Britannia, which also makes cakes and breads, has created smaller, empowered teams and increased localisation efforts to respond to growing competition from regional brands that are gaining traction in local markets, he said.
“We are localising our product, we have created a team of many Indians, we are empowering regional teams,” Hargave said on the sidelines of an event organised by industry body FICCI.
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Hargave said local companies with regional products are a “reality” and require a differentiated competitive approach.
“If we have to compete with them, we have to compete with them on an even scale,” he said.
He did not comment on the pricing strategy but said Britannia enjoys the strength of a nationally recognised brand; success at the consumer level depends on matching local competitors on factors such as pricing, taste and packaging.”So whether it is price, taste, packaging and its expectation, you have to compete. Because on the ground, I might have a more famous brand, otherwise everybody is equal,” Hargave said.
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Large companies operating in the packaged food space are facing stiff competition from several regional food brands which are expanding their footprints across states, intensifying competition in categories such as biscuits, snacks and bakery products. They are offering aggressive pricing, better distributor margins, and products tailored to vernacular taste preferences.
When asked about the demand environment, Hargave said inflationary trends remain uncertain, and the industry continues to monitor developments closely.
“So, the inflation, which happened as a result of the (high) crude, is still there. Now we have to see how it develops. We are all saying it is unpredictable,” he said.
Hargave also highlighted the growing importance of quick commerce as a channel for innovation and premiumisation, noting that it caters largely to urban and younger consumers.
“By nature of the geography and the disposition, you will see more premium products, more experimental products being bought,” he said.
He added that quick commerce offers companies an opportunity to test new products and adjacent categories with lower risk and faster consumer feedback.
However, Hargave also mentioned:”The cost of entry, the cost of failing is also fast. So, it is a good place to experiment and learn and also get some business. And if it does well, you can also take it to other channels.”