FMCG-Chips

Introduction
Market Size: US $3 billion Unorganised market (US $1.56 billion)
CAGR: 15-20%/annum
Contribution to GDP: 21% (Foods Industry)
Market Leader: Frito Lays (48%)
Interesting Trivia
o According to a study by McKinsey & Co, the Indian food market will grow two fold by 2025
with the rapidly growing Indian economy and improving lifestyles of Indians contributing in a
big way to this growth.
o There are approximately 1,000 types of snacks and another 300 types of savouries being sold
in the Indian market today.
o Indians in the western regions eat the maximum amount of snacks, followed by the people in
northern region.
o Potato chips and potato-based items are the most popular products with more than 85 per
cent share of the salty snack market, the report said.
o In the organized potato chips market, some of the leading players are Pepsi, Haldiram's, ITC,
Britannia, Bikano, Balaji, Marico, Dabur etc.
Value Chain

Procurement of Delivery of raw Production

materials to
Raw Materials of chips
manufacturing plant

Delivery to Transportation to
distribution centers
Retailers

Company Updates

Pepsi Foods

Uncle Chipps
Launched in 1992, Uncle Chipps was a pioneer in branded potato chips in India.
The brand was acquired from Amrit Agro Ltd. in 2000 by Frito-Lay India.
Aliva
Aliva was launched in June 2009
Hybrid product between chips and biscuits
Kurkure
Launched in 1999 , this perfect 'namkeen' snack, fully developed in India
 Certified by OHSAS
High weight to price ratio.
Lays
Lay’s - world’s largest and favorite snack food brand
In India since its launch in 1995

Haldiram's

Chips
Offered in 5 flavours
Traditional potato chips

Haldiram's Banana Chips Tangy Tomato

Aimed at nutritional aspect

ITC

Bingo
The launch of Bingo! in March 2007 marked ITC's foray into the fast growing branded snack foods
segment
4 innovative variants
ITC's Bingo has managed to grab 20 per cent market share

Mad Angles
Khakra inspired

FritoLay India leads the market with a share of 48 per cent. Haldiram's and ITC have a market share
of 27 and 20 per cent, respectively

Latest from Sector

o Frito Lay launches "Kurkure spend time with family program
o Lay’s Mastana Mango voted as Flavour of the Nation!
o Export of Kurkure, Aliva considered by Frito-Lay India
o PepsiCo India to set up low-cost foods unit as buy out talks with Balaji Wafers fail
o Frito-lay, ITC to build new potato chips plants in India

Future take
o launch of new flavours in the non vegetarian category like the roasted chicken chips
o Stance to move towards more health conscious chips

Authors:
Abhinav Singh pg10abhinav_s@mdi.ac.in
Prateek Bhatnagar pg10prateek_b@mdi.ac.in