Business
How local brands like Balaji Wafers, Rungta Tea are taking the fight to big FMCG players
Regional FMCG brands are rapidly expanding to challenge national brands after outpacing them and posting double-digit sales growth in the past two quarters as inflation cools off. Brands like Rungta Tea, Balaji Wafers, Mario Rusk, and Bovonto soft drinks are among those increasing their brand visibility and diversifying their offerings after emerging stronger from pandemic disruptions, according to an ET report.
Rungta Tea, operating in markets such as Uttar Pradesh, Rajasthan, and Bihar, is setting up tea parlors akin to Chai Point and Chaayos. They are also establishing an ecommerce team to expand their presence. Girjesh Rungta, Managing Director of Rungta Tea, expressed their intention to move to the next level while maintaining a focus on quality and innovation.
“We are growing faster than many national brands in markets we are present in and have relationships with distributors and customers. Now we are moving to the next level with tea parlors and ecommerce, while continuing with quality and innovation,” he told ET.
According to Kantar Worldpanel’s recent report, local brands achieved a 12.7% growth by volume between April last year and April this year, surpassing national brands, which grew 8.2%. The success of regional brands is attributed to innovation and wider distribution.
Balaji Wafers, based in Rajkot, is setting up its first plant in North India, in Lucknow, as part of its expansion strategy across India gradually. The brand has been aggressively wooed by PepsiCo’s Indra Nooyi and other large snacks giants. Chandubhai Virani, the founder of Balaji, emphasized their commitment to a value-for-money approach.
Bovonto soft drinks, known for products like orange and ginger ale fizzy drinks, is planning to expand beyond its core markets in Tamil Nadu and Andhra Pradesh. Additionally, Mario Rusk has enlisted actor and singer Diljit Dosanjh as its first brand ambassador.
This trend of regional brands going national is evident across various product categories, including snacks, tea, biscuits, detergents, soaps, and toothpaste. These regional giants are characterized by their founder-driven operations, which allow for quick responses to market challenges, says Sumit Agarwal, co-founder of Vitrak ExtendReach, a platform for traditional trade distribution.
They also have “razor-sharp focus on the category”, he said. “Unlike, say, an HUL, these brands don’t focus on different categories at the same time,” Agarwal said. “Also, they operate with no frills – they are able to give enhanced value to the consumer.”
Rungta Tea, operating in markets such as Uttar Pradesh, Rajasthan, and Bihar, is setting up tea parlors akin to Chai Point and Chaayos. They are also establishing an ecommerce team to expand their presence. Girjesh Rungta, Managing Director of Rungta Tea, expressed their intention to move to the next level while maintaining a focus on quality and innovation.
“We are growing faster than many national brands in markets we are present in and have relationships with distributors and customers. Now we are moving to the next level with tea parlors and ecommerce, while continuing with quality and innovation,” he told ET.
According to Kantar Worldpanel’s recent report, local brands achieved a 12.7% growth by volume between April last year and April this year, surpassing national brands, which grew 8.2%. The success of regional brands is attributed to innovation and wider distribution.
Balaji Wafers, based in Rajkot, is setting up its first plant in North India, in Lucknow, as part of its expansion strategy across India gradually. The brand has been aggressively wooed by PepsiCo’s Indra Nooyi and other large snacks giants. Chandubhai Virani, the founder of Balaji, emphasized their commitment to a value-for-money approach.
Bovonto soft drinks, known for products like orange and ginger ale fizzy drinks, is planning to expand beyond its core markets in Tamil Nadu and Andhra Pradesh. Additionally, Mario Rusk has enlisted actor and singer Diljit Dosanjh as its first brand ambassador.
This trend of regional brands going national is evident across various product categories, including snacks, tea, biscuits, detergents, soaps, and toothpaste. These regional giants are characterized by their founder-driven operations, which allow for quick responses to market challenges, says Sumit Agarwal, co-founder of Vitrak ExtendReach, a platform for traditional trade distribution.
They also have “razor-sharp focus on the category”, he said. “Unlike, say, an HUL, these brands don’t focus on different categories at the same time,” Agarwal said. “Also, they operate with no frills – they are able to give enhanced value to the consumer.”
