FMCG majors vie for health food market share

As Hindustan Lever Ltd (HUL) is test marketing its health food brand, Kissan Amaze, in three southern states in India, Godrej (GODREJCP.NS : 290.3 +6.65) Hershey Foods and Beverages Ltd (GHFBL), a joint venture between Godrej Beverages and Foods Ltd and Hershey Company, is planning to introduce select brands from its international portfolio in the domestic market. HUL's arch rival, ITC Foods, is planning to extend the product portfolio of its health food brand in the next few months.

"Recognising the growth potential of the branded health food sector in India, FMCG majors are foraying into this sector in a big way. For the purpose, they are investing in research and development projects to take on rivals," said an analyst based in Mumbai. 'Health is wealth' seems to be the mantra in the Indian FMCG sector.

On HUL's new initiative, a company spokesperson said: "Amaze is currently being test marketed in Tamil Nadu, Andhra Pradesh and Karnataka. In fact, Amaze is India's first specifically designed brain food for school children. The product has been designed in a manner that the essential nutrients are made available and easily absorbed by the body."

According to the HUL spokesperson, the Amaze portfolio is available in two product formats, namely Bites and Milk Mixes." Bites are available in single serve pack size (30 gm) in chocolate flavor and Milk Mixes are available in 150-gram and 400-gram pouches and 30-gram sachets," he added.

Incidentally, GHFBL forayed into the milk food drinks category by rolling out the first made-in-India Hershey innovation, Hershey's Nourishing Milkmix,' in Tamil Nadu last year.

The company has just launched Hershey Chocolate Syrup in easy-to-squeeze bottles across the nation. "Our new launch is doing very well in India. We are looking at other new product launches this year, said Bobby Agarwal, executive director and COO of Godrej Hershey.

Meanwhile, ITC is beefing up its research and development projects to launch a slew of health food brands in India, according to industry sources. When contacted by FE, Chitaranjan Dhar, chief executive officer, ITC foods, said: "We are looking at several new categories including the health foods sector. The work is in progress."

According to industry analysts, with increasing competition, the niche sector is expected to register a healthy growth in FY10. "We will soon witness a major battle between swadeshi and videshi players in this segment," said a Mumbai-based analyst.