Kellogg's targets Indian growth

12 November 2010

NEW DELHI: Kellogg's, the food company, is planning to launch more low-cost products which it believes will prove attractive among Indian consumers.

In 2007, the US firm unveiled reduced-size breakfast cereal lines commanding just ten rupees ($0.22; €0.16; £0.14), an approach that could act as a template in the future.

"Small packs are a big growth driver for us. It has expanded our reach and penetration across the country," Vikram Bahl, head of marketing, Kellogg's India, told the Economic Times.

"Going forward, we expect that we will continue to evaluate opportunities and come up products which are affordable."

Other recent introductions include Heart-to-Heart Oats, targeted at men aged 35 years old or above, with prices ranging from 29 rupees to 118 rupees.

"In the last three-to-four years, we have come up with one new product every year," said Bahl.

"With changing lifestyles, young people over the age of 30 are vulnerable to heart diseases. So we see clear opportunities for the oat segment."

Competition in Kellogg's core sectors is intensifying, as multinationals like GSK Consumer Healthcare and domestic operators like Britannia seek to gain a foothold.

"The ready-to-eat cereal market is around 400 crore rupees. It is growing at the rate of 20-30%," Bahl suggested.

"The overall packaged food industry is also growing. So everyone will have its own space in the market and ultimately will help grow the category," he said.

Data sourced from Economic Times; additional content by Warc staff