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“We plan to set up green field project; outlaid Rs.550 m”
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Monday, 18 August, 2014, 08 : 00 AM [IST]
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fiogf49gjkf0d RTE (ready-to-eat) contr  ibuted about 90 per cent to total sales in the packaged food industry in 2013. In an email interaction with Anurag More, Iqbal Fazlani, MD & CEO, Fazlani Exports Pvt. Ltd, explains how busy lifestyles are leading to a surge in demand for convenience products, especially due to an increase in the country’s female working population. Excerpts:
How big is the RTE sector in India?
The RTE sector is currently the fifth-largest in India, and it contributed about 90 per cent of total sales in the packaged food industry in 2013. Busier lifestyles are leading to a surge in demand for convenience products, especially due to an increase in the country’s female working population. The sector is anticipated to continue growing, thanks to surged urbanisation, inclining dispensable household earnings and augmenting middle class.
What is your share in the market?
Fazlani Foods strives to be one of the top three companies in the RTE sector. With the success of our current range and the frequent introduction of new appealing products, we are certain that Fazlani Foods will soon become a household name.
Brief us about your product offerings in RTE.
We currently offer the following in the RTE range:
Ready-to-eat Pouches: Our vegetarian range features shahi paneer, brinjal curry, palak paneer, dal tadka, rajma masala, dal makhani, Amritsari chole, subz-e-biryani and aloo mutter. Our seafood range includes prawn biryani, Kashmiri prawns and Malabar prawns.
Chutneys: Sweet mango chutney, tamrind & date chutney, coriander chutney, mint chutney and dry fruit mango chutney.
Pickles: Our vegetarian pickles include sweet mango shredded pickle, sweet lime pickle, sweet mango pickle, spicy mango pickle, garlic pickle, green chilli pickle, lime & chilli pickle and mixed pickle. Our seafood pickles feature tuna pickle and prawn pickle.
Pastes: Ginger paste, garlic paste, garlic & ginger paste, green chilli paste, coriander paste.
Sweets: Rasgulla and gulab jamun (available in 500 gm and 1 kg tins).
Launching soon
Simmer Sauces: Butter chicken, chicken tikka, rogan josh, vindaloo, Thai green curry, Thai red curry, Mexican salsa, manchurian, schezwan, barbeque, Italian red and arabita simmer sauces.
Frozen Ingredients: Green peas, mixed vegetables, sweet corn, paneer cubes and mango pulp.
Tell us about your expansion plan.
Fazlani Foods continues to add new products to its range, the newest being frozen ingredients. We are also shortly introducing our new range of simmer sauces. Domestically, we intend to be on the shelf of every major supermarket. Internationally, we intend to expand within the major sectors – North America, Australia and Europe. Fazlani Foods’ vision is to be on every major retailer’s shelf in these sectors, and to be the go-to choice for any individual in the ethnic or mainstream markets.
How much are you investing for the expansion?
Fazlani Foods has already invested about Rs 75 million in a dedicated in-house facility that ensures the entire packing process from start to finish. In addition, we are planning to set up our own greenfield project to cater to future demands, for which our outlaid investment is around Rs 550 million. This investment will facilitate our current offerings as well as new products that we will introduce in the future.
We have ensured that our vision has all the resources possible, including top-of-the-line ingredients, packing material, machinery, and proper promotional tools. We are dedicated to making the best products possible, and are excited about bringing it to the world.
What are the challenges faced for RTE?
The biggest challenge at this moment is the scepticism of RTE foods. People are more health- conscious today than ever and therefore prefer choosing freshly prepared over packaged food. Another challenge faced is the lack of variety, as it gets monotonous to have the same meals over and over again.
How is the sector coping with the challenges?
To cater to India’s health-conscious population, companies have begun introducing foods such as salads to cater to their healthy needs. They are also listing nutritional information in utmost detail so the customers know exactly what is in the package. The quality of packaging is key in keeping freshness for longer, so companies are investing in good packaging material that holds a longer shelf-life. For frozen products, we are ensuring that the goods are stored and transported in right temperatures which maintain the quality of the product.
What are the trends in the sector?
In India, the retail outlet culture is growing rapidly, lending to the growth in the RTE sector. More women joining the workforce want to spend time out of the kitchen, and more working bachelors are now moving away from their homes. To these target customers RTE food serves as a cost- effective alternative to eating at a restaurant frequently. They are also able to store RTE products for long, since most of these foods have a shelf life of 18 months. The globalisation of Indian food, the preference of convenience and the need to save time contributes to the continued growth of the RTE sector.
How are the government regulations for the sector?
We are happy that the FSSAI (Food Safety and Standards Authority of India) is bringing in systems and labelling legislations which help the consumers also keeps manufacturers like us on our toes.
A drawback for the RTE sector is the current tax structure for processed foods. RTE foods are subject to excise tax. Branded food items attract higher sales tax, and the customs duty on packaging materials continues to be high. This results in RTE foods being costlier than fresh foods, which hinders the popularisation of these products in India.
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