Chennai: More and more Indians have started to migrate in recent times and the urban population will only increase by 150 million in the coming decade state reports.
With such an exponential rise in urban population the ready-to-eat and ready-to-cook markets are set to grow, with new players expected to come in to capture the untapped potential that lies within the industry.
Gits Food Products is one firm which has been in the field from the 1960’s and News Today has a chat with Sahil Gilani, director – Sales and Marketing at Gits Food Products Pvt Ltd.
Excerpts from his interview-
Q: Currently, the RTE and RTC market in India is worth around Rs 1,200 crore and is growing at 10-15 per cent year-on-year. When compared with developed nations, where do you think India is present at the moment?
A: Ready-to-cook (RTC) products are widely accepted in India now, compared to when we launched in the ’60s. For several decades we were an export driven company, but today domestic sales contribute 60 per cent of our revenue. As millennials are coming into the kitchen, the need for convenience foods is growing. I believe we are barely scratching the surface yet but with rapid urbanisation, busier lifestyles and diminishing culinary skills, the demand for convenience foods has a bright future. The industry needs to come together and increase consumer awareness about the category, and break the myths associated to catapult this growth.
Q: Could you reveal to us the firm’s revenues and growth in the last financial year and growth plans for future?
A: At Gits, overall, we expect double-digit growth next fiscal. There are a lot of exciting new products as well as business strategies being implemented this year hence we are certain that our growth rates will only get better each year on.
Q: Give us the details about your expansion plans.
A: Besides extending the Gits’ breakfast mix portfolio to include superfood mixes (like brown rice and flax seeds idli mix, oats idli mix among others) and introducing organic and vegan versions of our popular ready meals abroad, we have also expanded our dairy business in recent years. We have two segments in the dairy category – fresh and long shelf life dairy products. Products like ghee, dairy whiteners are sold nationally as they have a longer shelf life. Fresh products such as milk, curd and buttermilk are sold regionally in the west mainly in Mumbai and Pune markets. For the fresh category, we plan to remain regional and expand deeper in the west. There is no plan to go national with fresh dairy products due to their low shelf life.
Q: Having started at the firm as a sales intern and been with the firm for many years, in what direction do you think your firm must be headed in this changing world?
A: I would like to see Gits scaling newer heights and diversifying its portfolio keeping the consumer’s evolving needs in mind. We started as just RTC moved to RTE and then dairy. There is a lot to do within these three categories, infact we have launched a dozen new products over the past 18 months. Over the next few years, the lines between the RTC and RTE category will blur in our offerings. We are focusing on not just our core target audience but also the millennials who are looking more convenient options. Hence our new launches will be focused on requiring a lot less time and effort. Albeit, keeping the quality, taste and safety intact. We continue to stand for natural products!
Q: With the Maggi controversy settling down, how is the perception among people about RTC food?
A: There are numerous myths around packaged foods, it is unfair to regard all packaged foods are unhealthy and junk. There are brands like Gits that keep an all-natural promise. It is a combined effort for brands to break such misconceptions via packaging and other communication methods. Educating consumers is an important task.
Q: There is a growing trend of returning to traditional methods. On the other hand there is a rising migrant population which depends on RTC and RTE food. How do you see the trend keeping up?
A: The Ready to Eat and Ready to Cook market in India is growing at a good rate owing to a plethora of factors such as growing income, rapid urbanisation that in turn results in the constant time crunch faced by students and working professionals. A very crucial segment of consumers in particular is the Indian middle class, whose consumption power is again rising. They are exhibiting a paradigm shift in their lifestyle choices and living standards, hence causing a surge in demand for these products. Most importantly, people are now open to RTE and RTC products because of the educative initiatives undertaken by brands. Brands today are actively engaging with consumers and addressing their apprehensions about the category. Packages indicating- no preservatives, no MSG, no artificial colours and flavours etc., play a significant role in instilling consumer confidence.
Q: A word about your distributors, investors and about future partnerships if any.
A: Gits has a pan-India presence with over 1,000 distributors across the country. We also export to over 40 countries, where we are not only present in ethnic stores by also international chain stores like Walmart, Costcos, Woolworths, etc. Additionally we also sell online across Big Basket, Amazon, Flipkart and our own website e-store www.gitsfood.com wherein you can order our entire range directly from our factory to your doorstep. We are completely family held and do not have any external investors.
| Legacy |
| “The GITS brand name is derived from the founder’s last names – H Z Gilani and A K Tejani (and hence GITS) who founded the company in 1963. Gits is the pioneer to kick-start the convenience food category in India by being the first company to launch instant mixes in the country. Since inception the company’s motto is clear – ‘We will not sell what we don’t relish’,” stated Sahil about his firm’s legacy. |
| Export significance |
| “Exports is a significant part of our business, contributing 40 per cent to our revenue. Infact for the first 45 years of the company we were majorly export driven. We export to 40 countries; therefore, the distribution is widespread in ethnic as well as international chain stores. Our strategy over the past decade has been to take drive distributor depth to mainstream markets and also focus on NRI consumers. We advertise on Indian channels abroad on a constant basis since 20 years,” said Sahil Gilani. |