The Ready-To-Eat Market in India
Processed foods industry is opening a new window in world scenario as far as taste & acceptance is concerned. The retort processed foods do not require rehydration or cooking and can be consumed straight from the pouch with or without pre-warming, depending upon the requirement of the users and the weather conditions. Today, almost all companies in food processing sector using "Retort Technology" developed by Defence Food Research Laboratory (DRFL). Up until a few years back, the RTE foods market had not really provided any options beyond the Cup O Noodles produced by Indo-Nissin.
The Indian Ready to Eat (RTE) and Ready to Cook (RTC) food segment has emerged from its early days of being a fringe alternative to home cooked meal or to eating out.
Further, the growth of modern retail has provided unprecedented brand and category visibility to convenience foods. Also, technological advancements in packaging and flavor science have brought RTE and RTC foods centre-stage among urban Indians.
The market of processed food industry in India has been a new concept which is in its nascent stage. The total processed foods market size this year is Rs1500 crore, out of which Ready to Cook foods capture Rs 1275 crore and Ready to Eat capture Rs.225 crore this year and is expected annual growth of 25 – 30% over next 5 years shows huge potential for growth by tapping a larger consumer base.
An analysis of the drivers explain the factors for growth of the industry including the target consumer base for RTE is expanding, organized retail displays advantages in driving RTE sales, cold chains development, and government initiatives. Indian Government is also providing more
infrastructure for this sector. Excise duty is now ZERO % on RTE and 100 % tax deduction for the first 10 years for new units. This allows manufactures to bring down their prices & spreads its flavors to the world. The prices of most brands in this segment range from Rs25/- to Rs.40/- for a typical 285g dish. Purchases for overseas travel constitute almost 10% of sales in this category. MTR foods is the largest player in this emerging market with a near 65% share. The rest of the market is made up of Satnam Overseas, ITC, Tasty Bites, GCMMF, Haldiram and other local players.
The Indian Ready to Eat (RTE) and Ready to Cook (RTC) food segment has emerged from its early days of being a fringe alternative to home cooked meal or to eating out.
Further, the growth of modern retail has provided unprecedented brand and category visibility to convenience foods. Also, technological advancements in packaging and flavor science have brought RTE and RTC foods centre-stage among urban Indians.
The market of processed food industry in India has been a new concept which is in its nascent stage. The total processed foods market size this year is Rs1500 crore, out of which Ready to Cook foods capture Rs 1275 crore and Ready to Eat capture Rs.225 crore this year and is expected annual growth of 25 – 30% over next 5 years shows huge potential for growth by tapping a larger consumer base.
An analysis of the drivers explain the factors for growth of the industry including the target consumer base for RTE is expanding, organized retail displays advantages in driving RTE sales, cold chains development, and government initiatives. Indian Government is also providing more
infrastructure for this sector. Excise duty is now ZERO % on RTE and 100 % tax deduction for the first 10 years for new units. This allows manufactures to bring down their prices & spreads its flavors to the world. The prices of most brands in this segment range from Rs25/- to Rs.40/- for a typical 285g dish. Purchases for overseas travel constitute almost 10% of sales in this category. MTR foods is the largest player in this emerging market with a near 65% share. The rest of the market is made up of Satnam Overseas, ITC, Tasty Bites, GCMMF, Haldiram and other local players.
The MTR Ready-To-Eat Range
MTR foods Pvt Ltd flagship brand MTR is amonst the top 5 processed food manufacturers in India having turnover estimated at US$ 261 million with the export market accounting for approximately 10% of MTR's total sales. MTR, proud of its rich heritage, tradition of food and hospitality began in 1924 with the establishment of the MTR by the Maiya family in Bangalore. The restaurant is a city landmark today and people still stand in queue to savour its unique, completely authentic dishes.
Then in 1975 the Maiyas diversified into the business of convinience foods and instant mixes. As business expanded modernization and state-of-art facilities including dedicated Lab and printing and packaging facilities were added. MTR is an ISO 9002 and HACCP certified company which stresses that its products are 100 percent vegetarian and contain absolutely no preservatives.
The company was recently acquired by Orkla, a Norway based company for US$80 million. After establishing itself in the south, MTR is developing its brand in the west and north Indian markets in line with the rapid expansion of its product line. MTR manufacture, market and export a wide range of packaged foods to global markets that include USA, UK, Australia, New Zealand, Malaysia, Singapore, UAE, Japan and Oman. Starting with the legendary MTR restaurant in Bangalore, India‘s silicon valley, now offer 'complete meal solutions'. Its wide range of products include Ready to Eat curries and rice, Ready to Cook gravies, frozen foods, ice cream, instant snack and dessert mixes, spices and a variety of accompaniments like pickles and papads.
Its deep understanding of culinary expectations and needs has resulted in many new and innovative products. Its investments in infrastructure and technology ensure them to scale rapidly and consumers across the globe count on to bring them all-natural, wholesome and delicious food that is also convenient and no-fuss. The RTE range currently comprises 22 Indian curries, gravies and rice.Then in 1975 the Maiyas diversified into the business of convinience foods and instant mixes. As business expanded modernization and state-of-art facilities including dedicated Lab and printing and packaging facilities were added. MTR is an ISO 9002 and HACCP certified company which stresses that its products are 100 percent vegetarian and contain absolutely no preservatives.
The company was recently acquired by Orkla, a Norway based company for US$80 million. After establishing itself in the south, MTR is developing its brand in the west and north Indian markets in line with the rapid expansion of its product line. MTR manufacture, market and export a wide range of packaged foods to global markets that include USA, UK, Australia, New Zealand, Malaysia, Singapore, UAE, Japan and Oman. Starting with the legendary MTR restaurant in Bangalore, India‘s silicon valley, now offer 'complete meal solutions'. Its wide range of products include Ready to Eat curries and rice, Ready to Cook gravies, frozen foods, ice cream, instant snack and dessert mixes, spices and a variety of accompaniments like pickles and papads.
In sync with product innovations, the company has also expanded retail presence significantly;
contemporary Namma MTR‘ is MTR's retail chain that allows customers to experience the wide MTR range. Namma MTR is split into three sections. One section showcases the entire range of products. The second section is a novel concept kitchen where customers can interact with specialist chefs to learn about MTR products and watch live demonstrations. This concept kitchen also
works as an ideal platform for feedback allowing the company to understand and address consumer needs The third section offers a variety of fast food — one can either eat here or get a quick take-away from the express counter and MTR kiosks now serve consumers across Bangalore and Chennai.
Preparation is really easy and hassle free. One needs to just put the aluminium cover with its contents into boiling water for 2 minutes, or empty the contents into a dish and place it on the stove or the microwave for 2 minutes.
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