Despite GST backlash, Kraft Heinz India confident of double digit growth in 2018-19

Despite GST backlash, Kraft Heinz India confident of double digit growth in 2018-19

The world’s fifth largest food and beverage company Kraft Heinz India’s growth slipped last fiscal with the roll out of goods and services tax (GST), but the company is confident of bouncing back to double digit growth in 2018-19 chasing volume growth in the first half of fiscal and value growth in second, Managing Director Sankalp Potbhare said.

he makers of Glucon-D, Complan and Heinz tomato ketchup, Kraft Heinz India will focus on the existing portfolio to get back into growth mode with enhanced penetration in most of its categories like glucose, milk food drink (MFD) and sauces.

“The entire FMCG industry was impacted last year due to GST. This year we are confident to get back on full steam and healthy double digit growth. The green shoots are already visible with GST processes getting streamlined and rural markets picking up. Consumer demand is almost back to pre-demonetisation days though some pockets like wholesale are yet to pick up fully,” said Potbhare.

Potbhare did not share the company’s revenue but industry analysts estimate it to be around Rs 1700-1800 crore. The glucose drink, Glucon-D, is the largest brand accounting for little less than half of its revenue followed by Complan.

The company on Thursday announced the appointment of former cricketer Sourav Ganguly as brand ambassador for Complan. With this, the brand got a celebrity endorser after four years when it had associated with Amitabh Bachchan. Kraft Heinz India expects Ganguly will help revive Complan in Rs 6,000 crore MFD space.

Since Complan’s relaunch in India last year, the brand has been growing at healthy double digits and he is confident of reclaiming lost ground in three years, Potbhare said. Three years back, Horlicks was the market leader followed by Bournvita and Complan.

At present, GSK’s Horlicks is the market leader in the MFD space followed by Mondelez International’s Cadbury Bournvita and GSK’s Boost. While GSK has indicated its wants to sell Horlicks and media reports have named Kraft Heinz as a possible suitor amongst others, Potbhare declined to comment on this.

Asked about competition from Patanjali, Potbhare said there has been no impact in MFD and glucose where Patanjali has products but with very small market share.

Source: https://economictimes.indiatimes.com/industry/cons-products/food/despite-gst-backlash-kraft-heinz-india-confident-of-double-digit-growth-in-2018-19/articleshow/64126605.cms

Print Friendly, PDF & Email

Leave a Reply

Your email address will not be published. Required fields are marked *