'Branded ready-to-eat meals not popular in India yet': ITC Foods chief
India’s ready-to eat (RTE) branded food cuisine is proving to be far more popular in the global mark…India’s ready-to eat (RTE) branded food cuisine is proving to be far more popular in the global markets than in the domestic arena. This is because dual-income homes in India find the increasing number of well-established neighbourhood restaurants far more acceptable and convenient, views Chitranjan Dar, divisional CEO, ITC Foods Limited.
“In the western world, RTE is looked upon as the ultimate in convenience. In fact, the entire ITC range under the ‘Kitchens of India’ brand has a wider acceptance in the global markets. These products are sold out of mainline stores in the US and UK to the non-Indian population. Therefore, the success of these products is higher overseas compared to the domestic markets,” Dar told F&B News during an interaction at the sidelines of the Bangalore Chamber of Industries and Commerce (BCIC) event on Food Safety amd Standards Regulations (FSSR).
“The segment is yet to pick up in India. Factors deterring the Indian consumer from going in for RTE range are flavour, freshness, affordability and preference for home-cooked food. Companies will need to drastically improve price competitiveness to make them popular,” he added.
The ITC Foods chief pointed out that all Indian companies engaged in RTE have a range covering packed meals, vegetarian curries, non-vegetarian culinary products, biryanis and desserts. They will need eight or ten years to make a mark in the market and generating the required revenues will be challenge in the next three to five years.
Companies will need to improve distribution channels, address new markets and educate the consumer on the convenience of eating traditional food preparations in handy, single-serve and shelf stable ready-to-eat packs.
“Although RTE companies maintain that these products are shelf stable, safe and devoid of preservatives because of retort packaging technology, consumers are not convinced. This technology also helps retain the freshness and taste. In India, it is a question of culture ruling over convenience when it comes to RTE,” said the ITC Foods chief.
The ready-to-eat dishes – either at room temperature, refrigerated or frozen -- require minimal preparation. There is need to highlight the heat-and-eat and microwaveable concept which saves time for the affluent and on-the move population.
According to a report by the Tata Strategic Management Group, the ready-to-eat market in India, estimated at Rs 128 crore in 2006 is expected to reach Rs 2,900 crore by 2015. The leading players are ITC Foods and MTR, among others.
