offering and products to serve all consumers in India. We want to be the vegan brand people trust and opt for. We are also looking at expanding our footprint globally in different markets apart from India. We hope very soon we will be present in other countries via export of our products.
Our long term vision is to create a planet where people, animals and nature co-exists harmoniously. We want to contribute our bit to create a world devoid of exploitation of animals for food. Animal derived food are not only high on carbon footprint but are also often the cause of health complications as well. We are in the middle of a climate crisis and environmentalist are making us aware that we need to act now. White Cub by promoting and making plant based foods accessible to the masses is doing its bit to reduce carbon footprint and contribute towards a better environment. Our vision is to create a future where eating healthy, plant based foods becomes a norm in India and a future where we give animals the respect they deserve and their own space of freedom.
WhiteCub – Industry
We are a D2C brand in the vegan, dairy alternatives industry. We cater to all people who are looking for dairy free or dairy alternative, plant based, healthy products.
Since our inception back in 2013, we have come a long way. In next 5 years we want to be the leader in the vegan, dairy alternatives market by expanding our product portfolio and coming up with more dairy free products like milk, cheese etc. We also plan to expand our offline presence and increase our parlours in cities like Mumbai, Bangalore and other metropolitan cities. We want to take our products to every corner of India through retail chains and parlours. We are also planning to expand our footprints in other markets globally via exports.
WhiteCub – Founder
Sonal – WhiteCub Founder
A health enthusiast, a dedicated vegan, a fierce activist, and an entrepreneur at heart, Sonal is the founder and CEO of WhiteCub – an up-and-coming brand in the F&B industry dedicated to serving vegan alternatives for dairy products.
She holds an MSc in Anthropology and has been working in the vegan industry for more than 10 years. She enjoys cooking, practicing yoga, and reading classics in her free time. She also enjoys gardening and interacting with people. She is an expert cook and possesses wizard-like marketing skills, that have contributed to the growth of her brainchild – WhiteCub.
Sonal and her twins became vegans while they were living in London. She had observed the presence of several dairy and meat alternatives in London’s supermarkets and correspondingly a higher number of vegans there. She could infer that the presence of vegan products encouraged the Londoners to go vegan.
They often used to indulge in the Swedish Glace brand of vegan ice creams while they lived there. On her return to India, though, she found the complete absence of vegan products quite glaring. After all, it was India – a land bathed in dairy milk. As destiny would have it, she took it upon herself to take up the cause of veganism in India by starting a vegan ice cream parlor.
Two factors contributed to it. Firstly, she started indulging in vegan activism in the form of lectures at colleges, presentation of the concept of ‘veganism ‘ at different forums and even volunteering as a vegan coach to assist the few doctors back then who had already started incorporating plant-based diets in the prescription that they gave to their patients.
During this phase, she observed a certain degree of willingness on the part of the masses to adopt a plant-based diet. She noticed that they were willing to give up dairy and meat but only under the conditions of being offered dairy and meat alternatives. The addiction to the taste is biochemical in nature after all and so can’t go away easily.
At this juncture, she started brainstorming with some fellow vegans to start some type of vegan food business. They were willing to donate money to vegetarianism or veganism spreading Not for profit or to an animal shelter but did not consider it wise to invest in a business based on these principles.
Indians were too obsessed with dairy to consider switching to compassionate mylk choices. While Sonal accepted their stance, she remained uncomfortable in this acceptance. She knew she would have to address this issue of a total absence of vegan yummies in the market herself. But ‘how‘ remained a question mark until she got that moment of inspiration.
The family was in Goa on a vacation. They were able to have some vegan ice creams there locally made at a café. They did not have the typical dairy replacements. They were great at a local level but couldn’t have got taken up as a brand. However, this certainly didn’t stop the family from fully enjoying the experience. While they stepped out of the café, Sonal’s eight-year-old son asked whether they can get it in Delhi. This proved to be the spark of sorts for Sonal. What had already been brewing in the background couldn’t be contained any longer. Already, she had encountered hundreds of Indians by then willing to make a switch in the presence of suitable alternatives and now her own little son was questioning her on similar lines.
Before long, she started a vegan ice cream parlor in her city. Ingredient procurements, recipe trials, smaller machines, and then bigger plant purchase – everything followed over a period of a year or so. Then the first parlor opened in 2013.
WhiteCub – Startup Story
Sonal – Founder of WhiteCub
The inspiration for this company has always been the compassion for animals and the care for the environment. Sonal was already a vegan at that point and did some vegan advocacy in terms of lectures, seminars and my association with various organisation.
Her first exposure to vegan products in the form of ice-creams came in my visit to London. Back in India, when she was travelling to Goa with her kids, her son tried vegan ice-cream for the first time and loved it. Her son loved it so much that he asked why can’t they get it in Delhi? It was then that it hit me that India doesn’t’ have a vegan ice-cream brand and she decided to do something about it and decided to start a vegan ice-cream brand.
Sonal did some research on market trends, the ingredients required to make the products and different methods and recipes to make the products. Sonal got her idea validated from her friends and fellow vegans and people who are into healthy eating who became my first customers too. She came up with her own recipe, started experimenting with ingredients at home until she came up with a product that people were delighted with.
Initially, she opened her own parlour with minimal packaging and started delivering to customers directly. Her friends and fellow vegans and neighbours became the first customers and they loved the product. Ingredient procurements, recipe trials, smaller machines, and then bigger plant purchase – everything followed over a period of a year.
WhiteCub – Name, Tagline, and Logo
Whitecub Logo
Whitcub is named for the love and protection of White Lions and their Cubs, as an extension of support for the initiative of Linda Tucker. She has been involved in the protection of white cubs and their families, from the cruel practices of ‘canned hunting’, in East Africa. Thus, all the products carry an emblem of White Cub on Whitecub’s logo.
Whitecub’s Tagline is: ‘Proud to be Dairy Free’ which communicates our USP effectively and how we are proudly marking our footsteps in the industry.
WhiteCub – Products
Whitecub Products
Whitecub products are a vegan, dairy alternatives brand. Its products are completely dairy free. Their products are healthier option for people who are looking for a vegan, dairy alternative products in the market.
WhiteCub – USP
Whitecub Products
All the Whitecub products are dairy Free, Vegan, Trans Fats Free, Palm Oil Free and a healthier choice for people. They started when veganism and plant based products were still relatively a new concept in India. Thus over a period of almost a decade they grew, and today we understand the vegan market in India like no other.
WhiteCub – Business and Revenue Model
We are a D2C brand with an Omni channel presence. We operate through both E-Commerce and Retail chains. We receive the bulk of our order through our official website and have our own delivery network for delivery across Delhi NCR. We are present across major e-commerce channels like Big Basket, Godrej Nature Basket and our retail products are available in major metropolitan cities like Delhi NCR, Mumbai, Pune, Bangalore, Chennai, Kolkata and other metropolitan cities. We also have Zomato and Swiggy as our delivery partner. We also cater for institutional needs like in hotels, marriages, birthday celebration and events.
WhiteCub – Customer Acquisition
We faced a lot of hurdles and challenges in the beginning and it taught us a lot. Initially, I reached out to my friends, community and fellow vegans during potlucks and other activism events. We used to talk about our shared passion for plant based foods, recipes and I used to share samples of our products with them. Once they loved the product, they talked about it to their friend and before long through word of mouth, the demand of our products grew.
Since I was already active in the community, advocating for veganism, White Cub became an extension of that association and helped me to spread the message of the brand through my various association in the initial phase.
WhiteCub – Challenges Faced
Their initial challenge when they were starting the brand was to make people aware and shift to dairy free ice-creams and products. India being a milk loving nation, the idea of dairy free ice-cream or products was relatively new in the Indian market.
With time, the Whitecub team overcame that road block. The biggest challenge was to differentiate themselves in the market:, to find their footing and differentiate their brand from others emerging players and keep the products unique, healthy and delightful that would be loved by the customers.
Another challenge that they faced while developing their Ice Cream was to give it a similar texture and feel in the mouth just as the dairy based products. Instead of dairy we use coconut, soy, and almond milk and so it was initially difficult to give it the same feel as dairy.
Whitecub’s motto is to delight the customer with delicious and healthy vegan offering. So they didn’t use any unhealthy ingredients in their products to give the same feel as dairy which was a challenge. It raised the cost of manufacturing but they didn’t want to compromise on their ethics.
The team conducted local survey in Delhi NCR and Gurgaon and with their customers to rate the products which worked for them. It helped the startup to gather feedback and a lot of data points which eventually helped them to improve the product offerings.
WhiteCub – Competitors
Some of our competitors includes:
Nomou
Vegan Heart
The Vegan Bowl
Papacream
WhiteCub – Recognition and Achievements
Some of the Whitecub achievements are:
White Cub has been awarded with the PETA Vegan Food Awards in 2013 and 2014, two years in a row.
They have been by awarded by the Government of India’s Department of Science & Tech’s Award of excellence.
As a business, they are a proud alumni of Nexus, an Innovation Hub and Business Incubator powered by the US Embassy, ACIR.
They have also appeared in news channels like ‘India Ahead News’ and in various webinars on the topic of entrepreneurship in the vegan foods industry.
Whitecub was featured in ‘Conde Nast’, a French Magazine.
WhiteCub – Future Plans
We plan to keep our present momentum of growth, keep increasing our reach and sales every month and expand our footprints to new markets. Our future plan is to expand our product portfolio to fill the void in the market of dairy-free products. We are working to come up with a dairy free cheese. We are working to come up with dairy free milk that we are confident will revolutionize the market. We are already experimenting with new flavours and will launch soon. The launch of sprinkler parmesan cheese, mozzarella cheese, cheddar cheese and milk are on the anvil.
We also working to open our delivery operations in major metro cities like Bangalore, Mumbai and Kolkata soon. In the future, we want to expand our presence globally and export our products to international markets as well. Our vision is to spread awareness about veganism so that increasingly more number of people opt for vegan dairy alternatives.
FAQs
When was Whitecub founded?
Whitecub was founded in 2013 at Gurugram.
Who is the founder of Whitecub?
Sonal is the founder and CEO of Whitecub.
Are WhiteCub Ice Cream dairy free?
Yes, Whitecub is a dairy free brand. Whitecub ice cream are dairy free.
Company Profile is an initiative by StartupTalky to publish verified information on different startups and organizations. The content in this post has been approved by Eggoz Nutrition.
Health conscious lifestyle is the new trend. People are adopting healthier lifestyles and nutritious diets. They have become good customers of health focussed brands. Eggs are nutritionally rich, that supplies almost every nutrient needed for a healthy body. They are useful sources of some of the hard to get nutrients like vitamins D, B12, and the mineral iodine.
Eggoz Nutrition is a startup creating awareness about consuming healthier eggs. It delivers fresh and chemical-free eggs from lay to the table within 24 hours. They are produced in tech-enabled & nutrition-engineered deep integration partnerships with farmers. They have introduced new enriched variants of eggs.
Know the startup story of Eggoz, its founders, funding details, business model, competitors, and more.
Listen to Abhishek Negi telling the story of Eggoz in an Interview with StartupTalky
Eggoz Nutrition was incepted with a vision of helping society with free from anti-biotic, farm-fresh eggs at the doorsteps of consumers across the country. Also, Eggoz is committed to increasing farmers’ profitability by providing them technological, strategic, and business consulting support. Their strategic collaborations with both urban and rural farms helped them overcome many operational challenges and achieving the company’s vision.
Since all the operations mainly depend on state-of-art technology to ensure the collection of reliable data and real-time monitoring of the egg farms, Eggoz successfully deals with issues such as low production, inadequate storage capacity and disorganized distribution channel.
Backed by visionary leadership and a proficient team, Eggoz is setting new quality standards in the industry and enjoying a good market share. And, with the motto of ‘Happy Hens, Healthier Eggs’, Eggoz is winning the hearts of health-conscious consumers. Recently, the company received Series-A funding of $3.5 million, led by NABVENTURES, a VC fund anchored by NABARD. Other funding participants include top names like Avaana Capital, Rebright Partners and Bellerive Capital along with angel investors Sanjiv Rangrass and Indresh Saluja.
Eggoz Nutrition – Industry
There is an upward trend in people adopting healthier lifestyles and nutritious diets in the Tier-I and Tier-II cities. Moreover, these cities are also advancing into bigger markets leading to opening up humongous business opportunities, and Eggoz is doing its best to tap these opportunities.
Eggoz aims to eventually expand its network to different parts of India to reach millions of buyers. The company also intends to streamline its onboarding experience for farmers, where they will get access to tech information, veterinarian advisory support, and other resources to improve productivity. Eggoz is determined to have a significant Pan India presence in the next 2 years with brand development and market expansion.
Eggoz is investing in building the category and spreading awareness about fresh and healthier eggs. Company plans to expand the technology and platform offerings to its partner farmers and support with more aspects of farming lifecycle.
In the last five years, Eggoz has emerged as the first egg brand in India that focuses on freshness, nutrient-profile, and quality of egg produce. And, Mr. Negi’s vision to ensure profitability for rural farmers and expand the network of Eggoz to various cities and towns, is witnessing a palpable realization.
Eggoz Nutrition – Founders and Team
Abhishek Negi – Co-founder of Eggoz
Abhishek Negi, Uttam Kumar, Aditya Singh, and Pankaj Pandey are founders of EggoZ Nutrition.
Abhishek Negi is an alumnus of the prestigious Indian Institute of Technology, Kharagpur. After getting his engineering degree, Mr. Negi started his journey with Vodafone and was involved in stints spanning across sales, retail, technology, finance & supply chain. With an eye on developing a home-grown and unique brand, he co-founded Roder in Delhi. Roder was an outstation transport service, which changed the overall customers’ approach to booking single-sided intercity journeys. Inspired by many other ambitious & futuristic entrepreneurs, Mr. Negi started Eggoz with his partners – Uttam Kumar, Aditya Singh, and Pankaj Pandey in 2017. Eggoz has emerged as the first egg brand in India that focuses on freshness, nutrient-profile, and quality of egg produce. Mr. Negi’s vision is to ensure profitability for rural farmers and expand the network of Eggoz to various cities and towns, including Tier-II and Tier-III cities.
In the future, Mr. Negi hopes to develop Eggoz into a brand that customers can rely on, not merely for the quality of product but also for the brand’s practices. Eggoz will eventually allow consumers to express their solidarity with rural farmers, who have been struggling with effective distribution of egg produce for years now. Apart from his current ventures, Mr. Negi also hopes to nurture and support other entrepreneurs and startups in exploring the Indian market through his expertise.
Eggoz Nutrition – Startup Story
Growing up, Abhishek has always been fond of eating eggs on a daily basis. After departing from his first start up, keeping fit and eating healthy became his primary goals and it was during this phase that he realized the impact of protein rich diet. He could not my get hands on freshly sourced and good quality eggs. The ones that he obtained in Gurgaon were either stale or exposed to chemicals, making them detrimental for health. These facts are bewildering for a nation, where the consumption of eggs is exponentially rising with the current figures standing tall at 86 eggs per person each year. However, a mighty chunk of these eggs do not qualify quality checks, are sold in unpackaged form and are stripped off 50 to 60 per cent of the minimum nutritional value. Eggoz, he along with other founders collated this data after extensive analysis, which was conducted by experts by studying egg samples sourced from all across India. It was also found that other factors such as delay in harvesting of eggs, failure in implementation of cold chain and regular use of antibiotics, growth hormones and detrimental chemicals, also contribute in making of eggs that lack freshness and quality.
After perceiving the changing consumer preferences and the inevitable market shift towards packaged goods, it was only prudent to invest in this untapped market. Although they had their prior market research and figures in place, members of the founding team had to toil hard in the farms in order to gain on-ground insights and experience. Working with a company that owned a 12,000 bird farm initially gave them the appropriate acumen to comprehend the nitty-gritty of poultry farming such as setting up the farm, deployment of day old chicks, vaccination procedure, feed formulation, egg sales, diagnosis etc. This gave business plan the impetus to gradually migrate to a robust and technology backed farming installations at any poultry farm to get standardized output. By the end of 2019, business operations of Eggoz rose exponentially asthey joined forces with 6 farms and had amassed a bird capacity of 80,000. Amidst pandemic, because of high level quality checks including UV-sanitization treatments and omni-channel distribution networks, Eggoz continued to acquire more market share by expanding into 6 cities across 5 North Indian states.
Eggoz brings to the table finest quality eggs, which are freshly sourced, treated with UV- sanitization after procurement, rich with bio-available protein and vitamins, and are free from avoidable hormones, antibiotics, and chemicals. The robust integrated model of Eggoz allows to collaborate with farmers and deploy IoT & technology backed applications, reducing the gap in the procurement and supply of eggs in just 24 hours.
Another glaring concern that Eggoz has tried to address is the unavailability of effective backward market linkages for poultry farmers, and lack of hygienic and packaged format of eggs sale. Transparency and ability to incorporate technology oriented solutions have led to an efficient supply chain management and this is what makes the startup stand out in the egg farming industry. Maintenance of top level quality checks, real time monitoring of birds coupled regular doctor visits and audits of the farm and widespread omnichannel distribution channel is inextricably linked to satisfaction of customers, income amelioration of farmers and credibility of Eggoz company.
Eggoz Nutrition – Business Model
Eggoz is a vertically integrated farm-to-consumer startup, which had adopted an asset-light business model in order to unite with small and mid-scale farmers. By virtue of this collaboration, the farmers are on-boarded to a streamlined program where they receive technological support, and other auxiliary aid such as veterinarian visits and audits. With this structure the goal is to bring superior quality eggs sourced from farms under the brand of Eggoz and cater it to the urban and semi-urban consumers. With an omnichannel distribution model in place, the company can ensure widespread presence through D2C, Online MTs, Offline MTs and General trade.
Eggoz Nutrition – Customer Acquisition
When Eggoz was started, the plan was clear that getting hold of the first 100 customers will be toilsome, but if done smartly these 100 customers would prove to be the most paramount. Within 2.5 years of establishing the company, their farming integration model had witnessed two major launches amassing a bird capacity of 1,00,000 and 10 farms. Their visions and operations at Eggoz was backed by angel investment worth INR 1.2 crore during its inception in 2017 and seed funding of INR 2.2 crore in 2019. The company’s stable and ever increasing return on investment and improving farm performance was the reason behind Eggoz’s brand expansion to six cities across five north Indian states in the year 2021. By delivering consistent fresh quality, they started to gain significant traction among consumers.
Eggoz soon rose to fame because of its prompt delivery of fresh and packaged eggs straight from farm under a time frame of 24 hours of laying. Moreover, growing health consciousness and significant upsurge in demand for hygienic and packaged eggs has worked in favor of Eggoz’s business goals. With the aim of accomplishing first nationwide farm-to-consumer brand that is centered around superior quality, high bioavailable nutrition and freshness, Eggoz has struck a chord with the Indian demographic.
Eggoz Nutrition – Funding
Date
Stage
Amount
Investors
2021
Series A
$3.5 Million
NABVENTURES
2019
Seed Funding
$2.2 Million
2017
Angel Funding
$1.2 Million
Eggoz was started in 2017, the strategic and tactical business plan was found worthy enough to secure an angel funding of $1.2 million by Sanjiv Rangrass and Indresh Saluja. The financial succor provided by angel investors helped lay the foundation of the company and aided the running of its operations on earliest of their farms. In 2017-2018, Eggoz had begun its foremost expansion plans in the state of Madhya Pradesh and had acquired a total of 60,000 birds resulting in a major return on investment. In 2019 as its popularity grew, they procured a massive seed funding amounting to $2.2 Million. The funds were extremely valuable for a budding company like Eggoz, not only did they envisage to work closely with the farmers and improve their egg productivity by introducing technology backed solution, but they also had to enhance farmer profitability through innovative and extensive market linkages. Ever since they have contemplated for diversifying Eggoz product portfolio, there has been an upswing in its demand. This has made the startup raise a series-A funding of $3.5 Million, led by NABVENTURES. With this funding, Eggoz intends to increase its brand footprint, launch egg-based value-added products, and enter new geographies.
Eggoz Nutrition – Advisors
The company kick started with the four business enthusiasts coming together and ever since that it has remained like that. With a highly proficient team, the company has become competent to abreast any uncertainty ranging from on-field problems, technology support, appraisal of business plans or even social media marketing.
Eggoz Nutrition – Challenges Faced
When founders set up Eggoz, the founding team did not have requisite knowledge and expertise in poultry farming. This certainly was one of the setbacks when they started which they had to address so as to deploy high yielding farm. Working on ground helped them gain the required knowledge and made Eggoz team competent to determine how to upgrade the farms with technology oriented solutions. As soon as they acquired this intelligence, Eggoz was prepared to scale-up its production facilities and extend its supply chains.
In its early days, Eggoz founders were experimenting with various kinds of feed ingredients which were natural, protein rich as well as better for the hens. However, scaling the production of such ingredients was a major challenge due to the nature of its production. This is why, they decided to shelf this plan for later.
Eggoz Nutrition – Marketing Campaign
Eggoz Marketing Campaign – Extra in the Ordinary
Recently Eggoz has launched a campaign “Extra in the Ordinary” which aims at uplifting the spirit of Indian diaspora enabling them to recognize their true potential. There is an increasing demand for hygienic and decontaminated perishable eatables. This is why with “Extra in the Ordinary” campaign is important to emphasize the fact how a daily dose of Eggoz nutrition helps make people Extra In The Ordinary. This campaign was instrumental in enlarging the consumer base, increase the brand’s credibility, acquire new consumers, and raise awareness about how essential it is to consume superior quality and standard quality eggs.
The crux of Eggoz was always adaptation of technology oriented solutions in poultry for high yielding egg farms. And they stuck to their plan ensuring real time monitoring of farms to identify and assess the deviations that may influence the quality and productivity of eggs and farm respectively. Data played an important role in optimizing the bird performance and making business forecasts. As a start-up they were aware that they needed a solid customer relationship management plan in place in order to centralize all business activities and keep them customer-centric. Investing in an influential and relevant marketing strategy helped them create its extensive omni-channel distribution network. Moving forward, they are planning for a pervasive digital marketing campaign which will play a key role in enlarging its customer base and also stay engaged with the current customer base.
Eggoz Nutrition – Recognition and Achievements
Eggoz has been fortunate to have been recognized for its excellence so early in its journey. They were proclaimed the winner of ET Leaders of Tomorrow (Winner) in the year 2020 and the finalist of Aegis Graham Bell Award (Agri-Tech) (Finalist) in 2021. Such accomplishments are testaments of the dedicated efforts of quality service and customer satisfaction.
Eggoz Nutrition – Future Plans
In 2022, Eggoz will be climbing up the ladders by deepening it penetration amongst the Indian demographic. With aggressive and well thought of plans on table, Eggoz intends to enter new markets and transform the egg supply chains. Being one of the proponents in the agri-tech sector, they are aiming to extend the technology integrated solutions and applications to partner farmers, and provide consistent support to ensure an even more productive farming lifecycle. They have strategized and conducted prior market research as they look forward to entering markets down south and west of India.
FAQs
Who is the founder of Eggoz?
Abhishek Negi, Uttam Kumar, Aditya Singh, and Pankaj Pandey are founders of EggoZ Nutrition.
When was Eggoz founded?
Eggoz was founded in 2017 at Gurugram.
What does Eggoz do?
Eggoz provides farm-fresh, UV- sanitized, antibiotics-free, and chemical-free packaged eggs within 24 hours.
What are the products of Eggoz?
Eggoz products includes finest quality of eggs, which are freshly sourced, treated with UV- sanitization, rich with bio-available protein and vitamins, and are free from avoidable hormones, antibiotics, and chemicals.
